CBRE

FIGURES|CALGARYDOWNTOWNOFFICE|Q42025

Evolvingenergyindustrycontinuesto

impactdowntownofficedemand

30.4%

VacancyRate

-260K

SFNetAbsorption

2.2M

SFSubleaseVacancy

Note:Arrowsindicatechangefrompreviousquarter.

MARKETSUMMARY

-ThedowntownofficemarketcontinuestobetroubledbythefalloutofM&Atransactionsintheenergyindustry,asconsolidationandlayoffshaveledtothethird-lowestannualnet

absorptionlevelsinthepastdecade.MostnotableinQ42025wasCenovus’acquisitionofMEGEnergy,whichislikelytoaddadditionalsubleasespacetotheClassAAmarketin

comingquarters.

-Vacancyroseby90basispoints(bps)overallin2025,aslowerdemandwaspartiallyoffsetbythedeclineinsupplycausedbytheremovalofbuildingsfrominventoryforconversions.

-NineadditionalconversionprojectswereannouncedaspartoftheDowntownDevelopmentIncentivePrograminQ42025,withsixlocateddowntownandthreeintheBeltline.

-Calgary’snewlyelectedMayorandCityCouncilareexpectedtoreviewtheDowntownDevelopmentIncentiveProgramaspartofupcomingbudgetdeliberationsanddecideifmorefundingistobeallocatedorifanychangeswillbemadetotheprogram.

-TheGovernmentofCanadaandtheProvinceofAlbertaannounceda

Memorandumof

Understanding(MOU)

regardingAlberta’senergyindustry,amovethatcouldboostofficedemandinthelongterm,shouldcertainhurdlesbecleared.

$17.17

PSFNetAskingRent

FIGURE1:DowntownOfficeMarketFundamentals

NetAbsorption&NewSupply(MSF)VacancyRate(%)

2.0

1.5

1.0

0.5

0.0

-0.5

-1.0

-1.5

-2.0

-2.5

30.40%

-916K

2016201720182019202020212022202320242025

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

-30.0%

-40.0%

-50.0%

NetAbsorptionNewSupplyVacancyRate

Source:CBREResearch,Q42025.

1CBRERESEARCH?2026CBRELimited

FIGURES|CALGARYDOWNTOWNOFFICE|Q42025

2CBRERESEARCH?2026CBRELimited

Marketfundamentals

Thedowntownofficemarketexperiencednegative260,000sq.ft.ofnetabsorptioninQ42025,bringingthetotalfor2025tonegative916,000sq.ft.Thismarksthelowestamountofannualnetabsorptionsince2021,andthethirdlowestoverthelastdecade.Vacancyroseby90bpsontheyear,aslossesfromlowerdemandwerepartiallyoffsetbytheremovaloffivedowntown

buildingsfrominventoryin2025,whichhadmetCBRE’scriteriaforremovalduetobuildingconversion.

2025’sdownwardtrendindemandinthedowntownofficemarketcontinuestobedrivenalmostentirelybytheevolvingenergyindustry,whichsawvolatilepricesforoilandnaturalgas,large-scaleindustryconsolidation,andemployeelayoffsfromseveralofCalgary’slargesttenants.

ThemostnotableconsolidationtransactioninQ42025wasCenovus’acquisitionofMEG

Energy.AsMEGoccupiesover140,000sq.ft.atEauClaireTower,thisislikelyanothersourceofsubleaseavailabilityinthecomingquarters.Thistransactionjoinsalonglistoftransactionsthatcausedasignificantdeclineinoccupancyin2025,includingCNRL’sacquisitionof

Chevron’sCanadianAssets,WhitecapResources’acquisitionofVerenInc.,andseveralothers.Thiswillcontinuetobeasignificantchallengein2026,withthefalloutfromKeyera’sacquisitionofPlains’CanadianNGLbusiness,SunocoLP’sacquisitionofParklandCorporation,Cygnet

Energy’sacquisitionofKiwetinohk,andOvintiv’sacquisitionofNuVistaEnergyallbeingtransactionsthatcouldreturnadditionalspacetothesubleasemarketin2026.

