Supply robustness helped remove some of the volatility in the market
Edmonton’s retail market vacancy recently exhibited the most dramatic decrease since the pandemic began in Q1 2020, reaching approximately 4.5% in the third quarter of this year, according to Avison Young.
This was a significant drop from the roughly 5.2% reading in Q2.
“The pandemic forced evolution on to retailers, but government support mitigated the immediate impacts of evaporating demand,” Avison Young said. “Small businesses that struggled the most may finally be closing, whereas groups or startups who used the pandemic as an incubator are beginning to enter the market.”
Read more: How is the Edmonton commercial segment faring so far this year?
Supply robustness helped remove some of the volatility in the market.
“Retail inventory in Edmonton has stabilized with the smallest observed quarter-over-quarter increase since 2016,” Avison Young added. “Over the past 12 months … in-person shopping has overtaken the frequency of delivery vehicles at geo-marked, last-mile distribution centres in the city.”
An overall surge in additional spending continues to spur the sector.
“Retail spending in Alberta has exceeded pre-pandemic levels and continues to climb,” Avison Young said. “Inflation certainly plays a role in this; however, it is clear that demand for tourism and travel, clothing for work or play, and recreational activities are being prioritized after years without.”
