Calgary industrial market report
Q4 2024
Calgary industrial market trends
01. Declining construction and increasing vacancy rates
In Q4 2024, the Calgary industrial market saw a 23% quarter-over-quarter decline in under-construction inventory, a shift from the record-high development levels of recent years. Square footage under construction has dropped by 5.6 msf since its peak in Q4 2022. This slowdown in construction reflects a more cautious approach to balancing supply with absorption, suggesting a move toward greater market stability in the coming quarters.
02. New deliveries cater to the e-commerce sector
Q4 2024 saw the delivery of 654,000 sf of new space, predominantly logistical distribution centres and warehouses. These facilities cater to the booming e-commerce sector, with developers focusing on large spaces that accommodate fulfillment and shipping operations. This development type remains dominant, driven by the ongoing demand for efficient supply chain solutions to handle growing online retail volumes.
03. Calgary population growth driving demand
Calgary remains Canada’s fastest-growing city, driven by interprovincial migration and international immigration. Factors such as employment opportunities, affordable housing, and low taxes continue to attract newcomers. This population growth fuels the sustained demand for industrial space as businesses expand to the growing needs of the area.. The rising demand for shipping and fulfillment centers has drawn interest from larger tenants while smaller bays continue to experience strong demand.
Total vacancy rate
up 0.7% from Q4 2023
Availability rate
up 2.6% from Q4 2023
Sublease vacancy rate
up 0.5% from Q4 2023
Square feet of absorption
Square feet of completed projects
Square feet under construction
Your source for the latest Calgary industrial market reports
Get in-depth industrial market reports and insights from commercial real estate experts in the Greater Calgary area. Avison Young advisors look at Calgary commercial real estate activities and the latest Calgary statistics to provide you expert market research on Calgary's industrial properties.
Explore different topics like the latest industrial market pricing trends and analysis of Calgary's current industrial real estate market conditions. Gain a better understanding of Calgary’s industrial real estate outlook and stay ahead of current industrial space trends. Make smart decisions when it comes to investing in industrial properties in Calgary's competitive industrial real estate market. Avison Young is your trusted source for commercial real estate industrial market insights in Calgary.
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