Have you ever wondered what’s really driving the shift in the commercial real-estate landscape in Calgary in 2025?

If you’re an investor, a business owner looking for space, a developer keeping an eye on opportunities—or simply someone curious about how our city’s business infrastructure is changing—then you’re in the right place. Because in this post I’m going to walk you through the key commercial-real-estate trends in Calgary in 2025, show you what’s hot (and what’s not), and give you actionable insights you can use—whether you’re looking to buy, lease, or develop. By the end of this blog, you’ll have a clearer picture of where things are heading, and how you can position yourself to gain an edge in the Calgary commercial-property market.

Why the Calgary commercial real estate trends matter now

Calgary—known for its oil & gas roots—has been undergoing a metamorphosis. With the economy diversifying into tech, logistics, renewable energy, and data-centres, the commercial real estate in Calgary is evolving. According to recent data:

• The city’s non-residential assessment values show industrial property increases of about 5 % in 2025, offices up about 2 %, and retail up roughly 2 %.
• Investment volumes in Q1 2025 in Calgary hit over $1.2 billion—an uptick of ~14 % year-over-year.
• Big shifts in how space is used: office‐to‐residential conversions, industrial demand rising, retail re-thinking its format.

So if you’re asking, “Should I care about the Calgary commercial property market 2025?” — the answer is yes, absolutely. These are not small ripples—they’re waves. And if you can ride one wisely, there’s real advantage to be gained.

The big three sectors – industrial, office, retail – and what’s happening in each

Now let’s break it down by asset class. Because the commercial real estate in Calgary is far from monolithic—each segment is moving in its own rhythm.

Industrial real estate in Calgary – the star of 2025

If I had to pick one sector that’s getting the most attention in Calgary right now, it’s industrial. The keywords Calgary industrial real estate trends are ringing loud.

Here’s what the data & market-watchers tell us:

• Calgary is being positioned as a logistics and distribution hub for Western Canada.
• Vacancy rates in Q3 2025 for industrial product hovered around ~5.6 % in some areas.
• Investors and tenants are chasing space with high clear-heights, 24-7 access, smart loading docks. (As noted in a Calgary-local market article.)

Why this matters:

• With e-commerce growth, the need for warehousing, distribution centres and cold-storage is growing.
• Calgary’s geographic advantage: major highways, rail lines, proximity to U.S. border = logistic play.
• The supply is still tight in many sub-markets which gives landlords negotiating power.

Quick bullet list of opportunities & risks:

• Acquire or lease industrial space in growth corridors (Balzac, Shepard Industrial).
• Look into automation-ready facilities—smart warehouses.
• Consider cold-storage or data-centre adjacency.
• New supply could hit and soften rents if overbuilt.
• Financing & interest-rate risk still exist (cost of capital is a thing).
• Location matters hugely—marginal sites may underperform.

Office real estate in Calgary – evolving, not extinct

Let’s talk about the office sector. It’s tempting to write it off, but in Calgary the picture is nuanced. When we speak about Calgary office real estate trends, it’s more about adaptation than collapse.

Key points:

• Availability rate in Q1 2025 was about 20.7 % for office space in the downtown.
• Conversion of older office buildings into residential is underway (adaptive reuse) — freeing up supply and removing under-performing stock.
• Tenants are being more selective; they want quality space (Class A), flexibility, locations with amenities.

What this means for you:

• If you’re investing in office, avoid the outdated, high-vacancy buildings. Focus on premium product.
• If you’re leasing, ask for flexible terms, future-proof amenities (hybrid-work ready).
• Mixed use is increasing (office + retail + residential) especially in revitalised downtown districts—so location matters.

Opportunities

• Retail in high-pedestrian zones (inner city, trendy districts) can yield value.
• Retail embedded in mixed-use developments (office + residential above) is increasingly attractive.

Cautions

• Big suburban malls without adaptation may struggle.
• Consumer behaviour keeps shifting online—physical retail must offer something unique.

What’s driving the Calgary commercial property market 2025?

We’ve talked about what’s happening. Now let’s dig into why it’s happening. Understanding the drivers gives you the power to anticipate what comes next.

Economic diversification & population growth

For years Calgary’s economy leaned heavily on oil & gas. But in recent years the city has made concerted efforts to diversify—into sectors like tech, healthcare, logistics, data centres.

Simultaneously, Calgary is benefiting from inter-provincial migration and in-migration: more people = more demand for commercial space (offices, warehouses, retail).

Cost of capital and investment sentiment

On the national level, Canada’s commercial real estate outlook for 2025 indicates that as cost of capital eases, investment activity picks up.

In Calgary specifically, after a cautious start, deal flow is picking up.

Shift in usage & consumer behaviour

The way people work, shop, and live is changing: hybrid-work models, e-commerce demand, preferences for experience over standard retail—all of this feeds into commercial real-estate trends.

Location, supply constraints & infrastructure

Calgary’s industrial real-estate story is in large part about location: access to rail/highways, being a distribution hub. In offices and retail, supply constraints (or removal of obsolete stock) are helping stabilise markets.

For example: the city’s incentive programmes for office-to-residential conversion remove older office stock.

Where to look for investment opportunities in Calgary commercial real estate

Alright, now you’re probably asking: “Okay Jai, show me the sweet spots.” Good question. Here’s where I’m seeing the most interesting opportunities in Calgary for 2025.

