Calgary Retail Market Report

Strong economy aiding retail sector performance. Calgary’s retail vacancy rate continued to inch lower in 2023, reaching its lowest level since 2016. A thriving economy supported by rising oil production and elevated population growth helped strengthen the local consumer base and sustained retail space demand, despite elevated interest rates. In contrast to the previous year, the vacancy rate dropped the most outside of the urban core, as suburban retailers expanded their presence to accommodate the ballooning population, as well as ongoing hybrid work arrangements. Vacancy declined in the downtown area as well. Office vacancy rates have been falling — causing an uptick in foot traffic — while completions have remained subdued. This trend is expected to persist for another year in 2024, supporting the retail sector amid elevated interest rates. Retail space demand will outpace supply growth again, leading to a further decline in the vacancy rate.