Calgary’s industrial real estate market is experiencing a surge in demand for smaller industrial units. These compact spaces, typically ranging from 1,000 to 5,000 square feet, are attracting a diverse range of businesses, from startups to established companies looking for agile solutions.
Why the Demand?
- Affordability: Smaller units offer lower leasing or purchase costs, making them ideal for businesses optimizing budgets in a dynamic economy.
- Flexibility: These spaces can be adapted for various uses, including warehousing, light manufacturing, or showroom, catering to Calgary’s growing entrepreneurial scene.
- Strategic Location: Calgary’s proximity to major transport routes, like the Trans-Canada Highway, makes it a hub for logistics and distribution, increasing the appeal of compact units for e-commerce and last-mile delivery.
Who’s Driving the Trend?
- E-commerce Businesses: With online shopping booming, small units are perfect for inventory storage and order fulfillment.
- Local Startups: Calgary’s vibrant startup ecosystem favors these spaces for their cost-effectiveness and scalability.
- Trades and Contractors: Small industrial units provide secure storage for equipment and materials, meeting the needs of the city’s active construction and trade sector.
Market Insights
Vacancy rates for small industrial units in Calgary are at historic lows. This scarcity has driven up rental rates, with some areas seeing increases of 10-15% year-over-year. Businesses are advised to act quickly to secure spaces, and work with a trusted specialist in Industrial Real Estate, as competition is fierce.
Looking Ahead
As Calgary continues to grow as a commercial hub, the demand for small and flex industrial units is expected to remain strong. Developers are responding by planning new projects tailored to these needs, but supply may struggle to keep pace with demand in the near term.
At Calgary Commercial Group/ NAI Advent, we work with businesses of all sizes to find the ideal small or flex industrial space in Calgary. With our extensive experience and in-depth market knowledge, we are able to guide you through the process and make it simple to secure the right space for your needs.
Written by Kaile Landry – Senior Associate, Calgary Commercial Group / NAI Advent
Looking for the right space? Contact us to see how we can help, or explore our current listings for lease.
