Cap Rates & ROI in Alberta

Understanding cap rates and return on investment (ROI) is essential for anyone investing in Alberta commercial real estate. Alberta continues to offer some of the most competitive cap rates in Western Canada due to strong tenant demand, low taxes, and consistent business expansion across industrial, retail, medical, automotive, and service-based sectors. With Calgary and Edmonton both experiencing record population growth, increasing lease rates, and stable absorption across key asset categories, investors benefit from reliable income performance and long-term appreciation. Alberta’s business-friendly environment—no provincial sales tax, competitive operating costs, and strong consumer spending—makes the province a standout for commercial investors seeking strong cap rates, predictable cash flow, and favourable ROI.

Alberta’s industrial, retail, automotive, and medical markets consistently deliver cap rates in the 5%–8% range, depending on location, asset class, age of building, and tenant quality. With demand outpacing supply in several sectors—especially small-bay industrial and suburban retail—investors are entering a market supported by strong fundamentals, rising lease rates, and long-term tenant stability. Whether targeting steady monthly income, strategic value-add opportunities, or appreciation-based growth, Alberta offers an investor-friendly environment built for sustainable ROI.

Ready to take the next step? (587)-719-5523 / Get in touch or visit MohitDhillon.com with us today to discuss your commercial real estate goals or schedule a personalized property tour.

Understanding Returns

How Cap Rates & ROI Shape Alberta’s Investment Landscape

Alberta commercial real estate provides some of the strongest cap rates in Canada, supported by high tenant demand, growing populations, and favourable tax conditions. Industrial and retail assets continue leading the market with resilient occupancy, predictable rent growth, and essential-service tenant mixes. Cap rates vary by asset type and location, but Alberta remains more attractive than B.C. and Ontario due to lower operating costs and higher net yields.

KEY POINTS

• Typical cap rates range 5%–8%
• Highest returns in industrial & automotive
• Retail plazas provide stable long-term yields
• Alberta offers higher ROI vs. most provinces
• Strong demographic growth supports rent increases

Industrial Yields

Industrial assets deliver some of Alberta’s strongest cap rates due to low vacancy, high demand from trade and logistics users, and consistently rising lease rates.

Retail Stability

Suburban retail plazas anchored by essential-service tenants maintain stable income, predictable occupancy, and strong long-term appreciation potential.

Medical Security

Medical and professional spaces offer long-term leases, minimal turnover, and above-average rent durability, supporting reliable ROI over time.


Automotive Demand

Lube shops, tire shops, and repair bays generate higher cap rates due to recession resistance, high consumer dependency, and strong tenant profitability.

Quick Investor Snapshot

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• Standard caps: 5%–8%
• Best returns: Industrial + Automotive
• Lowest turnover: Medical & Professional
• Rising rents across all sectors
• Alberta leads Canada in population growth
• Low taxes = higher net income
• Top ROI drivers: lease rates + occupancy + low expenses

Deep Advisory: What Investors Must Know

Cap rates and ROI in Alberta outperform many Canadian markets due to strong fundamentals.

Industrial: Alberta industrial assets regularly trade at 5.5%–7% cap rates driven by tight vacancy, high tenant demand, and rapidly increasing rents across Calgary and Edmonton.

Retail: Suburban retail plazas show 5%–6.5% cap rates with essential-service tenants—restaurants, dental, medical, and daily needs retail—delivering reliable occupancy.

Medical/Office: Professional tenants (healthcare, dental, physio, veterinary, financial services) offer long-term leases and low turnover, generating 5%–6% cap rates with durable income.

Automotive/Service: One of Alberta’s most consistent performers. Cap rates between 6%–8% due to strong customer demand and low default risk from profitable operators.

Alberta’s economic drivers—including strong immigration, logistics expansion, manufacturing growth, and competitive operating costs—support both cap rate stability and long-term value appreciation. The absence of provincial sales tax (PST), a young workforce, and lower business expenses allow investors to achieve stronger net income compared to most major provinces.

Long-term ROI remains strong in established corridors, while new suburban communities generate high lease absorption—driving rent growth and increasing appraisal values over time.

