Strong leasing activity in Q1 driven by energy and supporting sectors
Office-using employment levels remained relatively flat in Alberta throughout Q1 2026; however, Calgary is set to experience further increases in engineering and other energy sector support services jobs as the industry reacts to instability in the Strait of Hormuz. Calgary posted an impressive quarter of leasing activity in Q1, driven by a variety of renewals, relocations and expansions. Office availability in Calgary rose 70 basis points (bps) from last year to 20.5%. Several large blocks of Downtown office space will become available for headlease over the next 18 months, and Downtown availability is expected to increase in the midterm. Consistent leasing (averaging about 1.0 million square feet (msf) per quarter over four years) and ongoing conversions have kept availability stable, but likely won’t prevent a longer-term rise. The 2.4 msf of sublease availability may increase as major tenants relocating to new space market their existing space ahead of lease expirations.