Retail Insider • October 28, 2025

Calgary’s retail market continues to demonstrate strength and resilience, according to a new report by Barclay Street Real Estate.  

Availability has steadily trended downward since the start of 2025, reaching 3.8% in the third quarter – a decrease of 20 basis points quarter-over-quarter and 90 basis points year-over-year, said the report.

“With less than 2 million square feet available citywide, Calgary remains below what is typically considered a balanced market. Limited supply is fueling upward pressure on rental rates, with occupancy climbing to 96.2%,” explained the report.

“The city’s retail landscape remains stable, supported by strong tenant demand. The narrow gap between availability and vacancy reflects a stable market with little excess space set to return, underscoring the steady absorption of existing inventory.

“Retailer confidence is especially evident in suburban nodes, where service-oriented and food-based retailers remain highly active. Calgary’s retail inventory now totals 45.6 million square feet, representing an increase of approximately 300,000 square feet since the start of the year as new projects were delivered.”

Barclay Street said the quarter saw the completion of Fourth Street Lofts in the Beltline, adding 3,500 square feet, along with the Junction at Market and Main (Blocks 88 and C) in Seton, bringing additional street front retail supply. Despite this growth in inventory, overall availability has decreased by 70 basis points since January, highlighting strong absorption across the market.

“Suburban submarkets are leading performance, with vacancy in northern Calgary at 2.2%, demonstrating particularly strong tenant demand. Downtown vacancy, by contrast, remains elevated, driven by higher operating costs, shifts in consumer patterns, and ongoing changes in the office market,” said Barclay.

“By format, community shopping centres and street front retail continue to perform steadily while activity in the beltline has strengthened – dropping vacancy 60 basis points to 7.6%. Southpoint Plaza in Calgary’s southeast has entered the construction pipeline and is now actively pre-leasing. Once complete, it will add meaningful supply to an already thriving suburban hub.

“Anthem and Harbour Equity also broke ground on a new open-air retail centre in Belmont. The project will deliver 145,000 square feet across 14 buildings, anchored by grocery, drug, and liquor stores, alongside quick-service and full-service restaurants. Construction began in August 2025, with completion targeted for Summer 2027.”

The report said service-based retail continues to lead leasing activity, extending the momentum seen earlier this year.

“Food and beverage operators remain especially active. Local favourite, Pie Junkie expanded with its fifth shop, while national brands like Dave’s Hot Chicken and Wingstop continue to enter Calgary’s strongest trade areas. These new openings reinforce confidence in the city’s consumer base and its ability to attract both local entrepreneurs and international investment,” said Barclay.

“As Calgary’s retail market enters the final quarter of 2025, record-low availability fuels upward pressure on rents, while suburban nodes are capturing strong tenant demand. National brands are expanding, local concepts are scaling, and major redevelopment projects are re-shaping urban nodes. Together, these dynamics position Calgary for a strong finish to 2025 and sustained momentum into 2026.“