Calgary Retail Market Report

Demand tailwinds drive retail property sector. Economic growth in Alberta outpaced the national average in 2023. This was largely fueled by a healthy energy sector, which has traditionally been the province’s economic engine. The region has also witnessed historic population growth, with Calgary seeing its resident count increase by 6.0 per cent annually in 2023. This was largely driven by the region’s lower cost of living and diversifying economy. These factors not only resulted in some of the highest real disposable incomes among major Canadian metros but also supported a median household income roughly 20 per cent above the national average. Calgary was able to manage elevated borrowing costs more effectively as a result, with total retail sales up 10 per cent between the start of 2022 and May 2024. This pace of growth was well above the nation at large, which saw a 5.0 per cent jump. Consequently, Calgary’s retail property sector has shown healthy performance, with the vacancy rate seeing one of the largest yearly drops among major Canadian metros as of the second quarter.