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If you're a business owner in Calgary, whether you're leasing your first space, expanding, or thinking about purchasing, the commercial real estate market right now is one of the most important factors shaping your costs and options. Understanding the broader landscape isn't just for investors. It directly affects what you pay, what's available, and where your best opportunities are.
This is the first of our quarterly commercial real estate market updates, designed specifically for entrepreneurs and business owners who want to stay informed and make smarter decisions about their space.
Calgary Retail Market: Healthier Than the Headlines Suggest
What is retail real estate?
These are properties used for the sale of goods and services directly to consumers, think storefronts, plazas, strip malls, and shopping centres.
The big picture: Calgary's retail scene is in good shape, despite some eye-catching numbers.
What's behind the vacancy spike?
You may have seen headlines about rising empty storefronts: that's almost entirely due to Hudson's Bay closures. Those big stores left behind nearly 1 million square feet of empty space. Take those out of the equation, and the real vacancy rate is actually very low, around 3.4%. In other words, space is still tight and demand is strong.
Where is retail doing well?
Grocery-anchored plazas, neighbourhood strip malls, and power centres (like big-box anchored strips) are performing the best, especially in Calgary's growing suburbs, where new residents need everyday essentials like groceries, pharmacies, and services.
Is new space being built?
Not much. Construction is still well below historical norms. Some developers are starting to respond to demand, but new supply is coming slowly, which means competition for good spaces remains high.
What does this mean for small business owners?
- Good space is getting harder to find and more expensive. Rents are up, and competition for prime locations is real. If you have a strong location, that's a genuine asset. Landlords and other retailers are actively seeking proven spots with good visibility and growing neighbourhoods around them.
- Costs are rising across the board: rent, labour, and build-out costs are all up.
- Suburban and neighbourhood retail is the sweet spot. Growing communities need everyday services, and grocery-anchored suburban centres are among the best-performing assets in the entire market.
- New supply is limited. Not much new space is being built. If you're in a solid location, hold onto it.
Bottom line: Calgary's retail market is healthier than the headlines suggest. If you're looking to lease or expand, expect competition for prime spots. The customer base is growing, which is good news for local businesses.
Calgary Office Market: A Tale of Two Cities
What is office real estate?
These are properties designed primarily for business, professional, or administrative use, from downtown towers to suburban professional buildings.
The big picture: Calgary's office market is really a tale of two cities: downtown is still struggling, while the suburbs are thriving.
What's happening downtown?
Vacancy downtown is sitting at around 30%, meaning roughly 1 in 3 offices is empty. This is largely due to energy companies right-sizing, merging, or simply needing less space. On the bright side, some of those empty older buildings are being converted into housing or other uses, which is slowly helping clean up the market. The best, most modern downtown buildings are still doing well. The companies that are leasing want quality spaces that make employees actually want to come in.
What's happening in the suburbs?
The suburban office market is having its best run in years. Businesses tied to Calgary's growing population, and healthcare, education, childcare, construction, and other local services, are all expanding and snapping up space. It's the strongest stretch of demand since 2018.
Why the divide?
People want to work closer to home. Suburban offices offer convenience and accessibility that a downtown tower simply can't match for a lot of workers and small businesses.
What does this mean for small business owners?
- Suburban office space is in demand. If you're looking, act decisively as good spots are going quickly.
- Downtown has deals to be found. High vacancy means more negotiating power for tenants willing to locate there.
- Quality matters. Even downtown, modern and well-amenitied spaces are leasing. Tired, older spaces are being left behind.
- The shift toward convenience is real. Being close to where your customers and employees live is increasingly valuable.
Bottom line: Where you are matters more than ever. Suburban is the growth story right now, but downtown still offers opportunity for those who know where to look.
Calgary Industrial Market: Move Fast or Miss Out
What is industrial real estate?
Properties used for manufacturing, warehousing, storage, and distribution, including everything from large logistics facilities to small service bays.
