Calgary's iconic skyline is evolving. Though the last four or so years have brought a slew of uncertainty, skilled labour shortages, supply chain issues, and equipment shortages – Calgary commercial construction continues to see unprecedented growth and development.

Indeed, as of March 2024, the monthly building permit value stood at a record high of $821.5 million, surpassing February by about 200 million dollars. This is just one of the data points we see that illustrates the demand to build! To look at a different perspective, Calgary has 23 billion dollars in active commercial construction projects right now, which comprises 15% of the total project value across Alberta.

In this piece, we’ll dive a little deeper into why this boom is so prevalent, discuss whether it’ll follow the “boom and bust” cycle, and what you need to know if you’re looking to build a commercial space this year.

Breaking the “Boom and Bust” Cycle

Calgary has quite the pioneering history. In the 1970s, oil prices were on the rise and, tale as old as time, every Tom, Dick, and Harry decided to strike out and head west to find their fortunes. Many did, and between interprovincial migrancy and growing families, the population soared.

As a result, housing prices went far north, and stocks rose – as did the need for commercial space. Everyone wanted to invest. Then, the bust happened. Oil prices plummeted and so did job availability. The shine wore off, and many who came to the province in search of a new life went back to Ontario or the Maritimes.

This cycle has happened time and again throughout the 80s, 90s, and 2000s – and earned Alberta a reputation for having a yo-yo economy.

What has changed?

Diversification is the key. Now, Calgary looks to its growing finance, tech, creative, and research sectors – as well as the energy sector, of course – for stable growth instead of a “boom”.

Additionally, we’ve learned along the way. To help mitigate these boom and bust cycles, Calgary's government has implemented various pro-business policies, including tax incentives and streamlined permitting processes, to attract investors and facilitate commercial development. Understanding these policies can help navigate the regulatory landscape and expedite project timelines.

Accommodating Changing Work Environments

The way we work is evolving, and commercial construction is adapting in response. The rise of remote and flexible work arrangements has reshaped the demand for office spaces. Businesses are seeking more flexible layouts and amenities that support hybrid work models and foster collaboration.

This shift has significant implications for the design and construction of commercial properties, with an increased emphasis on adaptable spaces that can accommodate changing needs.

Community Expansion and CRU Demand

As Calgary's commercial construction boom propels economic growth, the necessity for Commercial Retail Units (CRUs) becomes increasingly apparent.

Retail outlets, dining establishments, and service providers are fundamental drivers of economic activity. With the surge in commercial construction, there's a heightened demand for these establishments to cater to the burgeoning population and growing consumer base.

As the city's population swells and disposable incomes rise, there's a corresponding increase in demand for retail and service amenities. CRUs play a pivotal role in meeting these needs, offering a diverse range of goods and services that enhance residents' quality of life and contribute to the city's economic vitality.

Leveraging Prefabricated Steel

Prefabricated steel buildings offer significant time and cost savings compared to traditional construction methods.

The off-site fabrication process allows for concurrent site preparation and building manufacturing, which reduces overall construction timelines and minimizes disruptions to adjacent properties.

Closing Thoughts

Calgary's current commercial construction boom isn't just an accident, or an illusion; it's the result of careful planning, strategic investments, new initiatives and tax assistance, and a shift in mindset. Diversification has been a buzzword in Alberta for years, but now, we see that it's taking on a tangible form.

Connect with the SWMW team today!

Whether you’re looking to get started with a Calgary commercial construction project or elsewhere in Alberta, consider the SWMW team for an unmatched customer experience and efficient and timely project execution.

Get in touch with the Southwest and Midwest Design & Construction team – and we’ll help bring your project to life.

Use our handy online quote request tool or fill out our convenient contact form and a member of our team will be in touch as soon as possible!