Most vacant Toronto street is still one of the most expensive areas in the city

The upscale shopping district in Toronto's Yorkville neighbourhood — better known as the Mink Mile — is still one of the most expensive areas for retail real estate in the city despite also having the highest vacancy rate, according to a new report. 

The luxurious stretch, located on Bloor Street between Yonge Street and Avenue Road, has been internationally recognized as one of the most affluent shopping streets in North America, even drawing comparisons to New York's Fifth Avenue and Chicago's Magnificent Mile. 

Despite its global prestige, the street has witnessed several significant retail closures over the past few years, including Toronto's first Zara store, Gap, Hudson's Bay, and H&M — although it is slowly showing signs of a rebound. 

The high retail space rents along the street have meant that many independent retailers have struggled to keep afloat, and have often been forced to close their doors or relocate to budget-friendly districts. 

Hudson's Bay permanently closing Toronto store after almost 50 years https://t.co/GwvpAcy7fi #Toronto #HudsonsBay #BusinessClosure

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However, other brands have slowly started to step in to fill the gaps, including Fabricland, athletic apparel retailer, Alo, and Brown Shoes. 

According to global real estate services firm, Jones Lang LaSalle's Q2 Toronto retail market overview (April 1 to June 30), the street actually had the highest percentage of available retail space at 18.75 per cent in the city, with the highest average asking rent of $222.73 per square foot. 

In Q3, Mink Mile had 16.39 per cent availability, and its average asking rent price increased to $267.50 per square foot. While there are still lots of available spaces along the luxurious stretch, new leases and multiple construction projects in the area paint a hopeful future. 

This Toronto neighbourhood skyline is about to become the city's tallest https://t.co/BgmI4eBFix #Toronto

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According to Arlin Markowitz (executive vice-president, urban retail team at CBRE) who spoke with the Globe and Mail, there are many currently vacant spaces in the area where leases have been signed behind the scenes. 

One example is the 40,000-square-foot space at 110 Bloor St. W., which is currently vacant but under construction. Markowitz says a deal was recently completed with Saint Laurent for a 10,000-square-foot space in the building. 

Prior to lockdowns, most retail spaces in the area were up for rent in the $300 per square foot range, and rent prices are slowly starting to catch up following a dip through the pandemic. 

Along with new retail spaces on the horizon, the Bloor-Yorkville area is the site of several future high-rise buildings, which are sure to boost population growth in the area, and increase foot traffic along the Mink Mile.