Red Deer is quickly becoming Central Alberta’s go-to spot for affordable, high-visibility commercial real estate between Calgary and Edmonton.

Red Deer is quickly becoming a top contender in Alberta’s commercial real estate scene. Located along the Calgary–Edmonton Corridor, it offers excellent highway access, growing land supply, and competitive lease rates — all without the high costs of major urban centres.

In 2023, annexation opened up new highway-fronting land, unlocking opportunities for industrial, retail, and mixed-use developments. Industrial vacancy remains below 5%, keeping demand high, while lease rates between $9–$14/sq ft are far more affordable than in Calgary or Edmonton.

---

Industrial Market Fundamentals and Vacancy Trends

Industrial vacancy remains below 5% in 2024. Lease rates for commercial space for rent in Riverside and Northlands Industrial Parks sit between $9–$14/sq ft annually — significantly lower than Calgary or Edmonton.

Office and Retail Market Overview

Office vacancy has dropped to 19%, while retail stays strong between 5–8%, driven by local business growth and steady traffic along the QEII.

Economic and Demographic Drivers

With a 3.9% population increase across Alberta in 2024, Red Deer benefits from both interprovincial and international migration. The demand for commercial space is growing in tandem.

Development Activity and Permitting Trends

Industrial and institutional permits are up 7% and 24% in Central Alberta. While commercial permits are steady, there’s clear momentum in non-residential investment.

Conclusion

Red Deer is an ideal location for commercial real estate in Calgary corridor markets — offering affordability, access, and strong fundamentals.

👉 Ready to invest or lease? Contact Lapp Realty Commercial Group to learn more about commercial space for rent in Red Deer.