Q1 2023: Calgary Office Market Report

The first quarter of 2023 experienced an increase in vacancy ending at 29.33 percent from 28.40 percent at the end of 2022. With the exception of the Class A market, vacancy fell for all other classes. The first quarter saw negative absorption of -376,614 square feet. The slight increase in overall vacancy can be explained by the addition of just over 500,000 square feet delivering this summer in Shell Centre due to Shell Canada relocating to The Bow. Market activity is mainly in the form of companies planning their future real estate needs. The challenge they face now is finding quality space to improve their current situation. Despite the high vacancy rate, much of the space available are larger pockets where landlords are not necessarily willing to demise unless the tenant is sizeable. Further, those looking for smaller pockets in the 4,000 6,000 square foot range and either move-in ready or only requires minimal work are hitting the proverbial wall.