Market Report
Calgary Retail Market Report
2025 Investment Forecast
Lower Interest Rates Support
Consumer Spending Amid Demographic Headwinds
Market remains resilient as vacancy stays low. Calgary’s retail sector has significantly benefitted from strong population growth in recent years. The metro’s lower cost of living, booming energy sector and growing labour force in non-oil industries have attracted new residents from both within and outside Canada, fuelling increased demand for retail goods and services. This demographic tailwind has contributed to four consecutive years of declining vacancy, while also spurring development activity and attracting domestic and international retailers eager to capitalize on the expanding customer base. An expected decline in newcomers this year, however, will slow population growth considerably, driven by the federal government’s new policy to curb both permanent and temporary immigration. This will mitigate a key driver of the metro’s retail sector expansion. Nevertheless, declining borrowing costs are likely to support per-capita consumer spending, helping to sustain robust sector fundamentals. Even with vacancy forecast to rise due to slower population growth and healthy supply dynamics, the year-end rate is still expected to remain low, signaling enduring resilience.
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