In 2026, the Barrie, Ontario commercial landscape is undergoing a significant transition. After several years of high inventory and buyer hesitation, the market is shifting toward stabilization and specialized redevelopment.
Here are the key commercial trends for Barrie in 2026:
1. The “Mixed-Use” Zoning Revolution
Barrie has implemented a major overhaul of its Zoning By-laws and Official Plan.
- Commercial to Residential: New zones (like CD1 and CD2) now explicitly encourage owners of aging strip malls and big-box retail centers to add residential units.
- Urban Intensification: The city is moving away from “low-density sprawl” toward transit-supportive, compact development, particularly near the Allandale and Barrie South GO stations.
- “As-of-Right” Density: New rules allow for four units per property as-of-right, which is changing the math for small-scale commercial and multi-family investors.
2. Industrial Sector: Nearing an Inflection Point
Industrial space remains Barrie’s most resilient asset class, though it’s facing a “supply paradox.”
- Low Vacancy: Rates in Simcoe County have hovered around 4.75%, keeping demand for freestanding buildings with yard space very high.
- Large-Format Rebound: After a slow 2025, large-scale leasing (spaces over 100,000 sq. ft.) is picking up speed, with projections suggesting that large-bay availability will be cut in half by late 2026.
- Construction Costs: High building costs have paused some speculative projects, making existing “second-generation” space more valuable than ever.
3. Office & Institutional Growth
The office market is reinventing itself around “connectivity” and “experience.”
- Downtown Revitalization: Significant investment is flowing into the core, highlighted by the Georgian College Downtown Campus and the Lakehead University STEM Hub.
- Flight to Quality: Companies are ditching older, isolated offices for spaces near downtown amenities or the “Skywalk” transit system to entice employees back to the office 4–5 days a week.
- Zero Tax Increase: The City of Barrie’s 2026 budget approved a 0% increase to the operating budget for the fourth year in a row, a move designed to maintain a business-friendly environment for corporate relocations.
4. Retail Stability & Small Business
- Localized Growth: While large-scale retail is evolving into mixed-use, secondary neighborhood plazas are seeing stable growth.
- Cap Rates: Currently, average market cap rates in Barrie are circling approximately 3.36% for high-demand retail/mixed-use properties, reflecting a competitive investment environment despite higher interest rates.
Market Quick Stats (Early 2026)
| Metric | Status |
| Industrial Vacancy | ~4.75% (Tight) |
| Retail Cap Rates | ~3.36% (Average) |
| Market Sentiment | “Strong Buyer’s Market” in residential; “Stabilizing” in Commercial |
| Infrastructure Focus | GO Transit corridor & Downtown academic expansion |
With industrial vacancy rates tightening to 4.75%, finding functional Barrie industrial space requires more than just a search—it requires a competitive edge. Whether you are relocating from the GTA or expanding local operations, Allen Mayer provides the data-driven analysis and off-market insights necessary to secure premium warehousing and office assets before they hit the general market. Don’t leave your relocation to chance in this stabilizing market; leverage professional tenant representation to negotiate the best possible terms for your business. Contact Allen Mayer to discuss your 2026 real estate requirements today.