Canada’s retail real estate market remained relatively strong through the first half of 2026, with fitness among the service-oriented categories helping drive leasing activity, according to CBRE’s newly released Canada Retail Rent Survey H1 2026.

The report found that vacancy remains tight across several key retail formats, particularly in grocery-anchored and suburban centres. At the same time, leasing demand continues to shift toward businesses built around services and experiences, including fitness, medical, personal services and quick-service restaurants.

For fitness operators considering expansion, the picture is mixed. Demand for well-located space remains healthy, but limited availability can make desirable locations harder to secure. CBRE noted that quality retail inventory is effectively at capacity in some high-growth corridors, while rental rates increased in 28 of the 131 retail formats or key urban areas tracked in the survey.

The trend is particularly evident in several suburban markets. Calgary continues to see strong demand from fitness and other service businesses in rapidly growing residential areas, while Kitchener-Waterloo is seeing demand from fitness/recreation, pharmacy, medical and personal-service tenants. In Winnipeg, a national fitness tenant has already been secured as an anchor for an expansion of Sage Creek Village.

The broader takeaway for Canadian fitness operators is that physical fitness facilities remain an attractive use within the changing retail landscape. As traditional retail continues to evolve, landlords are increasingly looking to businesses that generate repeat visits and cannot easily be replaced by online shopping.

For operators, however, that growing demand may also mean more competition for strong suburban locations and continued pressure on occupancy costs.