Edmonton Retail Market Report

Suburbs benefiting from increased foot traffic. Annual population growth in Edmonton sat just below 6.0 per cent as of June, marking the highest rate of change among all census metropolitan areas in Canada. Edmonton’s suburbs, mainly around the Anthony Henday ring road, have benefited the most from this expanding resident count, as these areas allow newcomers to purchase homes at more affordable prices. Retail vacancy within these regions sat well below the metro-wide average of 3.1 per cent as a result. Conversely, due to muted foot traffic amid elevated office vacancy rates prior to the pandemic and ongoing hybrid work arrangements, retail vacancy in more urban submarkets, such as downtown and Old Strathcona, neared 7.0 per cent. Consequently, retail property development has mainly been concentrated in these suburban markets in the form of open-air malls or free-standing, multibuilding complexes. This is in contrast to the large focus on mixed-use developments seen in Canada’s other major metros. Nevertheless, these new projects are attracting big box retailers and grocers, driving space demand and rent growth.