What's on the ground floor matters to anyone living or investing nearby. A new report on Toronto's waterfront retail market shows a neighbourhood that's busy in the west and centre, and still filling in to the east. Here's what the numbers say and why they matter to condo buyers.
13.3% overall waterfront retail vacancy | 27% vacancy in the eastern waterfront |
3.8 km Waterfront East LRT, early construction authorized in 2026 | 1,700+ homes planned in Quayside's first phase |
The Numbers at a Glance
According to Retail Insider's October 2, 2026 report, which draws on the Waterfront BIA's 2026 Broker Package:
| Area | Retail vacancy |
|---|---|
| Western waterfront | 8% |
| Central waterfront | 7% |
| Eastern waterfront | 27% |
| Overall | 13.3% |
The BIA counts 300 commercial units, with 260 operating and 26 new businesses identified. Central waterfront closures were quickly refilled, with two restaurant spaces taken by new operators before they were marketed.
Why the East Is Different
Eastern vacancy reflects a neighbourhood that's still adding buildings. As the BIA's Dorsa Alizadeh-Shabani put it, "The eastern waterfront is the newest part of the waterfront that is still continuing to develop and grow." Recent additions in the east include a climbing gym, a virtual golf venue and a fitness studio.
What's Coming
- Quayside: the first phase is planned to include more than 1,700 affordable and market rental homes and the first Toronto Public Library branch on the waterfront. Read our update on Quayside demolition.
- Waterfront East LRT: a roughly 3.8 km line, funded by all three levels of government. Toronto City Council authorized early construction in 2026, and the BIA expects most of the eastern commercial shift once transit and Queens Quay public-realm work are complete.
- Aqualuna at Bayside: the final residential phase of Bayside Toronto, with 240 condo units and about 18,000 sq. ft. of ground-floor commercial space. See our Bayside guide.
- Keating Channel Pedestrian Bridge: expected to open in mid-2028.
The report also notes that redevelopment at Quayside and 1 Yonge removed commercial space, including seven former business locations and five vacant spaces.
Who Lives and Visits
The BIA reports an average waterfront household income of $151,857, an average household size of 1.8 and an average resident age of 38. Environics data recorded 74.3 million visit events in 2025, a count of visits and not unique people. The central waterfront mainly serves tourists and visitors, while the west leans toward residents.
What It Means for Buyers
- Retail mix is part of the neighbourhood. Walk the blocks around a building and see which spaces are active.
- Timing differs by area. The eastern waterfront is still developing, and the BIA ties much of its retail shift to transit and public-realm work that isn't finished.
- Look at the building too. Retail around a tower doesn't replace due diligence on fees and reserves. See which waterfront buildings hold value best.
Compare other options, such as 1 Yonge Street and Sugar Wharf.
Source: Retail Insider, "Toronto Waterfront Retail Market Evolves as Eastern District Builds Out".
Want help comparing waterfront buildings and areas? Contact our team and we'll build a shortlist around your goals.
This article is for general information only and is not investment advice. Figures come from a single trade report as of October 2026 and may change.
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