Demand for retail space at an all-time high as Calgarians' income and spending grow

Demand for new retail space in Calgary has reached arecord high, says a new report by Colliers International.

In response to that demand, 50 projects comprising slightly more than 12.1 million square feet are in the planning, permitting or construction stage, according to the Calgary Retail Market Report Fall 2014.

Alberta, and Calgary in particular, has become the poster child market for affluence, consumer spending, employment growth, nation-leading incomes and abundant population growth all the necessary ingredients for a healthy and robust retail economy, said the report.

The continued demand for new high-quality retailers in Calgary is clearly demonstrated by the recent openings of two new large format retailers in the past six months.

Nordstrom opened at Chinook Centre while Marshalls opened in Kingsland Plaza.

The report said the overall vacancy rate of 1.81 per cent for retail shopping centres is driven by significant demand to target the high-earning Alberta population. Overall vacancy has dropped minimally by 0.11 per cent from last fall. Over the past five years, overall vacancy in Calgary has fluctuated by no more than 0.6 per cent.

As a result of the high demand, Calgary is experiencing citywide growth of mixed-use developments in all quadrants, said the report. The low vacancy rate is expected to continue as long as the economic prosperity continues.

Calgary will continue to be a bright light on the Canadian retail scene, while national and international retailers will continue to actively pursue locations and gain market share. Demand by major retailers for prime suburban and inner-city locations will exceed supply resulting in a highly competitive environment.

mtoneguzzi@calgaryherald.com

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Demand for retail space at an all-time high as Calgarians' income and spending grow