The Calgary commercial real estate market continued to gain traction in the first half of 2026, supported by strong demand for industrial, retail and multi-family assets and improving conditions in the office sector, according to Calgary-based Darrell Kolbjornsrud of REMAX Commercial Properties, who provided insight for the REMAX Canada Fall 2026 Commercial Real Estate Report. According to Kolbjornsrud, limited inventory remains a key constraint, while high construction costs continue to favour existing product over new development.
This local momentum directly reflects the overarching findings of the national REMAX report, which highlights a selective, income-focused recovery taking shape across key Canadian commercial markets. As investors across the country prioritize established properties with reliable cash flows and defensible fundamentals to hedge against financing constraints and replacement costs, Calgary stands out as a prime example of how strong regional economic drivers—including energy sector strength, population growth, and expanding logistics infrastructure—can sustain buyer demand and support values even amidst broader economic uncertainties.
Calgary Commercial Market Overview
Calgary Industrial Real Estate: Low Availability Drives Demand for Retrofits
Industrial remains one of the strongest asset classes, with availability sitting at 4.7 per cent* in Q2 2026, its lowest level since 2024, according to Altus Group. Demand is particularly strong for standalone buildings in the 5,000- to 6,000-sq.-ft. range, with buyers favouring older properties already equipped with costly features such as cranes, larger bays and upgraded infrastructure. With replacement costs running high, investment is increasingly being directed toward retrofitting existing buildings. Average industrial sale prices reached $271 psf* in Calgary and $331 psf* in surrounding areas in the first half of the year, up close to 10 per cent and 20 per cent respectively from year-ago levels. Industrial land continues to sell, although good development parcels are increasingly scarce.
Tight Retail Inventory and Construction Costs Drive Up Calgary Lease Rates
Retail space is also tight, with smaller strip plazas particularly sought after and space in new developments often leased before completion. Construction costs of $600 to $700 psf are placing further upward pressure on rents and reinforcing demand for existing product. Restrictive covenants in existing shopping centres are creating pent-up demand from fitness, medical, health and wellness users seeking space in established communities. Downtown retail remains softer, with parking continuing to pose a challenge.
Calgary Office Market Improves Driven by Class Upgrades and Residential Conversions
The office market is also moving in the right direction. Overall availability fell to 20.2 per cent* in Q2 2026 from a peak of 23.4 per cent* in Q3 2024, as tenants make lateral and upward moves from Class C and D space into better-located Class A and B buildings offering stronger amenities and attractive concession packages. Calgary’s office-to-residential conversion program has also helped remove obsolete inventory and gradually tighten supply. Some downtown buildings are offering exceptional rental value compared to historical levels, allowing tenants to upgrade without dramatically increasing occupancy costs.
Cash Flow and VTB Financing Drive Calgary Multi-Family Investment
Multi-family remains attractive, although a disconnect between vendor expectations and market values continues to limit some transactions. Average pricing in Calgary rose two per cent year over year to $310,928 per unit* in the first half of 2026, according to Altus Group. Well-priced portfolios continue to draw interest from well-capitalized buyers, with cash flow remaining paramount. Vendor take-back financing (VTB) is also appearing as higher borrowing costs complicate conventional financing.
Strong Economic Fundamentals Position Calgary Commercial Real Estate for Growth
Overall investment demand remains healthy, with buyers focused on assets offering reliable income and long-term value. Cap rates have tightened for some sought-after properties, although financing costs and bond yields remain concerns. Foreign capital has moderated, while domestic, private and institutional investors continue to pursue quality opportunities where fundamentals support the price. Calgary continues to exhibit several favourable market characteristics, including population growth and activity in the energy, service and distribution sectors. Limited supply and elevated replacement costs may continue to support asset values, although market conditions, financing costs and investor sentiment could affect future pricing.
*Source: Altus Group, Altus Data Studio
Frequently Asked Questions
Industrial remains one of Calgary’s strongest asset classes, with availability falling to 4.7 per cent in Q2 2026—its lowest level since 2024. Demand is particularly high for standalone buildings in the 5,000- to 6,000-sq.-ft. range, with high replacement costs driving investors toward retrofitting older properties equipped with specialized infrastructure.
