Following a record-setting 2025, Calgary’s retail market has continued to build on its strong momentum into the first quarter of 2026, according to a new report by Barclay Street Real Estate.
Calgary’s First Quarter 2026 Retail Leasing Landscape found that the overall occupancy rate is 97.1%.
Since the beginning of last year, headlease vacancy has declined from 4.0% to 3.4% at year-end and now sits at 2.9%, a notable 110–basis point reduction, said the report.
“Calgary’s retail market is extremely tight, with sub 3% vacancy and strong demand. Today’s challenge isn’t demand, it’s a lack of available space,” said Andrew Sherbut, Vice President – Retail Services, Partner, Barclay Street Real Estate.
The Barclay Street report said that at the end of Q1, market conditions remain firmly below equilibrium, underscoring sustained tenant demand. Total available space has tightened from about 2.3 million square feet to 2.1 million square feet, further constraining tenant options and placing continued upward pressure on rental rates.
The report said the Central Business District continues to report the highest vacancy among all submarkets at 7.5%, though this represents a modest 0.4% decline since year-end.
“Calgary’s retail market begins 2026 with strong fundamentals and sustained momentum carried from 2025; supported by tightening vacancy, steady absorption and continued retailer demand,” added Barclay Street.
“Ongoing population growth, retailer expansion and targeted infrastructure improvements position the market for continued stability and measured growth in the quarters ahead.”
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