- What Calgary has seen a drop in industrial construction
- Why The industry is trying to balance new inventory with absorption
- What next About 1.9m sq ft of industrial space is being built
The amount of industrial space under construction in Calgary last quarter was down 23% compared with the prior period, Avison Young said in a report released last week.
The 1.9m sq ft being developed across 13 projects is 5.6m sq ft less than the 2022 peak. The city is seeing its lowest ratio of existing inventory to under-construction inventory since 2019.
“This slowdown in construction reflects a more cautious approach to balancing supply with absorption,” the firm said, “suggesting a move toward greater market stability in the coming quarters.”
About 654,000 sq ft of new supply was delivered in the final quarter of 2024. Against the backdrop of 876,000 sq ft of absorption, the total vacancy rate was down 0.4% from the third quarter to 4.3%, and the availability rate rose 2.1% quarter over quarter to 7.9%.
Most of the new space was in distribution centres and warehouses geared toward e-commerce. Calgary’s quickly growing population is driving demand for such facilities.
Q4 saw 146 industrial sales totaling $463m, AY said, and 115 land transactions ringing in at $458m.
The biggest sale of the quarter was the $11.8m deal for 4884 and 4900 102 Avenue SE. The property comprised nearly 7 acres.
