Calgary's downtown office vacancy rate has fallen below 30 per cent for the first time since the COVID-19 pandemic began, marking a significant milestone in the city's commercial real estate recovery, according to new data released by CBRE Canada on Friday.
The vacancy rate dropped to 29.7 per cent in the fourth quarter of 2025, down from a peak of 35.1 per cent recorded in early 2021. The improvement represents the strongest quarterly performance in Calgary's downtown office market since before the pandemic disrupted work patterns across the country.
"This is a clear turning point for Calgary's downtown core," said Jennifer Morrison, senior vice president at CBRE Calgary. "We're seeing a combination of factors driving this recovery, including the return of energy sector confidence, new tech companies choosing Calgary as their base, and a renewed focus on downtown revitalization efforts."
The recovery has been fueled by several major lease signings in recent months, including a 75,000-square-foot commitment by Suncor Energy in the Bow Tower and a 45,000-square-foot expansion by tech company Benevity in the Edison building. Additionally, several mid-sized energy firms have consolidated operations downtown rather than maintaining suburban offices.
Property managers report that companies are increasingly prioritizing downtown locations to attract talent and demonstrate corporate commitment to Calgary's urban core. The trend reflects a broader shift away from pandemic-era suburban office preferences back toward centralized business districts.
"We're seeing companies realize that downtown offers advantages they can't replicate in suburban locations," said Mark Thompson, property manager for several downtown office towers. "Access to transit, amenities, and the collaborative energy of the business district are drawing tenants back."
The improvement in vacancy rates has begun to stabilize rental prices, which had declined significantly during the pandemic. Average asking rents for Class A downtown office space now sit at $24.50 per square foot, up from a low of $21.75 in 2021 but still below pre-pandemic levels of $28.50.
Calgary's office market recovery outpaces several other major Canadian cities, where downtown vacancy rates remain elevated. The energy sector's rebound and Alberta's economic growth have contributed to renewed confidence in Calgary's commercial real estate market.
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Real estate experts caution that while the trend is positive, sustained recovery will depend on continued economic growth and companies maintaining their commitment to downtown office space rather than reverting to remote work arrangements.
The downtown office market's improvement aligns with broader revitalization efforts, including new residential developments, retail initiatives, and public space improvements designed to create a more vibrant urban core that attracts both businesses and residents.
City officials view the vacancy rate decline as validation of ongoing downtown investment strategies and expect continued gradual improvement through 2026, though they acknowledge that reaching pre-pandemic occupancy levels will likely take several more years of sustained growth.