Retail space in Calgary is very tight, with smaller strip plazas in high demand and new development space often leasing prior to completion. Construction costs of $600 to $700 per sq. ft. are putting upward pressure on lease rates, while restrictive covenants in established plazas create pent-up demand for medical, fitness, and wellness operators.
Calgary’s industrial availability rate reached 4.7 per cent in Q2 2026. Average industrial sale prices reached $271 per sq. ft. in Calgary and $331 per sq. ft. in surrounding areas during the first half of the year, representing year-over-year gains of nearly 10 per cent and 20 per cent respectively.
Calgary's overall office availability fell to 20.2 per cent in Q2 2026 from a peak of 23.4 per cent in Q3 2024. Recovery is supported by tenants upgrading from Class C and D spaces into better-located Class A and B buildings, as well as the city's municipal office-to-residential conversion program, which is removing obsolete inventory.
Multi-family assets remain attractive, with average pricing rising two per cent year over year to $310,928 per unit in H1 2026. Well-capitalized buyers are prioritizing cash flow, while vendor take-back (VTB) financing is increasingly being utilized to navigate elevated borrowing costs.
Calgary’s long-term commercial outlook is underpinned by the strength of Alberta’s energy sector, steady population and business growth, and expansion across service and distribution industries. Limited supply and high replacement costs continue to support property values.
About the Report
The REMAX Canada Fall 2026 Commercial Real Estate Report includes data and insights supplied by REMAX brokerages and analyzed by Point Blank Communications. REMAX brokers and agents are surveyed on market activity and local developments. Each REMAX office is independently owned and operated. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real REMAX Group's company-specific growth trends.
About the REMAX Network
As one of the leading global real estate franchisors, REMAX, LLC is a subsidiary of Real REMAX Group (NASDAQ: REAX) with more than 145,000 agents in nearly 8,500 offices and a presence in more than 120 countries and territories. REMAX Canada refers to REMAX Canada, Inc., which is a subsidiary of REMAX, LLC. Nobody in the world sells more real estate than REMAX, as measured by residential transaction sides. REMAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. REMAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network® and other charities. To learn more about REMAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from REMAX Canada, please visit blog.remax.ca.
Forward-Looking Statements
Some of the statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the stock repurchase authorization. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "potential", "project", and similar expressions or future or conditional verbs such as "could", "may", "should", "will" and "would". These statements inherently involve numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, Real REMAX Group expresses an expectation or belief as to future results or events, it is based on Real REMAX Group's current plans and expectations, expressed in good faith and believed to have a reasonable basis. However, Real REMAX Group cannot give any assurance that any such expectation or belief as to future results will be achieved or accomplished. Significant risk factors that may cause such a difference include, but are not limited to, slowdowns in real estate markets, economic and industry downturns; the inability to successfully integrate the companies; Real REMAX Group's ability to attract and retain agents and franchisees; Real REMAX Group's inability to successfully launch new products and features; Real REMAX Group's inability to scale while improving operating leverage, or inability to successfully execute its strategies; possible unfavorable results in legal proceedings; changes in laws, regulations or the regulatory environment affecting our business; disruption to our technology or cybersecurity incidents; and other risk factors detailed from time to time in our reports filed with the SEC, as well as in legacy Real's and legacy REMAX's reports filed with the SEC, including legacy Real's annual report on Form 40-F, reports on Form 6-K and other documents filed with the SEC, and legacy REMAX's annual report on Form 10-K, quarterly reports on Form 10-Q, reports on Form 8-K and other documents filed with the SEC, copies of which are available at www.sec.gov, and legacy Real's reports filed with Canadian securities regulators, including legacy Real's audited annual financial statements and annual management's discussion and analysis for the financial year ended December 31, 2025, Annual Information Form dated March 4, 2026 and quarterly financial statements and quarterly management's discussion and analysis for the period ended June 30, 2026, copies of which are available under legacy Real's SEDAR+ profile at www.sedarplus.ca.
