Why Calgary’s Retail Market Isn’t Slowing Down Anytime Soon

Calgary’s retail market continues to show strong momentum as 2025 comes to a close. New data from Barclay Street Real Estate points to steady tenant demand, very low vacancy, and limited available space across the city — all signs of a healthy and active market.

High Occupancy, Very Little Empty Space

Retail occupancy rose in the third quarter to 96.2%, while vacancy stayed near record lows at 3.7%. In simple terms, most retail space in Calgary is occupied, and there is very little sitting empty. Availability has also dropped year over year, showing that space is being leased quickly as it becomes available.

Limited Supply Keeps Pressure on the Market

Calgary remains below what is considered a balanced retail market, with less than two million square feet available citywide. Even though total retail inventory has grown slightly to 45.6 million square feet due to new developments, demand continues to absorb new space quickly.

Rents Are Rising in Key Areas

Low availability is pushing rents higher, especially in suburban retail nodes where demand is strongest. National retail chains are expanding their presence in Calgary, while local businesses are opening new locations and scaling up. Major redevelopment projects are also reshaping key urban retail areas, bringing new energy and foot traffic.

Momentum Carrying Into 2026

According to Barclay Street, these conditions position Calgary for a strong finish to 2025 and continued momentum into 2026. The mix of low vacancy, steady leasing, and limited new supply suggests the market remains resilient and well-supported.

An Active and Confident Retail Market

Brokerage activity reflects this confidence. Barclay Street is currently coordinating leasing for Homes by Avi’s Sovereign mixed-use project and recently facilitated the sale of Mona Lisa Artists’ Materials, further highlighting the strength of Calgary’s retail sector.

Overall, Calgary’s retail market isn’t slowing down because demand remains high, space is limited, and both national and local retailers continue to invest in the city.