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Leasing activity holds despite decrease in absorption
Calgary’s industrial inventory expanded by 3.4 million square feet (msf) over the past year, reflecting a steady pace of development. While speculative construction has slowed, build-to-suit projects now account for a growing share of the active pipeline, catering to tenants with more specialized requirements. Although Calgary’s streak of nine consecutive quarters of positive absorption has come to an end, leasing activity remains robust. Occupiers continue to show confidence in the region’s long-term value proposition. The current under-construction pipeline may hold steady if several proposed developments proceed as planned later in the year. Glenmore Yards is one such project currently in the planning stage that could bring 440,000 square feetof new inventory across three buildings. However, elevated construction costs tied to ongoing tariff pressures could lead to delays, cancellations or a further shift away from speculative builds.