As Calgary’s economy grows and diversifies, GWL Realty Advisors (GWLRA) is seeing rising demand for renovated and amenitized office space.

The demand is particularly evident at GWLRA downtown properties like Watermark Tower and Gulf Canada Square, said the company. Many tenants are seizing lease expirations as opportunities to relocate to higher-quality buildings.

GWLRA used Co-Star data tools to differentiate between upgraded and non-upgraded A-class buildings. The findings confirm that tenants are gravitating toward both new AA towers and renovated class A properties with enhanced features, said GWLRA.

According to Wendy Waters, GWLRA’s vice-president of research, the most sought-after amenities are related to health and well-being. Such health-focused amenities include access to fitness centres, healthy food, showers, and secure bike parking. Updated lobbies also scored highest in GWLRA tenant-satisfaction surveys.

To meet evolving tenant needs, GWLRA recently completed major upgrades at Watermark and Gulf Canada Square. Improvements include revitalized lobbies, extensive fitness facilities, tenant lounges, and video-equipped meeting rooms—spaces that support both productivity and wellness, the company said.

Calgary has suffered the hardest office-market in Canada over the past 10-15 years. In many respects, the market is still reeling from the effects of a global energy downturn, the COVID-19 pandemic, changing hybrid-work patterns and a supply glut due to new towers that were in the construction pipeline before the impacts occurred.

The oversupplied downtown node has been particularly affected. But demand for new and upgraded office product in Alberta’s largest city has remained relatively strong, and the local sector has made large strides in recent months.

Cushman & Wakefied reported that overall Calgary office leasing activity spiked 60% year-over-year to 1.6 million square feet from 1 msf. Meanwhile, the overall average net asking rate rose slightly.

The GWLRA findings suggest that demand for new and upgraded office spaces should remain relatively vibrant going forward as tenants continue to turn away from outdated premises.

Pictured: Downtown Calgary office buildings and the Calgary Tower.

Rendering: Courtesy of GWLRA

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