Calgary’s retail vacancy rate remained at 3 per cent in the third quarter of 2026, with strong demand in suburban shopping districts contrasting with rising vacancies in the downtown core and Beltline as new retail space enters the market, according to a new report by Barclay Street Real Estate.
The brokerage’s Calgary Third Quarter 2026 Retail Leasing Landscape report found overall retail occupancy held at 97 per cent at the end of September, while the amount of space available for headlease or sublease remained unchanged at 3.1 per cent.
The figures point to a market experiencing different conditions depending on location and retail format, with suburban neighbourhoods continuing to attract tenants while downtown Calgary works through additional ground-floor retail supply associated with new developments and office-to-residential conversions. barclaystreet.com
Suburban retail markets maintain tight vacancy rates
Northeast, northwest and southeast Calgary account for roughly 70 per cent of the city’s retail inventory, and all three areas recorded vacancy rates of 2.3 per cent or lower in the third quarter.
Southeast Calgary’s vacancy rate increased slightly by 10 basis points to 1.8 per cent, matching the northwest’s rate. Northeast Calgary remained at 2.3 per cent, while southwest Calgary recorded the strongest improvement, with vacancy tightening 40 basis points to 3.8 per cent.
The report attributes continued demand in suburban neighbourhood shopping centres partly to retailers serving everyday consumer needs. Neighbourhood shopping centre vacancy tightened 90 basis points to 3.5 per cent, while community shopping centre vacancy improved 20 basis points to 2.2 per cent.
Enclosed shopping centres and power shopping centres remained particularly tight, with vacancy rates of 0.2 per cent and 0.5 per cent, respectively. Big-box retail vacancy stood at 0.8 per cent.
Street-front retail continued to have a higher vacancy rate of 6.8 per cent, reflecting the additional space available in walkable commercial districts.
Downtown vacancy rises as new retail space enters market
Downtown Calgary recorded a retail vacancy rate of 9.4 per cent in the third quarter, while the Beltline reached 8.1 per cent. Both areas experienced increases as new ground-floor retail space became available.
The report identifies the arrival of additional retail space in mixed-use residential developments as an important factor shaping the downtown market.
In Downtown West, Astra Group is advancing three residential redevelopment projects expected to introduce nearly 500 homes alongside revitalized street-level and +15 retail space.
Barclay Street Real Estate has been appointed to handle retail leasing at Petro Fina, 800 Six West and Atrium I & II.
The properties are positioned to benefit from increased residential density, transit connections and a daytime employment base of more than 80,000 people within one kilometre.
The 800 Six West project includes renovated main-floor retail and upgraded +15 space as part of a 204-unit residential conversion. Atrium I & II is expected to add another 181 residences and a rebuilt retail podium in 2027, with potential opportunities for grocery stores, food services and other retailers.
Myles Scheske, senior associate at Barclay Street Real Estate, said the residential conversions could create additional retail opportunities in the downtown area.
“We’re excited to partner with Astra Group as they play a significant role in the revitalization of Calgary’s Downtown West. Their investment in converting underutilized office buildings into residential communities creates new opportunities for businesses while bringing renewed activity to both the street level and the +15 network. It’s an important step in reshaping this part of downtown.”
New developments add to retail construction pipeline
Several projects reached completion during the third quarter, adding new retail inventory to Calgary’s suburban markets.
The Convenience District at Alpine Village delivered 60,000 square feet of retail space, ahead of its previously identified year-end target. Truman’s Plaza at West District also completed construction, adding 15,000 square feet.
Four additional projects involving ground-floor retail in mixed-use residential developments were added to the pipeline during the quarter.
Among the planned developments are Truman’s Gallery First & Tenth in the Beltline, which will contribute 22,000 square feet, and the neighbouring Imperia project, which is expected to add another 5,500 square feet in 2027.
Other projects include The Sydney on 16th, a 27,000-square-foot development planned for Crescent Heights, and Poplin, which is expected to add 5,000 square feet in Bridgeland-Riverside.
In northeast Calgary, Saddle Ridge Crossing received its building permit for approximately 200,000 square feet of retail space, with its first 83,000-square-foot phase under development.
The report also identifies Stonegate, a 460-acre community east of Deerfoot Trail being developed by Qualico, as a future source of commercial space intended to serve more than 2,500 planned homes.
Restaurant openings and retail investment continue
Restaurant leasing and openings were among the notable retail market developments during the quarter.
Shake Shack opened its first Canadian drive-thru on Macleod Trail SW, followed by Jersey Mike’s first Calgary restaurant nearby. Jimmy John’s also opened in University District.
Other openings included Italian Centre Shop at Northland Village Mall and CouchHaus, which selected the Beltline for its newest showroom. CRAFT Beer Market also opened at Shepard Flats in southeast Calgary.
Barclay Street reported several leasing transactions during the quarter, including a 2,023-square-foot drive-thru unit at Jacksonport leased to Tim Hortons. The brokerage also completed a 9,420-square-foot lease at Glenmore Court Mall in southeast Calgary, filling space previously occupied by a gym.
Retail market outlook for remainder of 2026
Looking ahead, Barclay Street expects Calgary’s overall retail vacancy rate to remain close to 3 per cent through year-end, supported by tight conditions in suburban shopping centres and a steady pace of new development.
The report also points to several developments and business investments that could influence the market in 2027.
Dollarama is investing in its Calgary distribution centre to support growth in Western Canada, while apparel brand Mondetta is considering Calgary for its first permanent stores next year.
Hermès’ planned opening on Stephen Avenue and Astra Group’s expanding Downtown West portfolio, including plans involving the former Hudson’s Bay building, are also identified as developments to watch.
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