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Slower demand for speculative large distribution spaces contributes to softening market
After several years of significant deliveries of new industrial product, Calgary experienced a more modest year-over-year inventory growth of 1.4 million square feet (msf). While the end of 2024 marked the bottom of the last construction cycle, Calgary’s construction pipeline began to increase in 2025 but is expected to taper off again as several major projects deliver later this year. Although net absorption was only slightly positive in Q2 2025, a substantial increase is expected next quarter when Amazon moves into the nearly completed Interlink Logistics Park 2B. Hopewell recently closed on a partnership with 23 Capital to develop a 135,000-square-foot (sf) facility in Constellation Business Park.