Edmonton’s retail real estate market is projected to outperform other major Canadian markets over the next five years, driven by strong employment and consumer spending growth, according to a new JLL report.

Retail leasing demand surged in 2024, with about 1.4 million square feet absorbed—the highest since 2018. General retail, strip, and neighbourhood centres led the way, particularly in South Edmonton. Leasing volume climbed 16% year-over-year and outpaced the five-year average by the same margin.

The availability rate declined by 50 basis points to 4%, while asking rents rose by nearly 6%—significantly higher than the national average. Despite a rise in supply, new construction starts remain below historical averages, tightening the market further.

National retailers are also expanding in the city. Walmart plans to open a new 140,000-sf store in the coming years at Heritage Valley Trail S.W. and Chappelle Road. Meanwhile, Edmonton’s malls are seeing growth in apparel and food offerings, with brands such as Manitobah and JD Sports opening in Southgate Centre, and Poulet Rouge and Beaver Tails arriving in West Edmonton Mall.

Downtown Edmonton, however, continues to face challenges from homelessness and low density, which have eroded its share of the municipal tax base. A $427-million plan backed by business groups proposes 19 specific improvements, including a potential airport rail link, to revitalize the area. Stakeholders remain cautiously optimistic, stressing the need for urgent action to attract investment, said JLL.

Despite possible headwinds—including slower population growth and the risk of new U.S. tariffs—Edmonton’s retail fundamentals remain strong, with population growth, higher real retail sales per capita, and rising rents supporting a positive outlook.

Photo: JLL