Lethbridge office market report
Q3 2025
Three key trends:
01 – Downtown vs. suburban
Lethbridge has 1.42M sf of office space — 995K downtown, 425K suburban. Suburban vacancy is much lower, due to newer buildings, lower costs, and stronger demand. Professional services prefer suburbs, as downtown foot traffic isn’t a big draw in a small city.02 – Office investment
National office investment has slowed post-pandemic, but Lethbridge’s small inventory has kept activity steady. In 2025, office-inclusive properties traded actively, with focus on vacancy and cap rates over asset type. Owner-users, especially in medical/dental, are buying to retain value from build-outs.03 – Construction costs
Construction costs rose 40.5% from 2020–2023, and while inflation has eased, costs remain 150% higher than five years ago. This creates a pricing gap between pre- and post-pandemic assets. Tenants and landlords must adjust lease expectations, with premiums for new builds and modern spaces.Downtown vacancy rate
Downtown average lease rate
Downtown average additional rent
Suburban vacancy rate
Suburban average lease rate
Suburban average additional rent
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