Edmonton Retail Market Report

Retail property performance differs. Edmonton’s retail market is showing some bifurcation across locations and assets. For instance, the metro’s suburban areas have captured a larger share of Edmonton’s historic population growth, given better housing affordability and vehicle-oriented convenience. Because of these evolving dynamics, retailers are shifting to smaller, higher-productivity stores in suburban settings, as they appear to be better suited for capturing demographic tailwinds. Essential-based goods and services are also helping drive foot traffic to suburban strip and neighborhood centers. As a result, these outlying submarkets are showing lower vacancy rates at sub-3.0 per cent, while also generating positive investor interest. In contrast, vacancy in Central Edmonton is upwards of 10 per cent. Downtown retail still hinges heavily on office sector health, and while improving, occupancy levels remain low for the sector. Consumer foot traffic is muted as a consequence.