CALGARY COMMERCIAL REAL ESTATE MARKET REPORT — 2026

Office Is Healing. Industrial Is Working. Retail Is Tight. And Calgary Is Still Building. Commercial real estate is a funny business. Someone looks at an empty storefront and sees a problem. Someone else sees a restaurant.

Someone looks at an old office building and sees 30% vacancy. Someone else sees a conversion opportunity.

And somebody looks at a warehouse in Balzac and gets more excited than most people get looking at a mountain-view penthouse. That's commercial real estate. The building matters. But what really matters is what the building can DO.

And Calgary's commercial real estate market in 2026 is giving investors a lot to think about. CALGARY IS NOT ONE COMMERCIAL REAL ESTATE MARKET Let's start here. Asking: “How is Calgary commercial real estate doing?” is almost like asking: “How is the stock market?” Which part? Downtown office? Suburban office? Industrial? Retail? Medical? Neighbourhood commercial? Development land? These markets are behaving very differently in 2026. Industrial fundamentals remain relatively strong. Retail space is tight in many suburban areas. Suburban office has been quietly improving.

Downtown office is recovering, but still dealing with substantial vacancy and the long-term effects of changing workplace patterns, corporate consolidation and energy-sector mergers.

So before I tell you whether I like a commercial property, tell me what we're actually buying.

INDUSTRIAL: PROBABLY ONE OF CALGARY'S MOST INTERESTING STORIES

If you want to understand why investors continue paying attention to Calgary industrial real estate, look at the fundamentals.

Calgary's overall industrial vacancy rate declined to approximately 4.7% in Q2 2026, according to Cushman & Wakefield.

Colliers reported approximately 1.54 million square feet of positive net absorption across the Greater Calgary Area during Q2. That's significant demand.

Industrial properties benefit from something Calgary does particularly well: LOCATION.

Calgary provides access to Western Canada, major highway networks, rail, the airport and growing logistics corridors.

Compared with Vancouver and Toronto, Calgary can also offer businesses a different cost structure for land and industrial occupancy. That's why warehouses aren't simply boring boxes anymore. Well... They're still boxes. But potentially very valuable boxes. BALZAC AND SOUTHEAST CALGARY DESERVE ATTENTION

Large distribution activity continues around areas such as Balzac and Calgary's southeast industrial corridors.

Colliers specifically noted several large-bay distribution transactions in these areas during Q2. And this makes sense. Distribution companies care about things like: Highway access. Truck movement. Loading. Ceiling heights. Yard space. Labour availability. Airport connectivity. And operating costs.

They generally care significantly less about whether the lobby has Italian marble. Commercial real estate is about utility.

A beautiful building that doesn't work for the tenant can be a terrible investment. An ugly warehouse in exactly the right location? Now we have a conversation. INDUSTRIAL SUPPLY IS STILL COMING Strong demand doesn't mean there's no new supply.

Colliers reported just over 1 million square feet of industrial completions during Q2 2026, while approximately 3.3 million square feet remained under construction. That's important.

Whenever I'm looking at industrial investment, I don't only want to know today's vacancy. I want to know: What's being built nearby? How much space is coming? Who are the tenants? What size bays are actually in demand? What rents are achievable? How much tenant-improvement money might be required? How long could the space sit vacant?

A 4.7% market vacancy rate doesn't mean YOUR building will always be 95.3% occupied. Commercial real estate doesn't work that way. You still have to buy the right asset. RETAIL: CALGARY'S QUIETLY STRONG COMMERCIAL MARKET

Retail is one of Calgary's most interesting commercial stories right now.

CBRE reported Calgary retail vacancy at approximately 5.8% during the first half of 2026, down slightly from 5.9%. But even that number doesn't tell the full story. Certain suburban areas are dramatically tighter. CBRE reported vacancy of only approximately: 0.4% in Calgary's South retail submarket 0.9% in North Central 1.7% in the Southeast That's tight. And there's a logical reason. Calgary expanded rapidly. New communities were built. Families moved in. And people need things. Groceries. Coffee. Restaurants. Dentists. Physiotherapy. Daycare. Haircuts. Gyms. Pharmacies. Medical services.

And apparently approximately seventeen different places to buy bubble tea. Population creates rooftops. Rooftops create customers. Customers create demand for commercial space. THIS IS WHY I LIKE NEIGHBOURHOOD COMMERCIAL

When I'm looking at smaller commercial investments, I like understanding the daily life around the property. How many people live nearby? Are more communities being built? What's the traffic count? Is parking easy? Can customers actually see the business? Who are the neighbouring tenants? Is there a grocery anchor? Schools nearby? Medical? Transit? Major employment? What businesses are missing from the area? A commercial property doesn't exist by itself.

