Calgary industrial market report

01. Strong preleasing activity 

Pre-leasing activity continues to play a significant role in Calgary's industrial market, allowing developers to advance projects with increased confidence while limiting vacancy generated by new deliveries. New supply continues to be absorbed well ahead of (and immediately upon) delivery. Of the 3.9 million square feet (msf) currently under construction across 16 developments, 2.7 msf (roughly 72%) is already preleased. The market posted positive net absorption of 396,880 sf overall in Q2, while new construction deliveries have fallen well off historic highs. With the market signaling continued strength, developers appear encouraged to keep building, and the construction pipeline is beginning to grow as a result.

 

02. Investment market gaining strength

Industrial investment sales volume climbed to $342 million in Q2 2026, up from $235 million in Q1, with several large transactions completed by institutional and major private capital. That brings first-half 2026 volume to $577 million, up roughly 57% over the same period last year, and puts annual sales of improved industrial properties on track to surpass 2025's full-year total of $1 billion. Industrial land sales are following a similar trajectory, with $105 million transacted through the first half of 2026 compared to the $113 million total recorded in 2025. Strong market fundamentals, favourable financing conditions, and tightening vacancy continue to underpin this growth, drawing an increasingly competitive mix of buyers into the Calgary industrial market.

 

03. Small-bay tightening affects 

Calgary's rapid population growth continues to fuel demand from local businesses, but the industrial market's ability to accommodate them is increasingly strained by a shortage of entry-level and specialized space. Smaller, locally-focused businesses are finding it especially difficult to secure suitable space in the sub-5,000 sf range, a segment where available options have thinned considerably as competition for the remaining inventory intensifies. This scarcity is compounding an already tight leasing environment, leaving many smaller occupiers with fewer choices and less negotiating leverage than they'd have in a more balanced market. On a more encouraging note, developers appear to be responding to this gap, with a renewed wave of speculative construction aimed squarely at small- and mid-bay users; a shift that should begin to ease the pressure on this underserved segment of the market over time.