Thinking about diving into commercial real estate in Calgary this year? As your trusted advisor, I’m here to walk you through why now might be the perfect time to invest in commercial properties in Calgary — and what it will take to make that move smart. By the end of this article, you’ll understand the major trends driving investment in Calgary’s commercial property market, know which sectors are hot (and which to watch carefully), and have practical next-steps to position yourself for success in 2025.

Why Investing in Commercial Properties in Calgary Matters in 2025

When we talk about investing in Calgary commercial properties, it’s not just about buying a building and collecting rent. It’s about tapping into a city undergoing real transformation — and you want to be positioned on the right side of that change.

Here’s what makes Calgary commercial real estate in 2025 particularly compelling:

• Calgary’s total investment activity in the commercial sector topped roughly $1.2 billion in Q1 2025, representing a 14% increase compared to the same period last year.
• The city is transitioning from being purely an oil & gas town to a more diversified economy, with tech, logistics, renewable energy, and services playing larger roles.
• Compared to major Canadian hubs like Toronto or Vancouver, Calgary still offers better value per square foot in many commercial segments.

What does that mean for you as an investor? It means there’s both opportunity and movement. If you pick well, you could see stronger returns; if you’re late to the game or pick the wrong asset class, you may face headwinds.

The Big 3 – Retail, Industrial & Office Commercial Properties in Calgary

Let’s zoom in on the three major categories of commercial investment in Calgary for 2025: retail, industrial, and office. Understanding the distinctions is key because one size definitely does not fit all.

Retail Property Investment in Calgary

If you’re looking at commercial properties in Calgary within the retail domain, here’s the landscape:

• Retail investment in Q1 2025 recorded about $207 million in transaction volume, representing a slight decline (-5%) — so not all sectors are in full throttle. 
• But importantly: tenant demand is shifting. Instead of large anchor big-box stores, the market favours experiential retail, lifestyle-oriented plazas in suburban markets, and local services.
• Suburban growth in communities such as Seton, Evanston and others is driving retail space demand.

Investor take-aways for retail in Calgary:

• Look for smaller retail plazas in growth suburbs, not just downtown malls.

• Consider property types that serve daily life (e.g., groceries, pet-services, boutique fitness) rather than purely luxury retail.

• Be cautious about large-scale anchor dependencies if the anchor tenant is under pressure.

• Evaluate demographic trends: population growth, family income, suburb expansion.

Industrial Property Investment in Calgary

This is arguably the stand-out category for 2025 when we talk about investing in Calgary commercial properties.

• The industrial sector remains very strong in Calgary, with factors like e-commerce, warehousing, logistics, cold-storage and transportation corridors playing into its favour.
• Calgary’s geography helps: proximity to major highways, access to U.S. border, and affordability compared to other markets all support growth.
• According to recent reporting: while there is some cooling (as supply catches up with demand), vacancy rates remain low and the fundamentals are solid.

Investor take-aways for industrial in Calgary:

• Target high-demand corridors (near transportation hubs, major highways).

• Consider niche uses: cold-storage, distribution, flex-space (office + warehouse combo).

• Understand lease terms: long-term leases with good tenants are key for stable income.

• Be aware of supply risk: if speculative development overshoots demand, there could be softness.

Office Property Investment in Calgary

Office space in Calgary has faced challenges—but also presents interesting turnaround opportunities.

• The downtown office vacancy rate in early 2025 reached nearly 29.9%, up from 28.3% previously.
• At the same time, rental rates for high-quality space increased from ~$12.32 to ~$13.01 per square foot, indicating that premium product is still in demand.
• Many older office buildings are being converted (or considered for conversion) into residential/mixed-use, indicating that the market is shifting in how space is used.

Investor take-aways for office in Calgary:

• Focus on Class A, well-located properties with strong amenities and flexibility for hybrid work models.

• Explore suburban office markets where vacancy is lower and cost per square foot may be more attractive.

• Be cautious of generic older towers downtown with high vacancy and weak tenant demand.

• Mixed-use and conversion opportunities may offer creative returns.

Key Drivers Behind Calgary’s Commercial Real Estate Momentum

Let’s unpack why Calgary is in the position it is in, because the underlying drivers determine both risk and opportunity.

• Population growth & migration: Alberta’s population growth is among the highest in Canada, and Calgary is absorbing a significant portion of that growth. More people means more demand for services, logistics, retail and office space.
• Economic diversification: Calgary is no longer just oil & gas. It’s moving into tech, logistics, renewable energy, data-centres. These shifts demand new types of commercial real estate.
• Affordability & value proposition: Compared to some major Canadian cities, Calgary offers lower entry cost, which makes investment dollars go further.
  
