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Market Report

Calgary Retail Market Report

3Q 2022

Retail Sector Thrives on Soaring Consumer
Demand and Booming Construction Activity

Strong demand works in tandem with a surge in supply. The retail segment in Calgary is in a more balanced state compared to other major metros, as robust consumer demand is being met with equally strong supply of retail space. Similar to the sector recovery seen in other markets, solid job creation in the first half of the year helped solidify a healthy consumer base, and in turn provided a backbone for this rebound. Furthermore, the surge in oil prices added ancillary income to consumers working in the energy sector and provided additional support for demand. As a result, net absorption in the first half remained elevated at over 1 million square feet, roughly on par with the same period last year. Meanwhile, supply accelerated, increasing by 19 per cent year-over-year in the first six months, recording the highest first half addition since 2017. As positive net absorption outpaced completions, there was downward pressure on the vacancy rate.
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