Retail Lease Rates in Calgary: Rising Demand Meets Limited Supply
In 2025, Calgary’s retail leasing market is marked by tight supply, rising rents, and strong tenant demand. The retail availability rate has dropped to a historic low of just 2.8%, placing Calgary among the most competitive retail markets in North America.
This shift is being driven by a few key factors:
- High population growth continues to expand the city’s customer base.
- Limited new retail development is creating supply pressure.
- Robust consumer spending, particularly in food, apparel, and experience-based retail, is driving absorption.
Retail asking rents are climbing after several years of stagnation, with upward pressure particularly noticeable at the end of 2024 and into 2025. Operators in high-traffic districts like the Downtown Core, Beltline, Kensington, East Village, and emerging suburban hubs such as Seton and Quarry Park are seeing increased competition for space.
Retailers pursuing space in these desirable areas can expect higher rates and less negotiating flexibility, while businesses willing to consider suburban or fringe markets may find more favorable lease terms and larger footprints.
Key Takeaway:
Calgary retail lease rates are on the rise, with strong activity across both urban and suburban corridors. Landlords are gaining leverage, especially in well-established and high-visibility locations.
Office Lease Rates in Calgary: Stabilization and Selective Growth
After a decade of volatility, Calgary’s office market is showing signs of renewed stability and moderate rent growth in 2025. One of the most notable changes has been the steady climb in average lease rates, alongside a significant drop in vacancy.
Market Highlights:
- The average net asking rate for office space citywide reached $15.84 per sq. ft. in Q1 2025, up from $14.97 at the end of 2024.
- In Downtown Calgary, that number is even higher at $16.31 per sq. ft., compared to $14.95 just a few months prior.
- Vacancy rates dropped by 300 basis points in 2024 — the fastest decrease among all major Canadian cities – which naturally increases competition in the market and pushes net rents higher.
This uptick in rental rates reflects a growing preference for high-quality, well-located office spaces, especially move-in ready units with furniture, technology infrastructure, and building amenities. At the same time, older or less competitive properties are being removed from inventory, boosting the average rental rates overall.
| Market Segment | Avg. Net Asking Rate (Q1 2025) |
|---|---|
| Calgary Office (Overall) | $15.84 per sq. ft. |
| Downtown Calgary | $16.31 per sq. ft. |
Key Takeaway:
Office tenants should expect modest rental increases, especially for Class A and renovated spaces, as vacancy tightens and demand shifts toward quality and flexibility.
What This Means for Tenants and Investors
2025 is a year of renewed confidence in Calgary’s commercial real estate sector, driven by economic resilience, population growth, and evolving tenant preferences.
- Retail tenants should act early and focus on location strategy, as space in high-demand areas is increasingly limited.
- Office users may still find value in non-core locations, but will pay a premium for turnkey, amenity-rich environments in desirable districts.
- Landlords are regaining pricing power in select segments but may still offer incentives in niche or underperforming pockets.
Final Thoughts
Both retail and office lease rates in Calgary are trending upward in 2025. If you’re a business owner, investor, or landlord, it’s crucial to stay informed and act proactively.
At Leaseco Realty, we help tenants and landlords navigate Calgary’s evolving commercial real estate landscape with expert insight, tailored strategies, and a deep understanding of market trends.
Looking for space or planning your next move?Contact our team for market-specific advice and opportunities in Calgary’s hottest retail and office corridors.
Sources:
- Calgary Retail Insight – JLL
- Cushman & Wakefield Q1 2025 Office Marketbeat (PDF)
- Retail Insider – Calgary Market Updates
- City of Calgary Office Market Trends PDF