While downtown Calgary struggles with an office vacancy rate nearing 30 per cent, a unique "campus" development in the heart of the Beltline is seeing success.

Dear Santa,

My oh my, it certainly has been an interesting and challenging year, with the COVID-19 pandemic impacting almost every part of our lives.

The Tsuut'ina Nation is developing Calgary's latest power retail centre with the Shops at Buffalo Run, which will feature the region's newest Costco store – the first ever location for the retail giant on First Nation land in Canada.

The health of Calgary's commercial real estate market is often defined by what's happening with the city's downtown office space, but it doesn't tell the whole story.

The redevelopment of the East Village has brought new life to an area that was once a no man's land of unsightly industrial buildings and decaying historic landmarks.

An influx of new residents has breathed life into the area, but as modern condo towers rose and filled up with buyers, one thing was lacking: rental options.

The redevelopment of the East Village has brought new life to an area that was once a no man's land of unsightly industrial buildings and decaying historic landmarks.

An influx of new residents has breathed life into the area, but as modern condo towers rose and filled up with buyers, one thing was lacking: rental options.

The construction machinery sprawled across a whole city block in Calgary's East Village tells a retail success story.

The 5th and Third development (named for its location at Fifth Avenue and Third Street S.E.) is being constructed and leased by RioCan. The project is two-thirds of the way towards completion and on schedule to open in 2020, says Terri Andrianopoulos, RioCan's national vice-president of marketing and communications.

The holidays are just around the corner, and what better way to kick off the season then a visit to one of Calgary's trendy, inner-city neighbourhoods to stroll through a collection of locally owned ateliers, art galleries and vintage stores.

According to Calgary business improvement associations (BIAs), local shopping is expected to be popular this year, and retailers in inner-city shopping districts are primed for an influx of visitors.

Calgary retailers making the most of high vacancy rate

Calgary commercial experts say local retailers are becoming increasingly savvy in their fight for market share, challenging the traditional brick-and-mortar concept of doing business in favour of a pop-up model.

''I do think the trend is becoming more popular because of online shopping," said Barclay Street Real Estate retail associate Amy McGregor, who is working with Calgary Economic Development to research pop-up shops and facilitate a process for new business owners by connecting with landlords.

"Online retailers kind of want to dip their toe in the retail market and it's a low investment way to do that. There's more opportunity and more likelihood that landlords will give them the opportunity for the shorter-term leases."

Real estate officials expect conditions to support turnaround in downtrodden commercial market

Calgary's commercial real estate market is showing signs it is finally moving on from tough economic conditions that sent vacancy rates soaring and rents plummeting over the past two years, say officials.

''There is a sense in the market that the worst is behind us and that conditions will gradually improve," said Joe Binfet, managing director/broker of Colliers International in Calgary.