Calgary’s retail market is poised for a strong finish to 2025 as tenant demand remains quite strong, says a Barclay Street Real Estate report.

Total occupancy climbed 20 basis points quarter-over-quarter to 96.2% in the third quarter, while record low vacancy (3.7%) was virtually unchanged. Meanwhile, overall availability declined 90 bps year-over-year 3.8%, while falling 20 bps quarter-over-quarter.

“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,” said the brokerage.

According to Barclay Street, the market continues to show strength and resilience. Calgary remains below what is considered to be a balanced market, with less than two million square feet available citywide. Altogether, the retail inventory comprises 45.6 million sf, up 300,000 sf since the start of the year due to new project deliveries.

Record-low availability is fuelling upward pressure on rents as suburban nodes capitalize on the strong tenant demand. In addition, national chains are expanding in the city, local concepts are scaling up, and major redevelopment projects are reshaping urban nodes.

“Together, these dynamics position Calgary for a strong finish to 2025 and sustained momentum into 2026,” said Barclay Street.

The brokerage is getting in on the action by helping developers expand their retail presence. Barclay Street is co-ordinating leasing for Homes by Avi’s Sovereign mixed-use project. The company also facilitated the sale of retailer Mona Lisa Artists’ Materials.

Pictured; CF Chinook Centre mall in southwest Calgary.

Photo: Cadillac Fairview