Its value comes partly from the economic ecosystem around it.

Sometimes a 1,500-square-foot bay in exactly the right growing community interests me more than a beautiful downtown office floor. Because I can understand exactly who needs to use it. DOWNTOWN OFFICE: DON'T CALL IT DEAD

Calgary downtown office has been the favourite punching bag of commercial real estate for years. Yes, vacancy remains high.

Depending on the dataset and geographic definition used, downtown vacancy is still in the high-20% range.

Cresa measured downtown vacancy at approximately 26.96% in Q2 2026. But something important happened: Positive absorption returned.

Cresa reported approximately 361,600 square feet of positive absorption, the first positive quarter since Q1 2025 under its measurement.

CBRE similarly reported that downtown Calgary experienced positive net absorption for the first time since Q4 2024. That's encouraging. It doesn't mean the problem disappeared. But it does mean: “Downtown office is dead” is becoming an increasingly lazy analysis. THE BEST OFFICE BUILDINGS ARE DOING BETTER Here's where commercial real estate gets interesting.

Tenants aren't treating every downtown office building equally. Quality matters. CBRE reports continued strong demand for Class AA space.

During the first half of 2026, Class AA downtown buildings recorded approximately 207,000 square feet of positive net absorption. Companies increasingly want: Better amenities. Better buildings. Better locations. Better employee experience. Modern systems. Good parking and accessibility. Essentially, companies are saying:

“If you're making everybody come back to the office, at least give us a nice office.” Fair enough.

This creates what commercial people call a “flight to quality.”

And it means two office towers across the street from each other can have completely different investment stories. OLDER OFFICE IS WHERE THINGS GET COMPLICATED This is the other side. Cresa reported Q2 downtown vacancy around: 17.5% for Class AA 32.9% for Class A 27.7% for Class B 38.8% for Class C That is a massive difference. And this is why I don't buy the statement: “Office is cheap.” Cheap compared with what? What would it cost to modernize? Who's the tenant? What rent can it command? How much tenant improvement is required? How much free rent? How long could it remain vacant? Can it be converted? Does the land have another use? Sometimes cheap commercial real estate is an opportunity. Sometimes it's simply cheap because nobody wants it. My job is to figure out which one we're looking at. CALGARY'S OFFICE CONVERSION STRATEGY IS CHANGING DOWNTOWN

One of the more interesting long-term Calgary stories is the Downtown Office Conversion Program.

Calgary has been encouraging underused office buildings to convert into residential and other uses.

The program reopened for another phase in 2026, with additional funding available. I like the concept for a simple reason:

If you have too much of something the market doesn't need and not enough of something it does... Change the use.

Removing obsolete office inventory can potentially improve the remaining office market while bringing more residents downtown. And residents don't only occupy apartments. They buy coffee. Eat dinner. Use gyms. Need groceries. Need services. That can eventually help street-level retail too. Commercial real estate is connected. SUBURBAN OFFICE MAY BE THE SURPRISE OF 2026

If downtown gets all the headlines, suburban office might be quietly having the more interesting year.

CBRE reported approximately 694,000 square feet of suburban office net absorption during the first half of 2026.

According to CBRE, that's the strongest first two quarters of absorption ever recorded for Calgary's suburban office market. Think about that.

While everybody is still discussing the “death of office,” Calgary suburban office just produced a record first half for absorption. Why? Part of the answer is population.

When communities expand, businesses and services follow them. Construction companies. Engineering. Healthcare. Education. Childcare. Professional services. Other businesses serving Calgary's growing population. People don't all work downtown. Businesses increasingly don't need to either. COMMERCIAL REAL ESTATE FOLLOWS PEOPLE

This is why I keep connecting Calgary migration with commercial real estate.

Calgary added a tremendous number of residents over the last several years. Those people needed homes. But once they moved into those homes, they also needed: Doctors. Dentists. Daycare. Restaurants. Grocery stores. Warehouses. Offices. Auto services. Gyms. Professional services. Entertainment.

That's why residential growth eventually becomes a commercial real estate story. Follow the rooftops. Then ask: What services will those rooftops need? BUT MIGRATION IS SLOWING This matters too.

Calgary's extraordinary migration boom of 2023 and 2024 isn't continuing at the same pace in 2026. Population is still expected to grow, but more slowly.

That means I wouldn't buy commercial property based simply on: “Calgary is growing.” That's not enough. I want micro-level analysis. Which community? What population? What demographics? What businesses? What competition? What future construction? What tenant? What lease? What rent?

Commercial investment becomes dangerous when a macroeconomic story is used to justify a bad individual property. THE LEASE MAY BE MORE IMPORTANT THAN THE BUILDING

Residential investors sometimes need time to adjust to this.

