Market Report
Calgary Office Market Report
2025 Investment Forecast
Demand Tailwinds Maintain Vacancy
Decline Amid Supply Reduction Efforts
Vacancy rate to fall for the third consecutive year. Calgary’s office vacancy rate dropped by roughly 300 basis points in 2024, marking the fastest decline among major Canadian markets. Spillover effects from a healthy oil and gas sector, along with growth in non-oil office-using sectors – such as financial services, technology and education – drove a surge in leasing activity. Net absorption exceeded 2 million square feet as a result, reaching its highest annual level in more than a decade. Looking ahead to 2025, these demand drivers are likely to sustain downwards pressure on vacancy, especially with interest rates expected to decline further. The metro’s disciplined construction pipeline will also help improve sector fundamentals. Moreover, Calgary relaunched its Downtown Development Incentive Program in September last year after the metro secured funding from the federal government. Eligible projects will receive up to $75 per square foot of office space for conversion, up to a maximum of $15 million per project. This program will continue to revitalize the downtown core while also removing obsolete office stock and addressing the critical need for more housing.
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