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Market Report

Calgary Industrial Market Report

2Q 2023

Sector Fundamentals Benefit from Strong Demand
Outweighing Increasing New Supply

Robust demand drives Canada’s fastest-tightening market. Since the onset of the global health crisis, Calgary’s industrial market has grown at a rapid pace. Between 2021 and 2022, average annual net absorption jumped to 5 million square feet from roughly 2 million seen in pre-pandemic times, which outpaced the national average. Healthy macroeconomic performance, a significant rise in e-commerce and spillover from Vancouver all contributed to this swift increase in demand. Vacancy, as a result, dropped 450 basis points from 2019 to 2022, which was the fastest rate of tightening among all major metros in Canada. In 2023, elevated international oil prices, strong in-migration and the relatively affordable nature of Calgary are expected to continue to drive demand, despite a potential slowdown in economic growth. These factors will provide further momentum for Calgary’s industrial sector, causing double-digit rent growth to sustain.
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