Greater Calgary investment report

Industrial and multifamily dominate amid policy-driven shifts

Improving credit conditions and rate cuts position the market for renewed investment activity across core sectors, highlighted in both industrial and multifamily.
 

Investment trends to watch

01. Debt markets move toward normalization

Canada’s debt markets are gradually normalizing as the yield curve starts to correct from its prolonged inversion. Declining short-term rates paired with more stable long-term yields are restoring confidence in economic conditions and improving access to credit. This shift is narrowing the gap between borrowing costs and cap rates, creating a more supportive environment for capital deployment—particularly into stable, lower-risk assets.

02. Industrial demand strong amid limited supply

The new federal budget introduces the Productivity Super-Deduction (see Avison Young’s federal budget analysis here), which will allow businesses to fully expense eligible assets in the first year. This incentive enhances upfront cash flow for industrial landlords and makes new construction and upgrades more feasible. As the market continues to face a shortage of available inventory, this new incentive will increase demand of newer builds within the coming months.

03. Alberta emerges as Canada’s innovation hub

Alberta continues to outperform other provinces as an investment destination, supported by its high quality of life, affordability, and business-friendly environment. The local economy continues to diversify beyond oil and gas, leading to job opportunities. Moreover, with approximately $2.4 billion of venture capital being invested over the past 4 years, Calgary’s tech sector is expanding and attracting new entrants. This momentum is expected to continue to boost investment demand heading into the new year.