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Calgary Industrial Insights – Q4 2023

January 15, 2024
Calgary Industrial Insights – Q4 2023

Calgary’s industrial market appeal continues with exciting opportunity for occupants and investors looking to relocate or grow.

Here are the highlights:

Growth Continues: The majority of new developments are catering to larger users, leaving tight Inventory for small to medium industrial bay product.

Vacancy Update: The CGA overall vacancy rate rose to 3.1% in Q4, largely resulting from an influx of new buildings entering the market.

Positive Absorption: 1.8 million sq.ft were absorbed in Q4, noting 3.4 million sq.ft were absorbed throughout 2023.

Rental Rates: Average rental rates slightly decreased from last quarter ($10.84 – $10.67), noting year-over-year rental rates still realized a marginal increase of 1.4%.

Development in Full Swing: Over 3.5 million sq.ft of new construction was delivered this quarter.

Distribution Hub: Calgary is a key western distribution hub, enabling companies to serve most of Western Canada within a day’s drive.

Outlook: We anticipate 4.4 million sq.ft of speculative construction completions in 2024, with 21% already preleased. The anticipated interest rate decrease in 2024 may lead to a more favorable environment for construction to continue thriving.

Calgary remains attractive for industrial occupants looking to relocate or grow, still offering significantly greater affordability compared to Toronto and Vancouver, while growth is expected to continue.

To read the full report, click on the link below!


Calgary Industrial Insight - Q4 2023