Target asset classes

• Industrial assets: Especially in locations like Balzac, Shepard Industrial Park, and other logistics-friendly zones. Low vacancy, high demand.
• Class A office in prime downtown or high-amenity suburban campuses: Because the flight-to-quality means older offices are being left behind.
• Mixed-use retail + hospitality + experience zones: Especially in areas where the urban vibe is strong (inner city, walkable neighbourhoods).

Sub-markets & locations to consider

• In the industrial realm: eastern and northern outskirts of Calgary; logistics corridors.
• For offices: downtown-west, Beltline, or suburban corporate campuses with transit/accessibility.
• Retail: neighbourhood nodes in Calgary such as Inglewood, 17th Avenue SW, Kensington (high pedestrian traffic). From the RE/MAX report: these areas command top dollar and have low vacancies.

Investment-criteria checklist

When you’re evaluating a commercial property, ask:

• What is the vacancy rate and trend for this asset in this sub-market?
• Are lease terms in line with current market (flexibility, quality)?
• Does the location have structural advantages (transit, logistics, population growth)?
• What is the tenant mix and how future-proof is it (e.g., specialized-use vs generic)?
• Are there upcoming infrastructure or zoning changes that could impact value?
• Are we locking in at a good cost of capital—what are financing assumptions?

Challenges & headwinds to watch in the Calgary commercial-property space

No market is perfect. Recognising the risks keeps you sharp—and wins come from heading off the pitfalls before they bite.

Over-supply risk in certain segments

While industrial is hot, new supply is coming. If too much enters the market too quickly, rental rates or valuations could soften. For example, some industrial availability rates edged upward in Q1 2025.

Interest rates & financing cost

Even though cost of capital is easing compared to the extremes, rising rates still impact leverage and returns. One mis‐step in financing assumptions can change the return profile significantly.

Tenant behaviour & hybrid work

In office especially, tenants are cautious — space needs are changing. It’s not necessarily going back to old-school 9-to-5 in a cubicle for everyone. Buildings without flexibility or modern amenities may struggle.

Regulatory/infrastructure delays

Especially for specialized uses (data centres, high-tech industrial), zoning, power supply, infrastructure can create bottlenecks. Cal for example: the project for data centres comes with 18-24 month grid approval timeline.

Macro-economic/global risks

Global uncertainties (commodity prices, trade tensions, migration flows) still matter. Calgary is influenced by both its domestic and global economic ties. As one forecast noted: “inflation is still a primary concern in the short term.”

How to read the tea-leaves for Calgary commercial real estate trends 2025 and beyond

Let’s take a few moments to look at some forward-looking indicators—so you can anticipate what might be coming next in the Calgary commercial real estate trends.

• Industrial vacancy is still relatively low but showing signs of upward pressure. This means rental growth may moderate—so now might be the time to lock in.
• Office availability though high is improving slowly. The pace of recovery may be gradual; it’s less a boom than a steady climb.
• Retail will continue to evolve rather than just grow—experience-led formats, neighbourhood-centric retail will outperform.
• Data-centre, technology infrastructure, logistics hubs are emerging growth engines and may be “second derivative” plays (you may not be first mover, but reputation and location matter).
• Infrastructure projects (for example transit, logistics hubs) will influence value—stay attuned to city-led changes (zoning, incentives, conversion programs).
• Investor behaviour: as capital becomes more selective, properties with strong fundamentals will see premium valuations; those with legacy issues (poor location, lease backlog, outdated infrastructure) may lag.

Why you should trust me (and why Calgary matters)

I’m Jai Chaudhary, and at Jai Chaudhary Real Estate we’ve been watching Calgary’s commercial property market for years. I’ve seen the peaks, the troughs, and now I’m helping clients navigate what I believe is one of the more interesting chapters in our city’s commercial-real-estate history.

Calgary matters because:

• It’s not just energy anymore—it’s diversifying, so commercial property is getting broader tailwinds.
• It has the geography and infrastructure to play a major role in Western Canada’s logistics and distribution story.
• The market is at a pivot point—if you get in with the right eyes open, there’s upside.
• There’s still less competition than some of the bigger Canadian markets (Toronto, Vancouver), which means you may have more room to manoeuvre.

So when you engage with me, you’re not just getting a property agent—you’re getting someone who reads the trends, asks the tough questions, and wants to get you into the right space at the right time.

We’ve taken a fairly deep dive into the Calgary commercial real estate trends for 2025: industrial strength, office adaptation, retail reinvention, and a city that’s shifting gears. Here’s what I’d suggest you do next:

• If you’re an investor: pick 2-3 asset types or sub-markets in Calgary you believe in and dig into them now.
• If you’re a tenant or business looking for space: define your “future-proof” needs (location, flexibility, technology) and let’s find something that meets them.
• If you’re a developer or looking at land: examine zoning, infrastructure plans, and how mixed-use or industrial uses could play out.
• Keep an eye on key metrics: vacancy rates, transit/infrastructure developments, new supply pipelines, cost of capital.
• Don’t assume “the old model” will work unaltered. The world of commercial real estate is changing—adaptation is the currency.

If you read this blog all the way through, I promise you’ll walk away with a sharper understanding of where the Calgary commercial-property market stands, where it’s going, and how you can position yourself to benefit from the shifts.

If you’d like to dig deeper—let’s schedule a chat. I’ll walk you through specific opportunities, numbers, and tailor a strategy for your particular goals in Calgary’s evolving commercial-property market.