Cap Rates & ROI in Alberta

Alberta Cap Rates & ROI Investments For Sale

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  • 450163 82 Street E in Rural Foothills County: Abilds Industrial Park Industrial for sale : MLS®# A1020082

    450163 82 Street E Abilds Industrial Park Rural Foothills County T0L 0A0
    Main Photo: 450163 82 Street E in Rural Foothills County: Abilds Industrial Park Industrial for sale : MLS®# A1020082

    450163 82 Street E Rural Foothills County T0L 0A0 Abilds Industrial Park

    $2,100,000
    Commercial
    Status:
    Active
    MLS® Num:
    A1020082
    INVESTMENT OPPORTUNITY ..........FULLY LEASED 12,000 SQ FT STEEL FRAME SHOP on 2.16 ACRES AVAILABLE FOR SALE . Property features CLEAR SPAN STEEL STRUCTURE BUILDING of 150' X 80' with 20 FT + CEILING / 3PH w/800 AMP /6 @ 14' X 14 ' OVERHEAD DOORS/ 4 @ 2pc washrooms / YARD is fully gravelled with SECURITY Chain link FENCE and YARD LIGHT /MAIN floor office of 760 sq ft PLUS MEZZANINE office of 830 sq ft with kitchenette with BIG WEST MOUNTAIN VIEWS /NO BUSINESS TAXES and LOW PROPERTY TAXES / LOCATED north of Cargill Foods with good access onto #2 HWY via Aldersyde or 498 th Ave OVERPASSES . More details
    Listed by Royal LePage Solutions
    LISTING DETAILS
    Mohit Dhilon

  • 594058 125B range Road in Whitecourt: Industrial for sale : MLS®# A1145019

    594058 125B range Road Whitecourt T7S 0A1
    Main Photo: 594058 125B range Road in Whitecourt: Industrial for sale : MLS®# A1145019

    594058 125B range Road Whitecourt T7S 0A1

    $3,400,000
    Commercial
    Status:
    Active
    MLS® Num:
    A1145019
    Build. Type:
    Mixed Use
    Thinking about investing in commercial Real Estate, this is the one to look at! This shop is fully leased to a AAA renter for 5 years. Premium shop, metal construction with a total of 13 front offices plus reception, kitchen / lunch room, filing and a board room. Some furnishings available. Two end drive through wash bays and four more pull through bays and two middle bays. Fenced parking at the rear with power. Yard is gravel packed. Located in Woodlands Business Park, beside the Whitecourt Airport. This property is a great investment. More details
    Listed by RE/MAX ADVANTAGE (WHITECOURT)
    LISTING DETAILS
    Mohit Dhilon

  • 6108 Bowness Road NW in Calgary: Bowness Office for sale : MLS®# A2086117

    6108 Bowness Road NW Bowness Calgary T3B 0E1
    Main Photo: 6108 Bowness Road NW in Calgary: Bowness Office for sale : MLS®# A2086117

    6108 Bowness Road NW Calgary T3B 0E1 Bowness

    $2,850,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2086117
    Build. Type:
    Free-Standing
    The stand-alone building was completed in 2015. Is currently used as a medical building, with 7893 sq ft on two floors, it is in excellent condition. Great location bordering a busy road and surrounded by a lot of residential complexes. It is secured, and air-conditioned, elevator, handicap access, and free parking surrounding the building. It is currently completely leased to many medical practitioners. Currently showing a 4.2% cap rate. More details
    Listed by CIR Realty
    LISTING DETAILS
    Mohit Dhilon

  • 1111 Kingsway Avenue SE in Medicine Hat: Office for sale : MLS®# A2168638

    1111 Kingsway Avenue SE Medicine Hat T1A 2Y1
    Main Photo: 1111 Kingsway Avenue SE in Medicine Hat: Office for sale : MLS®# A2168638

    1111 Kingsway Avenue SE Medicine Hat T1A 2Y1

    $1,700,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2168638
    Build. Type:
    Commercial Mix
    Quality investment opportunity in a high traffic commercial location. This 16,146 +/- SF professional complex offers premium visibility along Kingsway Avenue SE, one of Medicine Hat’s busiest corridors, with proximity to the downtown core and key retail districts. Anchored by established businesses such as Stantec, Dynamic Dance & Acrobatics, Encounter Chiropractic, and Sage & Willow Massage & Wellness, this investment includes a diversified tenant mix, ensuring stability and reduced vacancy risk. Almost fully leased, with the exception of two office suites and two co-work spaces, all tenants operate under a triple-net lease (excepting the co-work space), maximizing investor returns and minimizing landlord risk. Recent capital improvements include a modernized common area, washrooms, and kitchenette. Ample on-site parking provides significant value-add for tenants and their clientele, increasing the property’s competitive edge in the local market. This property is a well-positioned asset for investors seeking stable income with growth potential, backed by solid tenants and professional upgrades in a sought-after commercial location. More details
    Listed by AVISON YOUNG
    LISTING DETAILS
    Mohit Dhilon

