Edmonton retail insight

• About 1.4 million s.f. were absorbed in 2024 ─ the highest since 2018, with greater net absorption in general retail and strip and neighbourhood centres. Construction starts remain lower than the historical average, which continues to tighten the market.

• The availability rate declined by 50 basis points to 4.0 percent, and asking rents surged by almost 6 percent, far higher than the national average.

• About 1.4 million s.f. of leases were signed in 2024, 16 percent more than in 2023 and 16 percent higher than five-year average.

Demand for retail space strengthened in 2024, with general retail and strip and neighbourhood centres the biggest contributors. South Edmonton stands out as the biggest absorber. Demand continues to outpace supply, with available space declining in several property types. The 2024 availability rate declined 50 basis points to 4.0 percent.

Asking rent growth has accelerated to almost 6 percent ─ higher than any other major Canadian market. Leasing volume increased by 16 percent, remaining above historical levels. Supply increased in 2024, but construction starts remain below the historical average.

As part of a recently announced $6.5 billion nationwide investment, Walmart will open a new 140,000 s.f. location in the next few years at Heritage Valley Trail SW and Chappelle Road. In addition, Edmonton’s malls are seeing a push in apparel & accessories and dining, with Manitobah and JD Sports in Southgate Centre, and Poulet Rouge and Beaver Tails in West Edmonton Mall.

Downtown Edmonton is facing issues of homelessness and low density, with its contribution to the municipal tax base dropping. However, a coalition of business organizations has proposed a $427 million investment plan targeting 19 specific improvements to revitalize the area, including a potential airport rail link. There’s cautious optimism about the future of downtown, with stakeholders emphasizing the need for swift action to attract investment.

Edmonton’s retail leasing market is strong as asking rent growth surges and available space becomes scarcer due to lower construction starts, increases in real retail sales per capita, and record population growth. However, headwinds such as slower population growth and potential U.S. tariffs might limit its growth. Edmonton is expected to outpace most Canadian markets over the next five years due to robust employment and spending growth.