A new report from CBRE Canada reveals that office space vacancies in Calgary are declining, with suburban areas leading the recovery. The report, released July 6, 2026, highlights a significant drop in suburban office vacancy rates, contributing to the city's overall market improvement.
Suburban Office Vacancy Decline
According to CBRE Canada, Calgary's suburban office vacancy rate fell by 2.1 percentage points in the second quarter of 2026, reaching 15.4%. This marks the largest quarterly decline among all Canadian office markets. The downtown core also saw improvement, with vacancy dropping 0.8 percentage points to 22.1%.
"Suburban office spaces are experiencing a strong recovery as companies seek more affordable and flexible options," said a CBRE spokesperson. The report attributes the trend to businesses downsizing or relocating from downtown to suburban areas with lower rents and better amenities.
Overall Market Recovery
Calgary's overall office vacancy rate decreased to 19.5% in Q2 2026, down from 20.4% in the previous quarter. This is the first full year of recovery since the pandemic disrupted the office market. CBRE noted that net absorption turned positive, with 450,000 square feet of space leased in the quarter.
"The core has carried the entire city," the report stated, but suburban areas are now contributing significantly. The trend is expected to continue as more companies adopt hybrid work models.
Impact and Outlook
The decline in suburban vacancy is boosting local economies, with increased demand for retail and services near office parks. However, downtown landlords face challenges, with some converting older buildings to residential or other uses. CBRE predicts further vacancy declines in the coming quarters, driven by economic growth and population increase.
Calgary's office market recovery mirrors national trends, with Canadian office vacancies averaging 12.5% in Q2 2026, down from 13.1% in Q1. The suburban segment is outperforming downtown in most major cities, according to CBRE.