TheClassAAmarketrecordednegative763,000sq.ft.ofnetabsorptionin2025,thelowesteverrecorded,asitwasparticularlyvulnerabletothechangingenergyindustrydynamicsandsubsequentreductionofofficedemand.ThismarksareversaloffortunefortheClassAA

market,whichhadseenatotalof699,000sq.ft.ofnetabsorptionfrom2022-2024.ClassAAvacancyroseby370bpsontheyearto19.9%,thehighestithasbeensinceQ22018.

FIGURE2:HeadleaseandSubleaseVacantSpace(MSF)

10.4M

12.0

10.0

8.0

6.0

4.0

2.2M

2.0

0.0

2016201720182019202020212022202320242025

HeadleaseVacancySubleaseVacancy

Source:CBREResearch,Q42025.

FIGURE3:DowntownClassAALeasingFundamentals

NetAbsorption&NewSupply(000’s)VacancyRate(%)

1,500

1,200

900

600

300

0

-300

-600

-900

ll,

19.9%

-763K2016201720182019202020212022202320242025

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

NetAbsorptionNewSupplyVacancyRate

Source:CBREResearch,Q42025.

FIGURES|CALGARYDOWNTOWNOFFICE|Q42025

3CBRERESEARCH?2026CBRELimited

Changestoenergypolicy

Q42025sawtheGovernmentofCanadaandtheGovernmentofAlbertareachan

MOU

regardingAlberta’senergyindustry,whichhaspotentiallyopenedthedoorforanewoilpipelinetoCanada’sWestcoast.ThepipelinewouldprovidearouteforatleastanadditionalonemillionbarrelsadayofAlberta’sbitumentothecoastofBritishColumbia,whereitwouldbeexportedtovariousmarkets.Thisadditionalexportcapacitycouldleadtoasignificantincreaseinoil

productionintheprovince,leadingtoadditionaljobsandanincreaseinofficedemandfrom

downtownCalgary’senergy-dominatedtenantbase,ifandwhentheprojectiscompleted.Thispotentialprojectstillfacesnumerouskeyhurdles,includingcollaborationwiththeGovernmentofBritishColumbiaandFirstNationscommunities,aswellasfindingaprivatepartnertobuildandoperatetheproject.

Additionally,asecondliquefiednaturalgas(LNG)exportfacilitywasreferredtotheMajorProjectsOffice(MPO)forfast-trackingthisquarter.KsiLisimsLNG,locatedinPearseIsland,BC,isanticipatedtobeCanada’ssecond-largestLNGexportfacilityuponcompletion,withaprojectedcapacityof12milliontonnesofLNGperyear.Thisproject,alongwithLNGCanadaPhaseII,whichwasreferredtotheMPOinSeptember,wouldsignificantlyenhanceCanada’stotalLNGproductionandexportcapabilities,potentiallydrivinggrowthamongdowntown

Calgary’snaturalgas-focusedtenants.

Conversions

EauClairePlaceIIandTheHat@Ninth(FormerlyTeckPlace)werebothcompletedthis

quarter,bringingthetotalnumberofprojectscompletedundertheDowntownDevelopment

IncentiveProgramtoeight.NineadditionalconversionprojectswereannouncedaspartoftheDowntownDevelopmentIncentivePrograminQ42025,withsixlocateddowntownandthreeintheBeltline.Thisbringsthetotalamountofprojectsfromtheprogram,eitherinthepipelineorcompleted,to21,plusafewadditionalprojectsthatexistoutsideoftheprogram.Calgary’s

newlyelectedMayorandCityCouncilareexpectedtoreviewtheprogramaspartofupcomingbudgetdeliberationsanddecidewhethermorefundingisallocatedorifanychangeswillbe

madetofundinggoingforward.

FIGURE4:QuarterlyNetAbsorptionbyBuildingClass(000’sSF)

100

50

0

-50

-100

-150

-200

-250

-246K

150

55K

-15K

-54K

ClassAAClassAClassBClassC

Source:CBREResearch,Q42025.

FIGURE5:NotableQ42025Transactions

Tenant

Building

Size(SF)

Keyera

SuncorEnergy

Centre–East

210,000

ATBFinancial

SuncorEnergy

Centre–East

130,000

GibsonEnergy

JamiesonPlace

84,000

TourmalineOil

BowValley

SquareIII

39,000

AIMCo

FifthAvenue

Place-West

35,000

InvicoCapital

Corpration

Watermark

Tower

15,000

Source:CBREResearch,Q42025.

