Availability rises as significant headlease space returns to market amid lull in leasing
Office-using employment in Alberta increased year over year at an average of 6.8% in Q3 2025, largely driven by finance, insurance and real estate (FIRE) industries. However, leasing activity in Q3 2025 totaled just 0.5 million square feet (msf), well below the quarterly average. Office availability in Calgary dropped 130 basis points (bps) from the previous year to 20.7%. Within 2025, Q3 marked the beginning of rising availability, especially in Downtown submarkets. Telus Sky and Home Oil Tower added more than 0.5 msf of space this quarter as the latter’s former Canadian Natural Resources Limited (CNRL) space returned to market. Availability is likely to continue increasing, with additional CNRL space in Bankers Hall expected to return beginning in Q4. Calgary’s office conversion program continues to attract new projects, including Chevron Plaza and 441 5th. Sublease space increased slightly year over year and currently sits at 2.4 msf.