• Infrastructure & city initiatives: For example, regulation changes around infill, conversions, and mixed-use support investment.
• Interest rate / financing dynamics: While higher rates can slow things, the expectation of future rate reductions supports investment decisions.

Top Risks for Investors in Calgary Commercial Real Estate

No investment is without its risks. I want to be transparent with you — because when you plan ahead, you can mitigate many of them.

• Economic volatility tied to energy sector: Even though diversification is happening, Calgary’s economy still feels oil & gas influences. A downturn there can ripple.

• Interest rate uncertainty: If borrowing costs remain high, it can squeeze yields, delay deals and reduce investor appetite.

• Oversupply in certain segments: Especially newer office space or speculative industrial developments may face weaker absorption.

• Tenant demand shifts: Hybrid work models reduce demand for traditional offices; retail is impacted by e-commerce.

• Location and asset quality risk: A poorly located or dated asset may underperform. Investing in Calgary means you must still apply the usual “buy smart” criteria.

How to Find the Best Opportunities for Investing in Calgary Commercial Properties

Here’s where we shift gears from “what’s happening” to “what you should do.” If you’re considering investing in Calgary commercial properties, this is your action-plan.

Define your investment objective

Ask yourself:

• Am I looking for stable income (long-term lease, low risk) or growth/ value-add (redevelopment, repositioning)?

• What asset class am I comfortable with: retail, industrial, office (or mix)?

• What level of risk am I willing to take? (Higher risk = potentially higher return, but also greater downside)

Choose the right asset class (based on our earlier discussion)

• If you want lower risk & more stable returns → industrial is likely your best bet.

• If you’re comfortable with moderate risk and want growth potential → retail in high-growth suburbs or niche retail may fit.

• If you’re a developer or bold investor → office repositioning or mixed-use conversions in Calgary could be interesting.

Location, location, location

No matter the asset class, location matters. In Calgary:

• For industrial: near major highways, transportation hubs, border access.

• For retail: in suburbs experiencing population growth, strong demographics.

• For office: good access to transit, amenities, and in markets where vacancy is improving (perhaps suburban or belt-line).

• Always check local zoning, development pipelines, and infrastructure (e.g., transit expansions).

Due diligence & financials

• Review cap rates, vacancy rates, lease terms, tenant credit.

• Factor in financing costs (what are interest rates, terms).

• Consider operating costs (maintenance, taxes, insurance, capital expenditures).

• Stress-test for downside: what if vacancy rises by 10%, or rents fall by 5%?

• Review the building condition, potential required upgrades, and whether the property will remain relevant (i.e., “future-proofing”).

Timing & market entry

• 2025 is a strong year because the market is waking up. Entry now may be better than chasing later when competition increases.

• But avoid chasing overheated deals. The best bargains are often ones where you have negotiated terms and done your homework.

• Be prepared for longer holds. Commercial real estate is not as liquid as residential.

What this Means for You – My Promise as Your Calgary Commercial Real Estate Partner

As your advisor, here’s how I’ll help you make sense of investing in Calgary commercial properties in 2025 and turn the opportunities into results:

• I’ll bring you tailored listings in Calgary that match your criteria (asset class, budget, risk profile).

• I’ll provide market data (cap rates, vacancy, rents) so you can compare deals objectively.

• I’ll guide you through the negotiation and due-diligence process to minimise surprises.

• I’ll help you identify “hidden” value-add opportunities (e.g., lease-ups, repositioning, favourable zoning).

• I’ll keep you updated on local market shifts, regulations and trends — so you’re always ahead of the curve.

When you work with me, we’re not just buying a property; we’re making a strategic investment in Calgary’s commercial real estate future together.

Is 2025 Your Year to Invest in Calgary Commercial Real Estate?

If you’ve made it this far, thanks for sticking with me. You now know that investing in Calgary commercial properties isn’t just about buying a building — it’s about aligning with the city’s evolution, choosing your asset class wisely, doing your homework, and timing it right.

Here’s the bottom line:

• The fundamentals in Calgary are solid. Population growth, diversification, infrastructure momentum all support commercial real estate.

• If you pick the right segment (especially industrial) and the right location, you can find strong opportunities.

• It’s not without risk—but with the right approach and a partner who understands the market (that’s me), you can position yourself smartly.

So, is 2025 your year? I’d say yes — if you move now, stay strategic, and use the insights we’ve discussed. Let’s make it happen together.

If you’re ready to explore listings, talk strategy, or just bounce ideas, drop me a line. Jai Chaudhary Real Estate is all in for helping you succeed with commercial real estate in Calgary.

Here’s to smart investing, big wins, and being part of Calgary’s commercial property resurgence.