I had no idea Canada was so different

Retail space increasing at record pace during recession

Canadian developers added retail space at a record pace while the country's economy went through a recession, spurred on by shoppers and investors such as the Ontario Teachers' Pension Plan continuing to spend. Builders added about 6.8 million square feet of retail space in the first half, more than in all of 2008, according to the Canadian unit of real-estate consulting firm CB Richard Ellis Group Inc., the largest publicly traded commercial-property broker. "A record amount of new retail space continues to be delivered and constructed even though the retail sector is showing some signs of stress," said CB Richard Ellis analyst Ricky Hernden in Toronto. The expansion is possible because Canadian retail spending recovered faster than other parts of the economy, such as factory production, in part because tax cuts and low interest rates supported household finances. Lending also held up, with Canadian banks largely avoiding U.S. pitfalls triggered by subprime home loans. Canada's retail boom contrasts with what's happening in the U.S., where bankrupt retailers vacated 2 million square feet this year and the Federal Reserve extended emergency support for commercial mortgage-backed securities.

I assume they know what they are doing but based on recent American experience there may not be great support for such belief. Construction spurred on by the supply of money makes me very nervous.