Calgary Office Market Report

Sector still sees improving demand. After net absorption turned positive in late 2022, upwards momentum has kept building. In the first quarter of 2025, net absorption exceeded 1.2 million square feet, marking the largest reading since the third quarter of 2014. This significant progress was largely driven by Calgary’s exceptional labour market, which has added nearly 140,000 new jobs since 2022. With virtually no new completions, the vacancy rate has been in free fall, reaching a nine-year low in the first three months of this year. Looking ahead, this trend is set to continue in the foreseeable future, though not without potential headwinds. In the near term, should trade tensions escalate or oil prices decline significantly, office demand could come under pressure. This may weigh on the current momentum and stall the progress made in reducing the vacancy rate.