Have you ever wondered why so many companies are looking hard at the industrial market in Calgary right now? If you’re an investor, a business owner needing space, or simply curious about the pulse of the city’s commercial-real-estate scene, you’ve come to the right place. In this blog we’ll dig into the industrial & logistics property demand in Calgary, what’s driving it, how the market is behaving, and what that means for you. By the end you’ll walk away with clarity and actionable insights — promise.

The Big Picture – Why Calgary Matters for Industrial & Logistics Property Demand

Location + Infrastructure = Opportunity

One of the foundational reasons the keyword industrial property in Calgary is gaining traction: Calgary has the right mix of infrastructure, geography and growth to make it a logistics hub. According to recent market reports, the city’s industrial sector remains one of the strongest non-residential property types.

For example:

• Calgary sits inland but with strong highway and rail connections, making it attractive for distribution and warehousing.
• The city is experiencing population growth and economic momentum—both of which raise demand for warehousing, logistics, and the real-estate supporting them.
• So when you see logistics real estate Calgary mentioned, know that its appeal is very much grounded in place and movement.
  

Demand Drivers – Why Businesses are Choosing Calgary

Let’s talk drivers. What’s pushing industrial & logistics property demand in Calgary upward? Here are some of the major forces:

• E-commerce and supply-chain shifts: As companies rethink just-in-case vs just-in-time, they want smarter warehousing, better logistics, and less risk of stock-outs. Canada-wide, industrial warehousing is under pressure due to demand and limited land. 
• Tight supply of industrial land/inventory: In a market like Calgary, where available space is shrinking or being absorbed fast, there’s upward pressure on rent and values. 
• Investor interest and value stability: Investors see industrial as relatively resilient compared to, say, offices or retail in some markets. As one report notes: “The industrial sector remains Calgary’s strongest … with tight availability of large-format distribution spaces continuing to push values higher.”
• Affordability and comparative advantage: Compared with oversaturated or overheated markets (e.g., Vancouver or Toronto), Calgary offers more value for space, especially for logistics.

Put simply: businesses need space, Calgary has attributes that make it a smart choice, inventory is limited — bingo, you get rising demand for industrial/ logistics property.

Market Snapshot – How the Industrial Market in Calgary is Performing

If you’re trying to get a feel for the market for warehouse space Calgary or new builds for logistics, here are what the data are telling us.

Vacancy, Availability & Absorption

• According to a Q1 2025 update by Altus Group, Calgary’s industrial availability rate increased to ~ 6.9 % year-over-year in Q1.
• A Q2 2025 report shows Calgary was one of the strong performers in Canada: it absorbed just over 1.0 million sq ft in Q2, largely via a pre-leased built-to-suit facility.
• The 2025 property assessment for the City of Calgary notes that industrial properties are increasing in value — typical non-residential assessment change is +3 % overall, but industrial properties up ~5 %.

All told, the vacancy and availability are tight, absorption is still positive in Calgary, and values are rising. That’s a healthy sign for anyone involved in industrial leasing Calgary or looking to buy.

Supply & Development Trends

• One article notes that in Q1 2025, no new industrial space was delivered in Calgary, which further tightens supply.
• While speculative large-bay distribution space has slowed in some segments, the demand for well-located, functional industrial/logistics property remains strong.
• Because much of the growth is now happening in adjacent municipalities or greenfields (for example in Balzac/Rocky View County), the Calgary core markets feel the spill-effect of scarcity.

For investors or tenants hunting for industrial property in Calgary, you might find fewer new options, or more competition for existing stock.

Rent & Pricing Trends

• Some data show rental rates (asking net rent) holding firm in Calgary despite softer markets elsewhere. For example, one report states rents held firm thanks to logistics demand.
• Assessment value increases (5 % for industrial) hint at rising underlying value and possibly higher capital costs for new entrants.

In short: expect that industrial property in Calgary is becoming more expensive, and timing/negotiation may matter more than ever.

What This Means for You – Business Owners, Investors & Tenants

Okay, so we’ve set the scene. Let’s get practical: what should you do if you’re looking at logistics real estate Calgary or investing in industrial property?

For Tenants – How to Secure Space Smartly

If your business needs warehouse or logistics space in Calgary:

• Start early. With supply tight, waiting until your current lease ends might leave you scrambling.
  
• Be flexible on footprint. Smaller, more efficient spaces with the right location may trump large but sub-optimal space. One trend is “flexibility over footprint.”
• Focus on location and connectivity. Near major highways, rail, or airport will matter more as companies try to minimise cost and improve service.
  
• Understand total cost, not just rent. Because increasing assessments and higher land values may push up operating costs.
• Consider built-to-suit or pre-lease deals if possible. These can give you an edge in a tight market.

For Investors – How to Approach the Market

If you’re weighing up buying for industrial & logistics property demand in Calgary:

• Recognise the resilience of industrial assets. As other sectors wobble, industrial remains a strong performer.
  
• Consider value-add or repositioning opportunities. For example: converting older space, or adding automation to increase usability.
  
• Be cautious with large speculative developments that aren’t pre-leased — some reports suggest a pull-back in such supply.
• Watch the land market. Location-constrained parcels will command premium; early land-play can yield upside.
  
• Factor in macro risks: interest rates, trade/tariff exposure, and e-commerce shifts all play into the industrial/logistics equation.

For Developers & Landowners

If you own land or are thinking of developing industrial real estate in Calgary:

• Develop with flexibility in mind. Tenants increasingly value adaptability (e.g., multi-bay units, smaller footprints, scalability).

