Calgary’s retail real estate sector continues to demonstrate resilience and momentum, says a new report from Barclay Street.

The city’s retail real estate market remained one of Canada’s strongest in the second quarter, with overall occupancy holding at 97.0% and vacancy staying near historic lows as luxury retailers, restaurants and U.S. brands continued to expand into the city.

Barclay Street second-quarter retail market report said overall headlease vacancy edged up to 3% from 2.9% in the previous quarter, while overall availability remained steady at 3.1%, reflecting continued tight market conditions across most of Calgary.

The report highlighted Hermès’ decision to open its first standalone Alberta boutique at 407 8th Ave. S.W. in 2027 as the quarter’s marquee transaction. The downtown flagship will make Calgary one of only four Canadian cities with a standalone Hermès store, joining Toronto, Montreal and Vancouver. Barclay Street executive vice-president Bill Falagaris brokered the lease. Most of Canada’s Hermès locations deploy a store-within-a-store concept in Holt Renfrew outlets.

The report also noted that, as Connect has reported, Foodtastic has secured the Dunkin’ brand for Canadian expansion, adding to strong demand from quick-service restaurant operators.

Power shopping centres and enclosed shopping centres remained effectively full, each posting 0.1% vacancy. Community shopping centres, which account for 29% of Calgary’s retail inventory, recorded a 2.4% vacancy rate, supported by restaurant and daycare demand. Street-front retail vacancy improved by 60 basis points to 6.8%, despite new supply along Stephen Avenue and in the Beltline.

Southeast Calgary led the market with vacancy falling to 1.7%, while northwest Calgary improved to 1.8%. Downtown vacancy rose slightly to 9%, with the report identifying Astra Real Estate Corp.’s acquisition of the former Hudson’s Bay Company department store building as a redevelopment opportunity to watch.

“Calgary is finally seeing the boom it deserves,” said Joshua Gill, a Barclay Street senior associate, in the report. Multiple U.S. brands are opening several locations here, some debuting concepts not yet seen in any other market — a first for Canada, and a clear signal of how strong this retail market has become.”

Looking ahead, Barclay Street said Calgary’s retail market is entering the second half of 2026 with “genuine momentum,” citing the Hermès announcement, continued population growth, expanding quick-service restaurant and experiential retail concepts, and healthy preleasing of new mixed-use and community retail developments.

Pictured: Retail properteis in downtown Calgary.

Photo: Courtesy of Barclay Street