Most of Calgary’s Retail Vacancy Is in CBD

Most of Calgary’s Retail Vacancy Is in CBD
News| April 20, 2026| Monte Stewart
Canada + Apartment Buildings

Most of Calgary’s retail vacancy is concentrated in the central business district (CBD) although the amount of empty space in the area has declined lately, says a new report from Barclay Street Real Estate.

CBD vacancy stood at 7.5% at the end of the first quarter, despite a modest 0.4% decline since year-end.

Calgary’s retail market continued its strong momentum into the first quarter of 2026, with overall vacancy tightening to 2.9%, down from 4% at the beginning of 2025. Total available space also declined year-over-year to approximately 2.1 million square feet from 2.1 msf, reflecting sustained tenant demand and limited supply, said Barclay Street.

“Calgary’s retail market is extremely tight, with sub 3% vacancy and strong demand. Today’s challenge isn’t demand, it’s a lack of available space,” said Andrew Sherbut, a partner and vice-president of retail services at Barclay Street.

The Beltline, located just south of the downtown core, posted the second-highest vacancy rate at 7.3%, also improving by 0.4%, while suburban markets remained significantly tighter. The southwest suburban market recorded one of the most notable gains, with vacancy dropping from 4.7% to 3.6% following roughly 120,000 square feet of net absorption.

Retail fundamentals improved across several formats during the quarter. Street-front retail vacancy declined by 0.5%, while community shopping centres saw a sharper 0.9% decrease. Approximately 160,000 sf of space was absorbed overall, largely concentrated in community shopping centres in the southern part of the city.

Demand remains strong across multiple retail segments, particularly for quick-service restaurants and large-format retail, though a lack of suitable space continues to constrain tenants. Service-oriented uses are also active, including daycare operators, driven by population growth and workforce participation.

New construction activity remained limited in the first quarter, with more emphasis on tenant openings in existing centres. However, a pipeline of purpose-built retail projects is underway, with most new supply expected between mid-2026 and early 2027.

At the same time, Calgary continues to attract new retailers. Emerging and international brands are expanding into the market, while infrastructure improvements — including ongoing construction along Stephen Avenue — are expected to support long-term growth in the downtown core.

Overall, the market remains firmly below equilibrium, supported by population growth, retailer expansion and tightening supply, positioning Calgary’s retail sector for continued stability and measured growth.

Pictured: Retail property at 112th Avenue N.E. and 38th Street N.E. in Calgary.

Photo: Courtesy of Barclay Street

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