Commercial Market Overview
Terwillegar is a prosperous southwest Edmonton neighbourhood whose commercial activity centres on the Rabbit Hill Road NW corridor and associated arterial retail nodes. The area serves an affluent residential catchment that includes Terwillegar Towne, Leger, Hodgson, Magrath Heights and the Windermere communities to the south — one of Edmonton's highest-income residential trade areas. Commercial assets here are predominantly neighbourhood retail plazas, professional and medical office buildings, and lifestyle fitness and wellness facilities serving the area's high-income demographic.
Terwillegar's commercial market is characterized by low vacancy, premium rents and stable national-tenant occupancy in grocery-anchored centres. The area competes for tenant demand with the South Edmonton Common power centre to the east and the Windermere node to the south, but benefits from strong population density and the "convenience-first" shopping behaviour of its residential catchment.
Key Commercial Corridors
Rabbit Hill Road NW between Terwillegar Drive and 23 Avenue is the primary commercial spine, featuring the Terwillegar Towne Centre anchored by Save-On-Foods, a Shoppers Drug Mart and a roster of national service retailers. Secondary commercial plazas appear along Terwillegar Drive NW at 23 Avenue and at the Hodgson and Magrath Heights neighbourhood commercial nodes. Professional and medical office buildings cluster near the Rabbit Hill Road/23 Avenue intersection.
Investment Drivers
Terwillegar's commercial investment fundamentals are among the strongest in southwest Edmonton. The area's high household income, growing population and location between major arterials (Anthony Henday Drive, Terwillegar Drive and Rabbit Hill Road) create a commercially active catchment that supports above-average retail sales density. Medical office demand is structurally undersupplied relative to the population, supporting consistent cap rate compression and strong owner-user demand. The continued development of Windermere and Chappelle to the south expands the overall SW Edmonton trade area, benefiting Terwillegar's established commercial nodes as a go-to destination for existing residents.
Development Pipeline
Development in the Terwillegar commercial node is focused on infill medical office and the addition of small-format retail pads within existing centres. A new 12,000 sf medical office building is under construction on Rabbit Hill Road near 23 Avenue, expected to open in late 2025. The Terwillegar Towne Centre completed a 2024 renovation that upgraded the tenant mix and improved the customer experience. Additional residential development in Magrath and Hodgson continues to grow the trade area population, supporting incremental commercial demand through 2030.