Calgary retail insight
Sustained demand and decreasing availability drive Calgary's retail-leasing market
- Heli Brecailo
Market news
About 1.6 million s.f. were absorbed in 2024, higher than in 2023, with greater net absorption in general retail. Construction starts remain subdued, continuing to tighten the market.
Available space has dropped 60 basis points to 2.8 percent and asking rents continue to rise, although at a slower pace than the national average.
About 1.2 million s.f. of leases were signed in 2024. This is in line with the five-year average leasing volume, and demonstrates signs of post-pandemic stabilization.
Demand for retail space strengthened in 2024, with most net absorption coming from general retail. Demand continues to outpace supply, with available space declining in all property types except power centres. The current availability rate remains low at 2.8 percent, placing Calgary among the tightest major markets in North America.
Asking rent growth has moderated since its peak in 2022, in line with the five-year historical average. Leasing volume dropped significantly from 2023 but is closer to the pre-pandemic historical average ─ a sign of normalization. Supply increased in 2024, particularly in general retail, but construction starts dropped.
Per our 2025 Calgary and Surroundings Retail Trends report, 47 percent of Calgary’s opening announcements in the second half of 2024 were in dining, 16 percent in apparel & accessories, and 14 percent in entertainment and specialty sectors. In turn, apparel & accessories and dining have dominated mall leasing, with Lovisa, Lugaro, and Parka in Chinook Centre, and Baskin Robbins and KFC in Southcentre Mall. Asian beauty Kiokii and... opened a location in Chinook Centre.
The City of Calgary plans to improve the downtown retail environment, making Stephen and 17th Avenues vibrant, pedestrian-friendly destinations. In addition, public transit ridership and air passenger traffic fully recovered to pre-pandemic levels in 2024, benefitting downtown foot traffic as well.
Outlook
Calgary’s retail leasing market moderated in 2024, but net absorption remains high and available space continues to trend down due to low construction levels, increases in real retail sales per capita, and record population growth. However, a significant new downside is U.S. tariffs ─ Calgary is a major hub that exports crude oil and natural gas to the U.S. Midwest, making it one of the most vulnerable markets in Canada. Despite this and other headwinds including slower population growth and increased unemployment, Calgary is expected to be one of the fastest-growing markets over the next five years.
