Downtown Edmonton’s retail landscape is undergoing a notable transformation, with a wave of new vacancies opening up even as commercial real estate firm CBRE points to signs of renewed business interest tied to ongoing revitalization efforts.
According to a new CBRE report covering the midpoint of the year, Edmonton’s downtown core is currently in flux. While the report flagged a number of notable vacant spaces, it also suggested that momentum is building thanks to revitalization initiatives already underway.
Matthew Hanson, a senior sales associate at CBRE, described Edmonton’s broader retail market as resilient and steady, but said the downtown core specifically is poised for significant change. Hanson said the volume of current vacancies downtown creates an opportunity for substantial shifts in the months ahead.
One project seen as central to that shift is the National Bank Centre, where a multimillion-dollar renovation of main-floor and second-floor retail space is nearing completion. CBRE’s report noted that revitalization efforts downtown remain in their early stages and will depend heavily on the completion of projects like this one to sustain momentum.
The report follows a summer marked by a steady stream of closures downtown, particularly among food and beverage businesses. Restaurants that recently shut their downtown doors include locally owned establishments such as Bündok and Khazana, along with small Edmonton-rooted chains including DONA’YA, KB&Co. and Greta.
Despite these closures, CBRE’s report said the restaurant sector overall continues to see low vacancy rates at high-performing centres across the country. Large fast-food chains have been able to absorb tighter profit margins and elevated labour and food costs, the report noted, while high construction costs are pushing more businesses toward acquiring and converting existing spaces rather than building new locations.
Hanson said that success downtown hinges on pairing the right tenant with the right location. He pointed to ACE Coffee’s downtown location as an example of a business that draws significant foot traffic with a strong product — the type of food-and-beverage operator CBRE looks for to add value to a building.
While downtown grapples with turnover, Edmonton’s suburban retail scene is faring differently. The report said strong population growth across the city is helping suburban retail thrive, with vacancy rates remaining low throughout those areas.
Hanson said retail spaces located near suburban grocery stores are being leased the fastest, benefiting from the consistent foot traffic generated by daily shoppers. He added that food and beverage businesses in the suburbs are experiencing considerably less turnover compared to their downtown counterparts.
The report also highlighted changes underway at some of the city’s shopping centres. Kingsway Mall, located in north-central Edmonton, recently came under new ownership by Montreal-based Westcliff Management. The company has indicated it plans to take a gradual approach and has no major changes planned for the property in the near term, while noting the mall remains a strong performer in the local market.
By contrast, City Centre Mall in the downtown core is set for more dramatic change under its new owner, Edmonton-based developer Westrich Pacific. The company plans to convert underused retail space at the site of the former Hudson’s Bay store into approximately 1,500 residential units. Westrich has also outlined plans to add a luxury rooftop Nordic spa, additional entertainment offerings, and street-facing retail space as part of the redevelopment.
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