Muhammad Amanullah — September 12, 2026
Calgary’s rapidly growing population is driving an unusually strong demand for commercial and retail space in suburban areas, with vacancy rates for retail units in some parts of the city approaching zero.
According to a new report, Calgary’s suburban retail market has become one of the strongest in Canada as demand continues to rise for grocery stores, restaurants, food outlets and other businesses serving newly established residential communities.
Retail Businesses See Strong Growth
A new report by commercial real estate company CBRE shows that demand for retail space in Calgary’s suburban communities continues to increase.
Business owners are showing growing interest in establishing new stores in plazas and strip malls. As Calgary’s population expands, new residential communities are being developed, creating a need for local services and businesses to meet residents’ everyday needs.
Retail Vacancy Falls to Just 0.4 Per Cent
According to CBRE, Calgary and Saskatoon are among the two markets in Canada where suburban retail vacancy rates are extremely low.
The situation is particularly notable in southern Calgary. CBRE reported that the retail vacancy rate in the southern area extending to the Legacy community has fallen to just 0.4 per cent.
Alistair Corbett, CBRE’s senior vice-president of retail leasing, said a vacancy rate of 0.4 per cent can effectively be considered zero. He said finding suitable commercial space in the area has become extremely difficult.
Population Growth Brings New Businesses
Experts say retail businesses are increasingly following Calgary’s growing residential population into new communities.
A common principle in real estate is that retail follows population growth and residential development. As Calgary continues to expand and new communities are established, residents require grocery stores, daycare centres, restaurants and other essential services.
As a result, demand for commercial space is increasing alongside residential projects and mixed-use developments.
Strong Demand in Legacy
Legacy has emerged as one of the communities receiving particular attention as Calgary’s population and business activity continue to grow.
The immediate needs of new residents are creating demand for grocery stores, food outlets, childcare providers and other service businesses. However, limited availability means it is becoming increasingly difficult for business owners to secure their preferred locations.
Expansion Becoming More Difficult for Businesses
The shortage of available suburban retail space is also affecting expansion plans for businesses already operating in Calgary.
Mitch Turgeon, a franchise owner of Firehouse Subs, said the company spent a considerable amount of time searching for suitable locations for new Calgary outlets.
Turgeon is celebrating the opening of the company’s seventh Calgary location, which also marks the milestone of Firehouse Subs reaching its 200th overall location. He said the search for suitable new sites began about four years ago.
‘It’s Not About Rushing — It’s About Finding the Best Location’
Turgeon said that adding four new Calgary locations over seven years may not appear to represent rapid expansion, but the company has refused to accept a location simply because it was available.
According to Turgeon, selecting the right location is more important for the business, which means the process requires patience.
He said businesses need to be willing to wait for suitable commercial space because high-quality retail sites are not easily available.
Downtown Calgary Faces a Different Situation
While Calgary’s suburban retail market appears exceptionally strong, the situation in the city’s downtown core is considerably different.
According to the CBRE report, Calgary’s downtown area continues to have a relatively high vacancy rate for commercial buildings.
This highlights a clear difference between retail conditions in Calgary’s suburban communities and the downtown core. Population growth in suburban areas is generating new demand for businesses, while vacant space downtown indicates that commercial activity is not expanding at the same pace across all parts of the city.
Impact of Calgary’s Rapid Population Growth
Overall, Calgary’s rapid population growth is reshaping the city’s retail and commercial real estate sectors.
As new residential communities continue to emerge, the need for nearby commercial centres is also increasing.
Experts say that if Calgary’s population growth continues, demand for retail space in suburban communities could increase further. For developers, building new retail space—and for businesses, securing suitable locations—is likely to remain an important challenge in the years ahead.