FIGURE6:NotableOfficeBuildingConversionsUnderConstructionorPlanned

BuildingName

Size(SF)

Status

PalliserOne

400,000

Under

Construction

HanoverBuilding

217,000

Under

Construction

AtriumI/II

206,000

Planned

800Sixth

205,000

Under

Construction

EauClairePlaceII

158,000

Complete

606Fourth

123,000

Under

Construction

TeckPlace

110,000

Complete

FiveTenFifth

109,000

Under

Construction

BarronBuilding

100,000

Under

Construction

TaylorBuilding

64,000

Under

Construction

10008AvenueSW

45,000

Under

Construction

Source:CBREResearch,Q42025.

FIGURES|CALGARYDOWNTOWNOFFICE|Q42025

4CBRERESEARCH?2026CBRELimited

FIGURE7:DowntownOfficeMarketFundamentals

Submarket

BuildingClass

Inventory(SF)

VacantSpace(SF)

VacancyRate(%)

NetAbsorption(SF)

YTDNetAbsorption(SF)

SubleaseVacancy(SF)

UnderConstruction(SF)

CentralCore

CentralCoreTotal

AA

A

B

C

14,086,596

2,779,396

19.7%

50,651

-520,846

642,601

0

8,867,882

2,659,030

30.0%

105,554

105,857

305,526

0

4,571,386

1,942,680

42.5%

-147,033

-354,554

20,491

0

969,182

248,392

25.6%

-20,024

-13,253

0

0

28,495,046

7,629,498

26.8%

-10,852

-782,796

968,618

0

Mid-WestCore

Mid-WestCoreTotal

AA

A

B

C

1,161,605

364,197

31.4%

-140,995

-134,667

287,898

0

2,197,095

1,173,001

53.4%

-46,914

70,791

561,242

0

3,540,829

1,451,582

41.0%

-94,852

-15,160

30,764

0

1,596,575

727,404

45.6%

6,701

34,539

0

0

8,496,104

3,716,184

43.7%

-276,060

-44,497

879,904

0

WestEnd

WestEndTotal

A

B

C

146,343

8,155

5.6%

-3,192

-3,192

0

0

413,000

59,853

14.5%

0

47,704

6,250

0

500,451

154,627

30.9%

3,798

-18,536

5,460

0

1,059,794

222,635

21.0%

606

25,976

11,710

0

EastEnd

EastEndTotal

AA

B

C

1,900,000

271,125

14.3%

35,982

-107,355

271,125

0

1,162,468

530,663

45.6%

-4,510

31,499

53,143

0

294,176

200,299

68.1%

-5,413

-38,485

5,413

0

3,356,644

1,002,087

29.9%

26,059

-114,341

329,681

0

DowntownTotal

41,407,588

12,570,404

30.4%

-260,247

-915,658

2,189,913

0

Footnote:CBRECalgary’smethodologyforremovingbuildingsfromofficeinventoryduetoconversionrequiresthecompleterelocationofallofficetenantstoalternativepremisesand100%vacancyofthebuildingpriortoremoval.Thisapproachmaydifferslightlyfrommethodologiesusedbyothermarketsurveysandasaresultinventoryandvacancyfiguresmayvarywhencomparedtocompetitorreports.

Source:CBREResearch,Q42025.

FIGURES|CALGARYDOWNTOWNOFFICE|Q42025

MarketAreaOverview

Contacts

LaneBurton

SeniorResearchAnalyst/p>

lane.burton@

Definitions

Inventory(SF):Thetotalofficearea(sq.ft.)ofcompetitivebuilding(s)inthemarket.

OverallVacancyRate:TotalVacantSpacedividedbyinventory.Calculatedasapercent.

VacantSpace(SF):ThesumofDirectandSubletSpacethatcanbeimmediatelyoccupied,typicallyincludingupto180daysfollowingquarterclose.

HeadleaseVacancy(SF):Spaceofferedforleasedirectlybythebuildingownerorlandlord.

SubleaseVacancy(SF):Spaceofferedforleaseindirectlybyatenant.

NetAbsorption:ThechangeinOccupiedSpacefromonequartertothenextasameasureofmarketactivity.IncludesPre-leasedspaceupondeliveryasNewSupply.

OccupiedSpace:Totalin