Commercial Real Estate Market of the Month: Calgary

Innovation, Logistics & Opportunity in 2025

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Calgary is evolving and fast. With its population set to reach 1.84 million in 2025, the city is solidifying its place as one of Canada’s most dynamic markets for commercial real estate. Driven by strategic infrastructure, forward-looking economic plans, and strong demand across asset classes, Calgary offers meaningful opportunity for tenants, developers, and investors alike.

Whether you’re navigating industrial leasing, reassessing office space, or exploring growth opportunities, now is a critical time to explore real estate in Calgary.

Calgary’s Commercial Real Estate Momentum

Several large-scale trends are converging to make Calgary a magnet for commercial growth:

• Population growth continues to support long-term real estate demand across asset types.
• The Prairie Economic Gateway (PEG) initiative is positioning Calgary as Canada’s strongest inland port, enhancing its attractiveness to logistics and industrial users.
• The City’s Economic Development strategy aims to make Calgary Canada’s innovation capital, bringing new life sciences, tech, and cleantech companies into the market.
• $1.2 billion in multifamily transactions were recorded in 2024, a 38% year-over-year increase, highlighting confidence in the city’s residential and mixed-use sectors.

For businesses and real estate decision-makers, the key isn’t just following the momentum, it’s aligning your real estate strategy with where the market is headed.

Industrial Market: Flexibility Over Footprint

Calgary’s industrial market remains one of the most competitive in Western Canada, but it’s entering a new phase. While the fundamentals are strong, supply constraints and changing tenant needs are reshaping the leasing landscape. If you’re exploring Calgary commercial real estate for lease, particularly in the industrial sector, securing the right size and location is key, and competition is growing.

• Assessment values rose 5% in 2025, reflecting healthy demand and limited supply.
• No new industrial supply was delivered in Q1 2025, further tightening the pipeline.
• While Calgary is actively working to incentivize more industrial development within its boundaries, much of the region’s recent growth has occurred in adjacent municipalities, particularly Rocky View County.
• Vacancy rates range from 3.8% to 5.9%, keeping Calgary among the most competitive industrial markets in Western Canada.
• Asking rents are up, now averaging between $11.00 and $13.00 per sq. ft. net.
• Tenant preferences are shifting: demand is now focused on smaller, flexible spaces, while large bay leasing has slowed.
• Businesses are adapting their logistics operations to be leaner and closer to key urban nodes.

What industrial tenants should consider:

• Plan ahead. With no new supply and tight vacancy, competition is growing. If your lease is coming up in the next 12–18 months, early action gives you more leverage.
• Size isn’t everything. Flexibility, location, and operational efficiency are now driving decisions more than square footage alone.
• Know your total cost. Rising assessments may not impact rent directly, but they do influence your full occupancy picture.

Office Market: Adapting to a New Era

Calgary’s office market is undergoing a bold reset, led by one of the most ambitious urban core revitalizations in the country. While vacancy remains elevated downtown, the City’s office-to-residential conversion program is reshaping availability and injecting new energy into the core.

Calgary Downtown Office:

• Over 2 million sq. ft. of office space is being converted to residential under the City of Calgary’s conversion incentive program — a major step in revitalizing the core and addressing housing needs.
• Sales activity in the downtown office market is increasing, with buyers eyeing repositioning and mixed-use redevelopment opportunities.
• Major landlords are actively acquiring assets. Oxford Properties took full ownership of three high-quality office buildings in Calgary as part of their recent $730 million portfolio deal.
• Vacancy remains elevated between 23.0% and 25.7%, but sentiment is shifting as creative reuse plans gain traction.

Suburban Office:

• The suburban office market in Calgary remains stable, with steady leasing activity.
• Demand continues to grow for flexible, cost-effective commercial office space for lease in Calgary, particularly in buildings with efficient layouts and accessible locations.
• Gross asking rents typically range from $15.50 to $17.50 per sq. ft., depending on asset class and location.

What office tenants should consider:

• Downtown users: don’t wait. As more space is converted, the opportunity to lock in quality downtown space may narrow.
• Look outside the core. Suburban options offer better value and increasing flexibility, especially for tenants who no longer need as much traditional office space.
• Design for hybrid. Flexible layouts and right-sized space are key to future-proofing your office footprint.

Why lease in Calgary?

With robust multifamily growth, a resilient industrial backbone, and a revitalizing office landscape, Calgary’s commercial real estate market is entering a new chapter of opportunity. The industrial sector is staying lean and in demand, the office market is reshaping itself in real time, and residential growth is surging. It’s a city on the move, setting the stage for long-term success. Commercial tenants who move with it will be best positioned to thrive.

Need the highlights at a glance?
Download the Market of the Month Cheat Sheet →

Looking to lease commercial real estate in Calgary? Our tenant-focused advisors are here to help you navigate the market with tailored insights and on-the-ground expertise.

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Our Market Intelligence team is committed to helping you stay ahead of the curve by identifying key trends that maximize both space and operational efficiency. With customized insights grounded in real-time data and extensive industry expertise, we ensure you’re equipped to make informed decisions in this competitive market.