- What Calgary’s outer suburbs have seen leasing momentum surge in the past year, brokerage finds
- Why A growing population coupled with a lack of new space is driving demand
- What next The trend is expected to continue in 2024
Calgary’s suburbs saw a surge of retail leasing activity last year, and the pace is expected to continue to accelerate.
That’s according to data from Avison Young, which brokered 151 lease agreements in 2023. Demand is largely stemming from a combination of a 10-year low in construction, population growth and more people working from home has created more demand in the outer regions.
Hani Abdelkader, a principal in Avison Young’s retail group, told Green Street News that this is the most robust leasing environment in Calgary in 10 years. With 2024 off to a hot start, he expects the leasing surge to continue.
However, the boom is putting the pinch on prospective tenants. Suburban space for essential retail such as grocery stores, pet services, dollar stores and quick-service restaurants is seeing the strongest momentum.
“It’s really hard, especially if you’re in the most active size range,” he said. “Anything sub-2,000 sq ft, it’s really hard to find space.”
Avison Young completed the most leases last year in the northwest suburbs. That region, which includes communities like Creekside and the University District, accounted for 33.7% of activity. The southeast, including Seton and Mahogany, was a close second, at 30.6%. The northeast came in third, hitting 19.4%.
On the other end of the spectrum, the city’s beltline and downtown represented only 4.1% and 1% of leasing activity. Though the areas are experiencing a slower recovery rate, they also have more office space, Abdelkader said.