In commercial real estate, I can love the building and hate the investment. Why? The lease. Who's the tenant? How financially strong are they? How much term remains? What are the renewal options? Who pays operating costs? What increases are built into the lease? What happens when the tenant leaves? How expensive would it be to replace them?

A $2-million commercial property occupied by a strong tenant under a good long-term lease is a very different investment from the same building sitting vacant. Same bricks. Completely different asset. COMMERCIAL FINANCING IS DIFFERENT TOO This is where my mortgage brain enters the conversation. Commercial financing isn't simply: “Residential mortgage, but bigger.” The lender may care deeply about the property's income. Debt-service coverage. Tenant quality. Lease terms. Property type. Environmental issues. Appraisal. Borrower experience. Net worth. Liquidity. Location. And the exit strategy.

Down-payment/equity requirements can also be significantly different from residential financing depending on the property and lender. That's why I want to see the property early.

Don't negotiate a complicated commercial purchase and then call me three days before financing conditions saying: “It's basically the same as buying a house, right?” That's a very short horror story. CAP RATE IS IMPORTANT — BUT IT ISN'T THE ENTIRE INVESTMENT Commercial investors love cap rates. And yes, they're important. But please don't show me: “8% CAP!!!” and expect the conversation to end. I want to know how the NOI was calculated. Are the expenses realistic? Is there deferred maintenance? Are current rents above or below market? When do leases expire? What capital expenditures are coming? Is there vacancy? Is the tenant paying operating costs? What happens to the cap rate if the tenant leaves? An attractive cap rate can represent return. It can also represent risk. Sometimes both. WHAT WOULD I BE WATCHING IN CALGARY?

If I were analyzing Calgary commercial opportunities today, several areas would have my attention. INDUSTRIAL

Especially well-located logistics, distribution and functional smaller-bay industrial properties. NEIGHBOURHOOD RETAIL

Particularly in growing suburban communities where daily-needs space remains tight. MEDICAL AND SERVICE COMMERCIAL

Population growth creates demand for healthcare and personal services. SUBURBAN OFFICE

Not every office property — but good-quality, well-located buildings serving growing employment nodes deserve attention. VALUE-ADD DOWNTOWN This is much more specialized.

But high vacancy and conversion activity can create opportunities for experienced investors who genuinely understand redevelopment risk. And finally: LAND.

Because sometimes the most interesting commercial building isn't the building. It's what the land may eventually become. MY VIEW OF CALGARY COMMERCIAL REAL ESTATE IN 2026

I don't think Calgary commercial real estate can be summarized as: GOOD. BAD. BOOMING. OR CRASHING. Industrial is relatively healthy. Retail is tight in many suburban areas. Suburban office is showing surprising strength.

Downtown office is improving but still has serious structural challenges.

And development continues to follow Calgary's expanding population and communities.

To me, that creates a market where selection matters more than excitement. And I like markets like that.

Because when everything goes up, everybody looks like a genius.

When markets become selective, the PROPERTY has to do some work. SO BEFORE YOU BUY COMMERCIAL REAL ESTATE, CONVINCE ME. Don't tell me: “Calgary is growing.” I know. Tell me: Why this building? Why this location? Why this tenant? Why this lease? Why this price? What's the income? What's the risk? What's the financing? What's the exit?

And what could make this property more valuable five or ten years from now? If you can answer those questions... Now you've got my attention. Send me the property. We'll look at the building. We'll look at the business behind the building. And then we'll look at the mortgage.

Because in commercial real estate, I'm not interested in financing four walls.

I want to understand what those four walls are going to earn. CALGARY COMMERCIAL REAL ESTATE — THE SHORT VERSION Industrial: Strong fundamentals. Retail: Tight, particularly in growing suburban markets. Suburban Office: Quietly strengthening.

Downtown Office: Improving, but still carrying substantial vacancy.

Investment Market: Opportunity exists, but property selection and due diligence matter. My View:

Don't buy Calgary commercial real estate because Calgary is growing.

Buy a commercial property because you've figured out HOW Calgary's growth can benefit that particular property. IMPORTANT INFORMATION

This Calgary Commercial Real Estate Market Report was prepared in August 2026 using the latest available Q2 and H1 2026 market information from major commercial real estate research firms.

Different research firms use different geographic boundaries, building classifications and methodologies, so vacancy and absorption statistics can vary between reports. Statistics should therefore be compared within the same dataset rather than treated as perfectly interchangeable.

This article is for general educational and informational purposes only and is not financial, investment, mortgage, legal, tax, appraisal, environmental, construction or commercial real-estate advice. Commercial property performance and financing depend on the individual property, borrower, tenants, leases, market conditions and lender requirements.