Why Calgary has one of the hottest suburban retail rental markets in Canada
Posted Sep 11, 2026 2:56 pm.
Calgary’s suburban retail rental market is emerging as one of the strongest in the country, with some neighbourhoods reporting vacancy rates close to zero as population growth fuels demand for new commercial space.
A new report from commercial real estate firm CBRE highlights how suburban businesses,from grocery stores to food outlets in plazas and strip malls, are thriving.
Calgary and Saskatoon were the only two markets nationwide with very low suburban retail vacancy rates.
CBRE says Calgary’s rapid population growth is driving mixed‑use developments across the city. In communities like Legacy, vacancy rates are nearing zero as new residents create immediate demand for services.
Alistair Corbett, senior vice‑president of retail leasing for CBRE in Calgary, says the south end of the city is especially tight.
“The south section which is going to take you down to the Legacy area, that 0.4 per cent, that is functionally zero vacancy,” he says. “Good luck finding space down there, it’s very challenging.
“We say retail follows rooftops and that is what we are seeing here in Calgary as the city is growing and these new communities come on stream. They need services, they need the grocery stores and the daycares.”
That tight market has made expansion difficult for some businesses. Firehouse Subs franchisee Mitch Turgeon, who is celebrating his seventh Calgary location and the company’s 200th overall, says securing sites has been a long process.
“We started this process close to four years ago trying to find sites. Four locations over seven years isn’t exactly rapid growth, but we didn’t want to settle for anything other than great sites, but you need to be patient,” says Turgeon.
While suburban vacancy rates remain extremely low, CBRE notes Calgary’s downtown continues to face high vacancy levels.
