Calgary’s suburban retail market is among the strongest in Canada, according to a new report from CBRE. These are shopping areas outside of downtown that typically feature strip malls, grocery stores and large parking lots. The report says demand for retail space remains high in some of the city’s fastest-growing communities, while the amount of available space remains limited. Calgary’s south, southeast and north-central areas are seeing particularly strong demand as the city continues to grow, and businesses look to get closer to new and expanding residential communities. “We’ve been having tremendous residential growth in the city for the last few years with over 200,000 people moving, so those new residents need the services, so at the edge of the city where these areas have been growing the demand has been incredible,” says Alistair Corbett, the senior vice-president of retail leasing with CBRE. Grocery stores are among the retailers driving demand, but the report says they’re not alone. Medical and health services, fitness businesses, childcare, restaurants and other service-based retailers are also looking for space. In some cases, businesses are signing leases before new retail developments are even completed. “Our overall vacancy rate is very low and select areas of the city like the suburbs have been major growth drivers for our city,” adds Corbett. Calgary’s strong performance is part of a broader trend across the country. CBRE says Canadian retail properties had a strong first half of 2026, with rental rates increasing in every retail category in at least one Canadian market. However, the report says retailers are becoming more selective about where they expand. Luxury retailers have been more cautious about opening new locations, while athletic and athleisure brands continue to expand. Health and wellness businesses and food and beverage operators are also adding to demand for retail space. In Calgary, continued population growth and limited available retail space are expected to keep demand strong, particularly in the city’s newer and fastest-growing communities.
