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Market Report

Calgary Industrial Market Report

4Q 2023

Future Growth Potential and Ongoing Population
Expansion Paint a Positive Long-Term Outlook

Key metrics point to substantial runway for growth. When compared to 2019, Calgary’s industrial vacancy rate has contracted 370 basis points as of the third quarter — the largest drop among Canada’s major metros. Despite this robust demand, asking rents sat roughly 15 per cent below the national average and 35 per cent below Vancouver. As a result, many investors see Calgary as a potential growth market with future upside rent prospects. Given these below-average rents, coupled with historic population growth, the region is attracting many tenants priced out of Vancouver. Combined with Calgary’s relatively easy access to Canada’s largest shipping ports in British Columbia, the metro is becoming a distribution hub for Western Canada. With population growth forecast to eclipse last year’s historic level, logistics and e-commerce space demand should be well-supported. This may cap upward pressure on vacancy rates, causing investor and tenant sentiment to remain positive.
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