As Calgary continues to evolve, so does its commercial real estate (CRE) landscape. Whether you’re an investor, business owner, developer, or broker, staying ahead of the market is key to making strategic decisions. As we enter 2025, several trends are shaping the trajectory of commercial real estate in Calgary—from shifting demand patterns and suburban growth to the influence of interest rates and urban redevelopment.
In this blog, we’ll explore the top Calgary commercial real estate trends to watch in 2025 and what they mean for landlords, tenants, and investors alike.
1. Suburban Commercial Hubs Continue to Gain Momentum
Over the past few years, suburban communities like Sage Hill, Mahogany, and Nolan Hill have seen substantial population growth—and with that comes increased demand for retail, medical, and service-based commercial space. In 2025, this trend is expected to accelerate as more Calgarians seek out housing in these family-friendly, accessible neighbourhoods.
New mixed-use developments, ample parking, and walkable amenities are drawing both tenants and investors to these areas. Landlords should take note: businesses that may have once prioritized downtown are now exploring suburban locations for better customer access and lower overhead.
CRE Calgary 2025 Insight: Expect continued absorption of space in suburban plazas and strong interest from franchise brands and health-related services.
2. Flight to Quality: Tenants Seeking Well-Positioned, Modern Space
Tenants are becoming increasingly selective. In both office and retail markets, businesses are prioritizing newer, more efficient spaces with good access, strong visibility, and quality co-tenancy. Older buildings with limited upgrades are facing higher vacancy unless repositioned or redeveloped.
This “flight to quality” trend is creating opportunities for landlords willing to invest in modernizing their properties, as well as for tenants looking to capitalize on incentives offered by motivated landlords.
Market Outlook Calgary: Well-located, Class A and recently renovated Class B properties will remain in high demand.
3. Owner-Users Driving Sales Activity in Smaller Retail & Office Assets
Interest rates may remain elevated in the short term, but owner-occupiers are still showing strong interest in buying their own spaces—particularly in the 1,000–3,000 sq. ft. range. This is especially true in medical, dental, and professional service industries, where long-term occupancy and patient loyalty justify the investment.
Calgary Commercial Real Estate Trend: Expect to see a steady pace of smaller strata sales and condo commercial units, especially in new or recently renovated developments.
4. Industrial Demand Remains Strong, But Supply Constraints Loom
Industrial real estate continues to be Calgary’s top-performing sector. Warehousing, logistics, manufacturing, and trades are driving demand for both small-bay and large-format industrial spaces. Vacancy rates remain historically low in well-positioned industrial parks.
However, land availability and construction costs are creating a bottleneck for new supply. Tenants are locking in longer-term leases to secure space in anticipation of continued tightening.
CRE Calgary 2025 Insight: Expect lease rates to remain strong in the industrial sector, with limited availability fueling competition.
5. Inner-City Redevelopment Offers Long-Term Opportunity
Calgary’s inner-city areas like Mission, Inglewood, Beltline, and Kensington are seeing renewed investment. While not without challenges, these neighborhoods offer long-term potential for mixed-use redevelopment, boutique retail, and destination dining.
Revitalization incentives and a growing appetite for walkable urban experiences are encouraging both private and public investment.
Market Outlook Calgary: Watch for land assemblies and small-scale redevelopment projects as long-term plays in high-character inner-city nodes.
Positioning for What’s Next
2025 will be a year of adjustment and opportunity in Calgary’s commercial real estate market. From suburban retail expansion to the continued strength of industrial and the repositioning of older assets, market players who stay informed and agile will be best positioned to thrive.
Whether you’re considering leasing, investing, or repositioning a property, now is the time to align with a brokerage that understands Calgary’s evolving landscape.
Looking for local expertise? Contact our team to discuss how current trends can shape your commercial real estate strategy in 2025 and beyond.