As anticipated, Q3 marked an upswing in activity following the end of summer, with overall vacancy decreasing to 24.87%. This resulted in a positive absorption of 272,978 square feet, driven largely by several key relocation transactions during the quarter. As sublease space, particularly in the Class AA and A markets continue to wane, we continue to see an upward pressure on headlease rates. Asking gross rental rates currently average just over $40.00 per square foot with AA gross rental rates hovering around $50.00 per square foot.
As the year draws to a close, we may still see notable transactions, particularly as several large tenants face lease expirations in 2025/2026. We anticipate more headlease space will be released to the market in Bankers Hall as CNRL continues their relocation plans out of the complex.
Click on the link to download our report and read more about our perspective on the Calgary Downtown market.