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Rental rates soften as positive absorption tapers off; next wave of development set to begin in 2025
Calgary’s inventory has increased by 3.8% year over year, delivering 5.5 million square feet (msf) of new inventory. The city has now experienced nine consecutive quarters of positive absorption, with newly-constructed assets and pre-leasing activity contributing significantly. Prominent examples include the recently delivered and leased Cross Iron Distribution Centre 2 and the upcoming pre-leased 660,000-square-foot (sf) Interlink Logistics Park Building 2B. The construction pipeline is set to increase in 2025, as several major projects have completed groundworks and will begin vertical construction once the ground thaws. Points North and Glenmore Yards are two such projects anticipated to start construction in 2025.