The Calgary retail market through the first three-quarters of the year continues to demonstrate both continuing growth and strong optimism, says a new report by Colliers International.
The overall vacancy rate for Calgary remains relatively unchanged at a mere 1.92 per cent, one of the lowest vacancy rates in North America. And Colliers said it is expecting overall vacancy levels to reduce to 1.75 per cent by mid-year 2014, which will put upward pressure on rental rates throughout the market.
“Calgary is a growing city with a thriving economy,” said Krystyn Gatto, an associate specializing in retail leasing for Colliers in Calgary.
“The city has experienced a strong and consistent population growth pattern that should continue for the foreseeable future. This growth coupled with high disposable incomes and our propensity to spend makes Calgary a ripe retail market. Calgary consumers have international brand recognition making our market a natural fit for retailers that have not yet arrived. Further, our Alberta entrepreneurialism can be seen in the spawning of new local concepts. Many Calgarians are not only happy to see these new ideas, but are now seeking them out.”
The Colliers report said home grown as well as international retailers have recognized the strong market fundamentals of the Calgary market and the influx of new retailing formats is expected to continue well into the future.
“To address the continuing expansion of existing retailers, developers have proposed an unprecedented number of new projects for Calgary, many in mixed-use format in the inner city,” it said.
“To match the ever-increasing consumer demand for retail goods and services in Calgary, retailers continue to seek quality sites and projects throughout all quadrants of Calgary. In response to this demand, developers have under construction or proposed an unprecedented 51 retail projects totaling over 13.2 million square feet of new projects throughout the Calgary marketplace.”