Calgary Industrial Market Report

Space demand rising in a resilient economy. Calgary’s industrial sector delivered stronger-than-expected performance in 2025. Net absorption rebounded in the second half of the year after a brief slowdown in the first two quarters, driving the annual vacancy rate lower. This momentum carried into the first quarter of this year, as space demand once again outpaced completions, pushing vacancy to its lowest level since 2023. Supported by Calgary’s resilient economy, tenants have largely looked past trade-related uncertainty, fueling a broad-based recovery in leasing activity across all bay sizes. Moreover, major nation-building projects and the recent surge in oil prices stemming from the conflict in the Middle East are expected to bolster growth by boosting the energy sector, adding another layer of support to leasing momentum. With these demand drivers in place, net absorption is now projected to finish the year above earlier expectations, resulting in a lower vacancy rate than initially anticipated.