Calgary retail market report

Calgary retail market trends

 

01. Retailers benefiting from  province’s growth

Calgary's population growth remains the highest in the country, driven by international immigration and interprovincial migration. Calgary 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.

 

02. 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.

 

03. 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.