Calgary’s retail sector continues to show strength, buoyed by population growth and strong demand in suburban communities, according to Mike Hoffman, managing director of CBRE’s Calgary office.
Hoffman said grocery-anchored retail remains particularly strong, with vacancy rates below three per cent in most markets outside the downtown core and super-regional centres.
He said strong migration into Alberta and Calgary over the past five years has helped drive retail spending as newcomers establish households, buy vehicles and furnish their homes. New residential communities including Livingston, Taza, Alpine Park and Redstone are also attracting new neighbourhood retail, with development activity in 2024 and 2025 surpassing levels seen in 2023.
Downtown retail weaker part of the market
Downtown Calgary remains the weaker part of the market, following the departure of Hudson’s Bay last year, Hoffman said.
But he expects the area’s retail prospects to improve as residential conversions bring more people into the core, with more than 1,000 new residents expected from buildings currently under construction. The growth is more likely to support street-front retail than the large enclosed shopping centres that dominate other parts of the city, he said.
CBRE’s first half of 2026 data shows vacancy declined to 5.8%, while the market recorded 267,000 square feet of positive net absorption following the disruption caused by the Bay closures in the second half of 2025.
“Market fundamentals remain strong, particularly for grocery-anchored, community, and daily-needs centres, supported by Calgary’s population growth and suburban expansion,” said the report.
The CBD and South Central submarkets continue to see higher vacancy, mainly due to downtown retail and regional mall vacancies, exacerbated by the HBC fallout, while suburban markets remain significantly tighter.
“Suburban performance remains exceptionally strong, with vacancy rates of just 0.4% in the South, 0.9% in North Central, and 1.7% in the Southeast, highlighting limited availability in key trade areas.
“Landlords remain in a favourable position, especially in high-growth suburban nodes where limited new supply and strong tenant demand allow for more selective tenant mix decisions.”
Hoffman said there are some pockets of new retail construction in the city.
“It’s part of a population growth story. As the city expands too, we’re seeing more and more. I would say right now we’re beyond 2023 levels in ’24 and ’25. So retail new development has increased, but it’s nowhere near the peaks at two and a half million square feet that we had in 2020 in H1.
“I think the other thing to be cognizant of is just part of why we’re not seeing as much development from new retail is just the cost to develop retail now, and the rental rates needing to achieve their pro forma are getting to a level where some retailers are not feeling comfortable moving into a new area or expanding their footprints.”
Strong suburban market
In its Canada Retail Rent Survey H1 2026, CBRE noted this about Calgary:
“Retailers are becoming increasingly selective in urban mixed-use environments. Traditional suburban centres meanwhile continue to outperform due to stronger parking, visibility, and customer accessibility.
“Calgary’s suburban retail market remains one of the strongest in Canada. Vacancy in many growth corridors is effectively full, with the South, Southeast and North Central quadrants continuing to post exceptionally tight availability as retailers pursue rapidly growing residential trade areas.
“Grocery-anchored developments are leasing well in advance of completion. Demand remains strongest from value-oriented grocers, food service, medical, fitness, childcare and service-based retailers seeking access to expanding suburban populations.”
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