The narrative of Calgary’s commercial real estate landscape is shifting, and the suburbs are leading the charge.

According to our Colliers Q2 2026 Beltline and Suburban Office Report, a landmark transaction officially marks the largest suburban office lease in Calgary in nearly a decade. Negotiated by Colliers in partnership with Cresa Los Angeles, the deal accounts for 160,179 square feet leased by Kiewit Construction Services within the West Tower of the prominent Imperial Oil Campus at 505 Quarry Park Blvd SE, represented by CBRE.

I had the privilege of leading this deal for Colliers, and the transaction highlights a striking divergence between Calgary’s inner-city submarkets and its thriving suburban corridors—one defined by active expansion, highly amenitized spaces, and a sustained flight to quality.

A tale of two markets: Suburbs outpace the core 

The Q2 data illustrates a developing structural split across the city. While Calgary’s downtown office market momentum has been somewhat tempered by significant M&A activity in the energy sector, the suburban market has seen consistent leasing going back nearly twenty-four months. Driven by strong tenant demand for large-format requirements, the Calgary Suburban market recorded its ninth consecutive quarter of positive net absorption, adding 116,875 square feet in Q2 alone. Crucially, suburban vacancy has fallen below 14% for the first time in over 10 years, landing at 13.75%.

Quarry Park has been a primary catalyst for this momentum. In Q1 2024, the previous Imperial Oil campus was facing a 38.4% vacancy rate. Availability has dropped consistently, fuelled by successive major transactions, reducing vacancy down to 16.4%. Active market requirements suggest conditions will tighten even further by year-end.

In my view, the widening gap comes down to how businesses—particularly engineering and construction firms—choose to operate and where their workforce prefers to be.

Calgary has always been a commuter city, and the lifestyle preferences of modern engineering and professional firms lean heavily toward suburban office campuses. When you factor in the high cost and limited supply of downtown parking, alongside superior floor plate efficiency and operating costs in the suburbs, the value proposition for tenants becomes clear. 

The appeal of imperial oil campus 

The transaction at Imperial Oil Campus, a sprawling campus development originally built for Imperial Oil and now owned by private residential and commercial developer Dominium, represents the gold standard of suburban office space in Calgary; perhaps western Canada.

Offering a live-work-play environment reminiscent of thoughtfully designed corporate hubs in major U.S. nodes, Quarry Park provides occupiers with extensive amenities, including high-end conference facilities, cafeterias, walking paths along the Bow River, well resourced education and healthcare facilities, the largest childcare centre in Calgary, and immediate access to recreational infrastructure like the Remington YMCA.

For Kiewit, a rapidly expanding engineering and construction company, securing the entire West Tower was a strategic move to accommodate accelerated growth. The firm’s local footprint has scaled dramatically in recent years, fuelled by a booming regional economy and strong demand across Western Canada's industrial and energy support sectors. 

What this means for tenants 

Despite the remarkable activity and declining availability in submarkets, the broader suburban market still maintains over 2.9 million square feet of available space, meaning opportunities remain for proactive tenants. However, prime, turnkey large blocks of space are disappearing fast. 

For occupiers with upcoming lease expirations or expansion plans, my message is clear: do not wait. While tenant-favourable deals and strong landlord inducements are still available, prime options for large blocks are tightening rapidly. Getting ahead of the curve with a creative deal structure is more critical now than ever.

As Calgary continues its economic expansion, this transaction speaks to the narrative that the suburban market is no longer just an alternative to downtown—it is a destination for market leaders.