Calgary Retail Figures H2 2023

February 26, 2024 5 Minute Read

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-       Calgary's retail vacancy continues to trend downwards, dipping 20 basis points (bps) from 6.0% in H1 2023 to 5.8% in H2 2023.

-       The city's diverse population and strong local economy has provided a solid foundation for retailers.

-       The highest vacancy continues to be in the Central Business District (CBD), where rental rates have compressed, and inducements have increased to attract tenants.

-       Asking rents in highly sought-after suburbs have appreciated more in response to a combination of strong demand and limited new supply.

-       Skilled labour shortages, construction delays, procurement issues, and the high-interest rate environment have led to the lowest amount of new retail inventory under construction in over a decade.

-       Conventional new retail development must be top-tier sites, with strong tenants paying top-of-market rents to make development feasible in our current environment.