Calgary’s retail real estate market demonstrates stability and healthy demand. The vacancy rate has held steady, while average market asking rents have climbed to nearly $30 per square foot, according to JLL’s Q1 2026 Market Dynamics report.
This consistent rent growth reflects ongoing retailer confidence in the market. Net absorption remained positive in 2025 even with the Hudson’s Bay closures. General retail drove absorption, while malls lagged, said the report.
Airdrie and Northwest Calgary were the most popular submarkets for retail expansion. Construction starts and under-construction volume increased significantly, highlighting developer optimism for future demand, it added.
“Overall, Calgary’s retail market offers strong occupancy, rising rents, and measured new supply additions. Anthem Properties and Rencor Developments have secured Costco as an anchor retailer to its 300-acre Bingham Crossing development in Springbank, west of Calgary,” said JLL.
“Meanwhile, Brookfield is developing Livingston Commercial Centre, a 113,000-s.f. daily needs shopping plaza in Northeast Calgary. Calgary’s food & beverage sector continues to gain momentum, reinforcing the city’s position as an emerging dining destination. Recent openings include Foodtastic’s Enoteca Monza at CF Market Mall, while Happy Belly Food Group is bringing iQ Food’s first Western Canada location to the city.
“Beyond dining, Lululemon opened a flagship on 17th Ave. Outlook Calgary is expected to remain a top growth market for household expenditures, with new communities driving retail plaza demand. The city is well-positioned for CUSMA renegotiations, with the Trans Mountain pipeline providing expanded export capacity to non-U.S. markets. Sales of core discretionary goods have outperformed expectations, particularly in home furnishings, clothing & accessories, and jewellery.”
The report said the vacancy rate remains stable at 2.4 per cent − among the lowest in North America. Construction activity surged by 67 per cent, with over 2 million square feet under construction in 2025. New development activity is expected to continue in the foreseeable future. Despite closures, the market posted positive net absorption of approximately 360,000 square feet in 2025. Leasing volume increased by 10 per cent in 2025, reaching 1,370,000 square feet.
Ron Odagaki, Associate Vice President, Retail at JLL, said Calgary still has a fairly strong retail base with retail sales being stable.
“We still have a relatively low and stable vacancy rate. I think that’s what’s driving demand, and the lack of supply of retail spaces is keeping rental rates up and keeping demand up as well, he said.
“Calgary’s fundamentals in terms of retail and consumption, and new businesses looking at Calgary as a market to expand into, are strong. Calgary has fundamentals that are attractive to a lot of retailers, existing or new entrants, and I believe that will continue in the foreseeable future. We’re probably one of the stronger markets in the country, with a very rosy-looking future relative to what’s happening elsewhere. Because of that, Calgary continues to be a focal point for retailers entering Canada or expanding from other provinces.”
Odagaki said there’s been a transition to value-conscious retail.
“If you look at grocery, dollar stores, thrift stores, those segments are doing well. There’s also been an uptick in discretionary spending in what I’d call “sweet rewards”—sweet treats, desserts, things like that. That part of the food sector in Calgary has seen an increase in sales,” he said.
“We are getting a lot of calls from retailers seeking to capitalize on the resurgence and new stability of the downtown. Overall, when you include the Beltline as part of the larger downtown core, and the residential coming in, it’s creating a stabilizing effect for the inner city. There’s optimism around a new benchmark in terms of return to office and regular workweeks. That’s reflected in increased traffic and optimism from retailers, including fast food operators, looking to expand downtown.
“I think retail in Calgary is still stable. The influx of residents might be slowing down, but we’re still probably one of the cities leading the pack. That data continues to support retailers looking at Calgary as a destination for new stores.”
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