Calgary Downtown Office Figures Q1 2026

‒    The downtown office market recorded its fifth consecutive quarter of negative net absorption, but vacancy declined by 50 basis points (bps) as inventory was removed for conversions.

‒    Sublease space continues to rise, reaching 2.3 million sq. ft. as mergers and acquisitions (M&A) in the energy sector, and a few large tenants right-sizing their space, have led to the highest amount of available sublease space since Q1 2023.

‒    Geopolitical conflict has led to a sharp rise in oil prices and will have a positive effect on earnings for the energy industry; however, it is unlikely to cause any notable increase in office demand amongst Calgary’s oil tenants.

‒    High-quality space continues to see the highest demand, with Class AA inventory recording 143,000 sq. ft. of net absorption in Q1 2026. Upgraded Class A and Class B buildings with recently completed modernization projects including the addition of amenities continue to outperform their peers.