Calgary’s industrial real estate market regained momentum in the second half of 2025, reinforcing the city’s position as one of Western Canada’s most resilient logistics and distribution hubs.
After a softer second quarter, leasing demand rebounded in Q3, net absorption turned decisively positive, and vacancy rates tightened across most major industrial submarkets in Calgary and Rocky View County. Average asking rents continued to climb, while investment activity remained disciplined but stable — a sign of confidence in long-term industrial fundamentals.
Why Calgary’s Industrial Market Remains Competitive
Calgary continues to attract industrial occupiers and investors due to a unique combination of economic and geographic advantages:
- Strong population growth and sustained in-migration
- Access to major transportation corridors, including Deerfoot Trail, Stoney Trail, and key highway routes
- Competitive operating and land costs compared to other major Canadian markets
- A skilled and expanding labour pool supporting logistics, warehousing, and advanced manufacturing
Even amid broader economic uncertainty, demand for modern warehouse and distribution space in Calgary has remained resilient — particularly for well-located facilities with efficient loading, ceiling heights, and highway access.
Calgary Industrial Market Performance: Q2 vs. Q3 2025
Market fundamentals improved notably in Q3 2025, reflecting strong tenant demand paired with a measured pace of new industrial construction.
Key Market Metrics
| Metric | Q2 2025 | Q3 2025 |
|---|---|---|
| Net Absorption (SF) | -983,700 SF | +2,582,246 SF |
| Average Asking Net Rent (PSF) | $14.52 | $15.18 |
| Average Market Net Rent (PSF) | $13.32 | $13.61 |
| Vacancy Rate | 4.34% | 3.88% |
| Availability Rate | 5.47% | 4.94% |
| Market Cap Rate | 7.02% | 6.92% |
Calgary Industrial Rents Overview
| Rent Type | Q2 2025 | Q3 2025 | Trend |
|---|---|---|---|
| Average Asking Net Rent (PSF) | $14.52 | $15.18 | ↑ Increasing |
| Average Market Net Rent (PSF) | $13.32 | $13.61 | ↑ Increasing |
Calgary Industrial Vacancy & Availability
| Metric | Q2 2025 | Q3 2025 | Direction |
|---|---|---|---|
| Vacancy Rate | 4.34% | 3.88% | ↓ Tightening |
| Availability Rate | 5.47% | 4.94% | ↓ Tightening |
Calgary Industrial Investment Metrics
| Metric | Q2 2025 | Q3 2025 | Market Signal |
|---|---|---|---|
| Market Cap Rate | 7.02% | 6.92% | Modest Compression |
Tightening vacancy and rising rents continue to favour landlords, particularly in established industrial nodes such as Southeast Calgary, East Shepard, and airport-adjacent logistics corridors.
Industrial Construction Pipeline Across Calgary and Rocky View County
New industrial development in the Calgary region remains active but disciplined, helping to support long-term market stability.
Notable projects include a 200,000 SF warehouse at East Shepard Industrial, which received permitting in mid-2025, and Dollarama’s Western Canada Distribution Centre, which continues advancing toward its planned 2027 completion.
In Rocky View County, approval of the Shepard Logistics Centre concept highlights the region’s growing importance as a long-term logistics and industrial growth area. Near-term development remains focused on moderate mid- and large-bay projects, reducing the risk of oversupply.
Major Industrial Deals and Leasing Activity in 2025
Several high-profile industrial transactions and developments underscored market confidence throughout 2025:
- Pet Valu’s 295,000 SF distribution centre opened in September
- Launch of YYC AeroNex, an airport-focused logistics and training hub
- Dollarama’s land acquisition, signalling future expansion and additional industrial absorption
Leasing demand remains strongest for modern large-bay industrial buildings with strong transportation connectivity. Sublease availability continues to be limited and is typically absorbed quickly when functional and well-located.
Calgary Industrial Market Outlook for 2026
Looking ahead, Calgary’s industrial real estate market is expected to maintain balanced conditions into 2026.
Leasing momentum should remain positive as occupiers benefit from improved space options while overall fundamentals stay stable. Asking rents are projected to level off with modest growth, and vacancy rates are anticipated to remain in the mid-4% range.
With financing costs stabilizing, investor interest in high-quality, well-located industrial assets in Calgary should persist — supporting steady asset values into the coming year.
What This Means for Industrial Buyers, Investors, and Tenants in Calgary
- For businesses and investors evaluating industrial real estate in Calgary, current conditions suggest:
- Strategic opportunities in emerging industrial areas such as East Shepard and Rocky View County
- Continued competition for modern, functional warehouse space
- Limited availability in prime logistics and distribution corridors
- Stable pricing and income expectations for investors
Written by Jamie Coulter – Vice President / Partner, Calgary Commercial Group / NAI Advent
For more detailed insights into Calgary’s industrial submarkets, access the Fall 2025 Calgary Commercial Real Estate Market Report here: >>>>
