Since the late 2010s and especially since mid-2020, ownership of commercial condo units has increased significantly in the Calgary market.
Several formats – office, industrial and retail/ medical are available and can be found in a variety of options from units in small, multi-tenant buildings to business parks – all of which provide distinct advantages such as fixed and clear costs, complete control over design within the premises, and notably, tax benefits not available to leasing tenants.
Beginning in 2019 and continuing through 2024 to date, this sector in Calgary has attracted an increasingly diverse group of occupiers and investors, with owners benefitting from overall cost-savings and growing equity. Demonstrating the ongoing attractiveness of this commercial product, approximately $174 million in transactions closed among commercial condominiums during the first half of 2024. This brought total investment in this type of asset to well over half of previous full-year investment, with retail/medical condominiums leading the way.