• Position near major access corridors (highways/airport) to stay competitive.

• Infrastructure matters — utilities, road access, logistics support services add value.

• Timing is key. With supply lagging and demand steady, well-positioned new product may achieve strong results — but over-build is still a risk.

Calgary Highlights – Why This City’s Story Stands Out

I’d be remiss if I didn’t pause and reflect: what makes Calgary’s story unique when it comes to industrial property in Calgary? Well, a few things:

• Population growth and shifting economy: Calgary has seen solid net migration, supporting demand across sectors (even industrial).
• Logistics hub positioning: As one source put it, Calgary is well-suited as an inland port/distribution node, offering connectivity across Western Canada.
• Affordability relative to coastal markets: Many businesses are re-thinking eastern/western Canada real-estate premiums, and Calgary is benefiting from that.
  
• Limited new supply (for now): With tight supply, values and rents are holding, which signals strength for landlords and owners.
  
• Dynamic shift in tenant demand:

  Rather than big warehouse footprints alone, clients are looking for smarter logistics space, flexible leases, and better locational attributes. That is, they’re adapting to the “new normal”.

In other words: Calgary is not just “another city” in the industrial real-estate game. It has a narrative, momentum and a set of structural advantages. And that makes industrial leasing Calgary and logistics real estate Calgary worth attention.

Challenges & Watch-Outs — Because Nothing’s Perfect

Before you dive in thinking all green lights, let’s touch on some of the bumps you should keep in mind when exploring industrial/logistics property demand in Calgary.

• Interest rates and capital costs: As with all real-estate sectors, industrial assets are sensitive to financing costs. Rising interest rates squeeze returns.
  
• Speculative supply risk: Although Calgary has been relatively tight, if too many large speculative developments come online un-leased, vacancy could increase.
• Tenant demand shifts: E-commerce and logistics needs are evolving quickly—what was a good space 5 years ago may not suit the next wave (automation, robotics, smaller bay sizes).
  
• Land constraints and cost escalation: As land becomes scarcer and more expensive, development margins shrink and owners face higher carrying costs.
  
• Macro trade and supply-chain risks: Calgary benefits from being a distribution hub, but global trade disruptions, staffing challenges or regulatory shifts could impact logistics activity.
  
• Competitive pressures from surrounding municipalities: Some growth is going into adjacent zones (e.g., Rocky View County) which may compete for tenants and land.

Being aware of these can help you approach the market with eyes open—and avoid getting burned by over-enthusiastic assumptions.

My Forecast & Tips for You – As Jai Chaudhary

Let me wrap up with what I’m personally watching, and three key action-points I suggest for you if you’re involved in or curious about this market.

What I see ahead

• I believe the industrial & logistics property demand in Calgary will remain elevated in the near-term. The structural drivers (location, logistics, supply constraints) are too strong to fade quickly.

• That said, growth will become more nuanced: fewer massive speculative big-box warehouses, more flexible units, multi-tenant parks, conversion projects.

• Rents and values will continue rising, but likely at a more moderate pace — capital markets may price in higher risk, and tenants will demand more flexibility.

• Developers will increasingly focus on logistics-adjacent uses (e.g., cold storage, last-mile hubs, value-add upgrades) rather than vanilla warehouse space.

• If you’re late to the game in prime locations, competition will be stiff—so early entry and smart deal terms become more crucial.

Three practical tips for you

• Lock in early, think future-proof
  If you’re a tenant: begin your space review now, even if your lease ends in 12-18 months. Consider flexibility, automation readiness, and how your supply chain might evolve.
  

• Location matters – but so does usability
  For buyers/landowners: location near transport infrastructure is non-negotiable. But also evaluate building height, clearances, column spacing, loading docks, energy efficiency — increasingly important for logistics users.
  

• Stay agile and partner smart Whether you’re tenant, landlord or investor: Partner with people who understand the logistics real-estate world, not just “warehouse space”. The demand is shifting faster than many appreciate.

• Ask yourself: Will this property still be relevant in 5-10 years? What can I build/lease now that anticipates the next wave of logistics (automation, data, speed)?

• Keep local nuance in mind

  Calgary is unique: the cost base, labour force, regulatory incentives, and land availability all differ from Toronto/Vancouver. Use that to your advantage. Conversations like “industrial leasing Calgary” mean something a bit different here versus elsewhere.

Why Now is a Key Moment for Industrial in Calgary

So, to bring it all together: If you’ve been questioning the strength of industrial property in Calgary or wondering whether now is the time to move, the answer is: yes – but with smarts.

• The drivers (e-commerce, logistics, regional growth) are real.

• Calgary offers competitive advantages.

• Supply is constrained, which supports upward pressure on rent and value.

• The type of industrial/logistics space demanded is evolving — not just “any warehouse” but the right warehouse.

• Challenges exist (costs, interest rates, speculative risk) — so don’t assume a free ride.

As Jai Chaudhary from Jai Chaudhary Real Estate, my promise to you is this: if you keep these factors in mind, position early, act with insight — you’ll not only navigate the market intelligently but stand to benefit from the uptick in industrial & logistics property demand in Calgary.

If you’re ready to explore specific properties, leasing options, or investment opportunities in Calgary’s industrial market, I’d be more than happy to walk you through what’s available, what fits your needs, and how to lock in favourable terms. Let’s make sure you’re not just chasing the wave — but riding it.