Edmonton Retail Market Report

Consumer demand to be well-supported. Edmonton’s economy benefited from an oil price rally and robust population growth in 2022, which led to a swift recovery in the metro’s retail sector. Net absorption reached 940,000 square feet, the highest level witnessed since the start of the pandemic. As a result, vacancy dropped at a fast pace and approached its 2019 level. In 2023, although near-term economic headwinds may cause some uncertainty in the metro’s energy sector, public sector employment and persistent inflows of new residents will continue to prop up the local economy. This will support the metro’s retail fundamentals. Given these advantages, Edmonton has seen new international retailers, such as Uniqlo and P.F. Chang’s, enter the local market in recent years, enriching the metro’s shopping and dining experience. On the supply side, construction activity slowed in the final quarter of 2022 and is expected to remain subdued this year, as development costs remain high amid widespread labour shortages.