Edmonton’s retail market is experiencing significant growth, fueled by strong immigration, inter-provincial migration, and a lower cost of living compared to other regions in Canada.
According to Paul Raimundo, Principal at Avison Young, the city is witnessing an increase in demand for retail services, with a particular boom in suburban areas. The southwest remains the strongest part of Edmonton, with developments like Glenridding Village, a new grocery-anchored retail centre, contributing to the city’s retail expansion. Notably, many new developments are nearly fully pre-leased before opening, indicating a thriving demand for retail space in the area.
Despite challenges faced by Edmonton’s downtown core due to the shift in work patterns post-COVID, there are signs of recovery. As a government town, Edmonton is still adjusting to hybrid work models, which has impacted foot traffic in the core. However, Raimundo notes that Calgary is typically ahead of Edmonton by six to 12 months in retail trends, and the Edmonton core is starting to see more people return. The return of workers and visitors, combined with the ongoing success of the new arena and other downtown developments, is expected to drive further retail recovery in the city.
Looking ahead, Raimundo remains optimistic about Edmonton’s retail landscape, with a focus on community-driven developments and mixed-use centers. These centres are not just about retail, but also include community spaces, soft seating, and music to create inviting environments. As vacancy rates continue to decline and new developments take shape, Edmonton is poised for continued retail success in the coming months, reinforcing its position as an appealing market for businesses and consumers alike.
With a high personal income per capita compared to Canada’s other major metropolitan areas, Edmonton is an attractive retail destination.
Retail vacancy rates on the decline
According to the latest retail report from global commercial real estate advisor, Avison Young, vacancy rates for the city are on the decline, particularly in the suburbs – with a shift toward more urban, mixed-use concepts.
“The retail market is very robust today. There’s a lot of activity and interest in the market. We’ve had good immigration and inter-provincial migration to the province. Edmonton benefits from a lower cost of living compared to the rest of the country. This has resulted in growth, which translates into a need for more services,” said Raimundo.
“We’re seeing a lot of QSR (quick-service restaurant) tenants active, and grocery stores are thriving, especially in suburban markets with new grocery-anchored sites. The southwest area of the city remains the strongest and has been for some time. We are seeing some new centres coming out of the ground finally.
“We’re working on a project with Rohit Developments in the southwest, called Glenridding Village, a 13.3-acre site. We built seven buildings last year, and they all took possession early this year. Freshco will open in late May. We added around 150,000 square feet to the market in that area. We have three more buildings coming, but it’s not just us; there are other developments too. For example, Keswick is doing well and staying full. Cameron Developments has leased out the remaining space in their development, adding a specialty Italian grocery store, Tesoro.
“The Currents of Windermere is also changing, with some tenants leaving post-COVID, but the vacancies aren’t due to a lack of demand—they’re just waiting for the right tenants to come in. Harvard and Cameron are very particular about what they do at that site. There’s also a new residential building coming out of the ground with some ground-floor retail.
“The city is growing. The southeast, northwest, and areas like Albany and Newcastle are doing well in terms of leasing. Overall, Edmonton is in a great spot right now, and I’m pretty bullish on it. The market has been very active over the last 18 months.”
Downton is making strides
Raimundo said the downtown core is making strides. It’s not quite where it was pre-COVID, but it’s improving. The shift is mainly driven by the fact that Edmonton is a government town, and there’s still a hybrid work model being sorted out. In Calgary, being a private business hub, they’ve pushed many staff back to the office full-time, but in Edmonton, that’s still a work in progress.
He said Calgary is about a year ahead of Edmonton in terms of retail recovery. It’s pretty typical for retail trends in Alberta—Calgary is usually six to 12 months ahead of Edmonton.
“The core is starting to see more people come back, which is great. We need more bodies to come back and that will help us,” said Raimundo. “Pre-COVID we were in such a good spot with the arena opening (in Ice District).”
Raimundo is a big fan of Edmonton. He thinks it’s a great market to do business in. A lot of restaurants start in Edmonton, test their concepts, and then expand to other cities or even nationally.
“The activity has been great. We’re a busy market. We have lots to do. We have lots of things to see and I think as we continue on in these next 12 months we’re going to super excited to see more and more of these sites come to fruition. Our vacancy rate is declining. There’s space that’s being eaten up whether it’s existing and/or new product. Most of the new product coming out of the ground is nearly full pre-leased by the time it’s turned over,” he said.
Retail Trends for Edmonton
According to Avison Young’s latest retail report, these are the retail trends to watch for in Edmonton:
- Retailers benefiting from province’s growth
Edmonton’s population growth remains the highest in the country, driven by international immigration and interprovincial migration. Edmonton boasts the highest personal income per capita among Canada’s major metropolitan areas, making it a very attractive retail destination. The region’s consumer base and economic stability are compelling factors for retailers and investors from outside of the province, which further stimulates the local economy and elevates the area’s profile.
- Retail vacancy continues to decline
E-commerce sales in Canada have leveled off after a significant surge during the COVID-19 pandemic. Meanwhile, vacancy rates for brick-and-mortar stores have been on the decline, particularly in the suburbs. Retail development has slowly increased in response to demand. While traditional big box and community centres continue to be developed, zoning requirements are driving a shift toward more urban, mixed-use concepts.
- Further grocery store growth is anticipated
Investor preference for essential retail has driven persistent demand for grocery-anchored shopping centres. In Canada, core retail sales continue to be led by non-discretionary merchandise, such as food and beverages, reflecting consumers’ adaptation to an increase in cost of living. Investors are attuned to this trend, prioritizing lease “quality” by favoring long lease terms, stable cash flows, and high covenant strength. Grocery-anchored retail is ideal in this respect, with demand outpacing supply particularly in primary and secondary markets with favourable demographics.
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