Calgary Downtown Office Figures Q4 2025

‒    The downtown office market continues to be troubled by the fallout of M&A transactions in the energy industry, as consolidation and layoffs have led to the third-lowest annual net absorption levels in the past decade. Most notable in Q4 2025 was Cenovus’ acquisition of MEG Energy, which is likely to add additional sublease space to the Class AA market in coming quarters.

‒    Vacancy rose by 90 basis points (bps) overall in 2025, as lower demand was partially offset by the decline in supply caused by the removal of buildings from inventory for conversions.

‒    Nine additional conversion projects were announced as part of the Downtown Development Incentive Program in Q4 2025, with six located downtown and three in the Beltline.

‒    Calgary’s newly elected Mayor and City Council are expected to review the Downtown Development Incentive Program as part of upcoming budget deliberations and decide if more funding is to be allocated or if any changes will be made to the program.

‒    The Government of Canada and the Province of Alberta announced a Memorandum of Understanding (MOU) regarding Alberta’s energy industry, a move that could boost office demand in the long term, should certain hurdles be cleared.