Q3 2022 saw strong leasing activity in Calgary’s downtown office market that resulted in 177,725 square feet of positive absorption. The downtown office market has seen positive absorption in 3 of the past 4 quarters which has created a sense of confidence in the market.
- There are diminishing opportunities in Calgary’s downtown office market for tenants looking for quality, move-in-ready space.
- Although we forecast the head lease vacancy rate will decline over the next 12-18 months due to continued leasing activity and office building conversions, there is potential for new large blocks of vacancy to arise in certain buildings as numerous multi-floor legacy leases expire between 2023 and 2025.
- Despite certain energy companies exiting Calgary, there are still ample companies in the energy sector that continue to take a conservative but right-sized approach through office expansion.