Q1 2023: Calgary Industrial Market Report

For the past three years, the Calgary industrial market has considerably tightened. Vacancy rates have dropped from over 7.4 percent in 2020 to 2.52 percent to end the first quarter. Although Calgary’s rates have seen upward pressure through this period, larger users are focusing more interest on Calgary as a less expensive option compared to Vancouver, Toronto, and Montreal. This trend will likely continue as rents can be 20 40 percent less expensive in the Calgary area versus these other markets. Developers continue to build on spec, and there are numerous large multi-building projects coming online in late 2023 and into 2024, with many projects expected to be pre-leased or have a significant percentage leased prior to completion.