The big picture: Calgary's industrial market is one of the strongest in the country, particularly for small spaces. Overall vacancy sits at just 4.0%, and for spaces with bays under 5,000 square feet, demand is significantly outpacing supply, with developers racing to keep up.
What's the vacancy situation?
Vacancy is sitting at a low 4.0%, meaning there isn't a lot of available space out there. And for smaller spaces under 5,000 square feet (think workshop, warehouse, or service bays) demand is far outstripping what's available. If you need small industrial space, competition is real.
What's driving demand?
Calgary's growing population is the engine behind much of this. Logistics, distribution, and service-based businesses are all expanding to serve more residents. Big development projects are also underway in Balzac and the Southeast corridor, signaling long-term confidence in Calgary's industrial sector.
Is new space being built?
Yes, nearly 4.7 million square feet is currently under construction, and developers are ramping up activity in response to tight inventory. Importantly, a lot of this space is already being pre-leased before it's even built, which speaks to how confident businesses are in Calgary's growth story.
What does this mean for small business owners?
- Small industrial space is especially hard to find. If you need it, move quickly as it gets snapped up fast.
- Rents are unlikely to drop anytime soon. Low vacancy and strong demand keep pricing firm.
- If you're in industrial space already, your position is valuable. Don't take a good lease for granted.
- New supply is coming, but slowly. Relief is on the way, but it won't happen overnight.
Bottom line: Calgary's industrial market is one of the tightest in the country for small-bay users. If finding or securing space is on your radar, sooner is better than later.
Calgary Commercial Investment Market: Selective, But Active
What are investments in commercial real estate?
This is your opportunity to own commercial space, become a landlord, or purchase land, building long-term wealth through property ownership rather than leasing.
Calgary's investment market is active but disciplined. Investors are still buying, but they're being selective, prioritizing quality assets, reliable income, and strong tenancy over speculative plays.
Key numbers to know:
- Cap rates (the return you'd expect on a property) have stabilized nationally around 6.61%
- What's happening with interest rates? The Bank of Canada held its rate at 2.25% in late April 2026, which is relatively good news, but they've signalled that inflation and energy price swings could limit further cuts. Borrowing is more manageable than it was, but financing is still a key hurdle for many deals.
- Calgary is stacking up quite well compared to other Canadian markets.
- The city saw $3.8 billion in commercial real estate investment through Q3 2025, up year-over-year, a sign that outside money still sees Calgary as a solid bet
- The city is forecast to grow 2.4% in 2026, backed by population growth, infrastructure, and energy production
What this means for investors:
- Industrial, grocery-anchored retail, and essential-service assets are attracting the strongest buyer interest right now.
- Office remains a case-by-case story. Quality and tenancy matter enormously; with suburban office being the most desirable office assets.
- Calgary's growth fundamentals remain compelling for those buying in the right locations with the right tenants.
What are investors actually buying? Investors are focused on assets that offer predictable income and long-term stability. The most sought-after properties right now are industrial, grocery-anchored retail, and essential-service or suburban office. Office is still being looked at, but only on a building-by-building basis where quality and tenancy are strong.
The Bottom Line for Calgary Business Owners
The Calgary commercial real estate market in 2026 is full of opportunity, but it's not one-size-fits-all. Here's the short version:
- Industrial tenants may still face tight conditions and should act quickly when good space becomes available.
- Office tenants, particularly those open to downtown, may have significantly more negotiating leverage than they realize.
- Retail users should be thoughtful and strategic, because the best spaces still move quickly when the fundamentals are right.
- Investors should focus on quality, location, and income certainty over chasing deals.
Work With Us
A major part of what we do at NuSpruce is help business owners find, lease, or purchase commercial spaces at the best possible rates. Whether you're a first-time tenant, an expanding business, or a prospective investor, we'd love to help you navigate this market.
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NuSpruce publishes quarterly commercial real estate market updates for Calgary business owners and entrepreneurs. Have questions about your specific situation? We'd love to hear from you.
