Q1 2025 Report Out Now!

Calgary’s Downtown office market reported steady leasing activity in Q1 2025 with approximately 58,000 square feet of positive net absorption, largely driven by demand in the AA and A Class markets. Overall, the market demonstrated stability with continued demand for good quality, move-in ready office space.

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Q1 2025 closed with an overall vacancy rate of 27.14%, reflecting a marginal decrease of 66 basis points year-over-year. B Class vacancy has now fallen to 33.2%—its lowest level since Q3 2016, as many tenants continue to favour lower priced real estate. Three additional B Class buildings were removed from inventory this quarter, reducing total supply by approximately 315,000 square feet.

Despite ongoing tariff announcements from the Trump administration and the corresponding economic uncertainty, Colliers expects Calgary’s Downtown office market to remain resilient as key tenants in the energy sector stay focused on long-term demand fundamentals. The steady demand for high-quality space, landlords’ continued capital investment in building upgrades, and the renewed vibrancy returning to the Core through ongoing conversion projects and return to work mandates indicate optimism in the Downtown market.

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