  • 125 Main Street N in Airdrie: Downtown Retail for sale : MLS®# A2172159

    125 Main Street N Downtown Airdrie T4B 0R8
    Main Photo: 125 Main Street N in Airdrie: Downtown Retail for sale : MLS®# A2172159

    125 Main Street N Airdrie T4B 0R8 Downtown

    $10,880,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2172159
    Build. Type:
    Commercial Mix
    This is an excellent opportunity for a savvy investor to acquire the Airdrie Town Centre: a prime investment opportunity within the ‘Downtown Revitalization Plan Area’ making it a very desirable property to own in the short and long term. This property is located on Main Street with great curb appeal, drive by visibility, on site parking (59 stalls) and a brand-new elevator (2023) servicing the second floor. This building is 100% occupied with only one vacancy of 900 sq. ft. which the owner is actively marketing for lease. The property is tenanted by quality tenants with 74% of the building leased until March of 2033. Current Net Rental income is $622,750 + amortization recovery of $57,800 which equals Total Net Revenue of $680,600 for 2025. Over the next ten years the total net revenue is projected to average $737,900 per annum. Click the link below to download the brochure! More details
    Listed by Manchester Properties Inc.
    LISTING DETAILS
    Mohit Dhilon

  • 2611, 2613, 2615 14 Street SW in Calgary: Bankview Mixed Use for sale : MLS®# A2192967

    2611, 2613, 2615 14 Street SW Bankview Calgary T2T 3T9
    Main Photo: 2611, 2613, 2615 14 Street SW in Calgary: Bankview Mixed Use for sale : MLS®# A2192967

    2611, 2613, 2615 14 Street SW Calgary T2T 3T9 Bankview

    $2,388,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2192967
    Prime Land Assembly in SW Calgary’s Vibrant Core! Discover an extraordinary opportunity to own an expansive, consolidated commercial and mixed-use parcel in the heart of Calgary’s most dynamic inner-city neighborhoods—Bankview and Marda Loop. This rare C-COR1 zoned land assembly, strategically positioned along high-traffic 14th Street SW, offers unparalleled visibility and accessibility, just minutes from downtown, boutique shopping, dining hubs, and major transit routes. The combined lots (2611, 2613, 2615 14 Street SW) deliver a spacious 75’ frontage x 112’ depth, totaling approximately 8,395 sqft—a versatile canvas for visionary redevelopment. Unlock Transformative Potential: Zoned for mixed-use commercial and residential development, this site invites innovative concepts such as boutique retail spaces, modern office suites, luxury condos, or a dynamic hybrid of both. Capitalize on soaring demand in one of Calgary’s fastest-growing areas, where urban convenience meets community charm. With Marda Loop’s trendy cafes, fitness studios, and cultural hotspots at your doorstep, this location promises high foot traffic and enduring tenant appeal. Prime Connectivity: Direct access to Crowchild Trail, 17th Avenue SW, and downtown core ensures effortless commutes. Thriving Demographics: Situated in a walkable, amenity-rich area attracting young professionals, families, and upscale renters. Future-Ready Investment: Calgary’s urban intensification trends and infrastructure growth amplify this site’s long-term value. Seize this once-in-a-lifetime chance to shape SW Calgary’s skyline. Whether crafting a landmark mixed-use tower or a chic low-rise complex, this land assembly delivers limitless ROI potential. Act now—opportunities of this caliber rarely surface in such coveted locales! Don’t Wait—Transform Vision into Legacy. Contact us today to explore this unmatched development gem. More details
    Listed by Century 21 Bravo Realty
    LISTING DETAILS
    Mohit Dhilon

  • TWP RD 502 RR14 NE 8-50-1-4 in Rural Vermilion River, County of: Industrial for sale : MLS®# A2199887

    TWP RD 502 RR14 NE 8-50-1-4 Rural Vermilion River, County of T0B 0L0
    Main Photo: TWP RD 502 RR14 NE 8-50-1-4 in Rural Vermilion River, County of: Industrial for sale : MLS®# A2199887

    TWP RD 502 RR14 NE 8-50-1-4 Rural Vermilion River, County of T0B 0L0

    $3,050,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2199887
    Great investment property this 23,600 sq.ft. shop is located 1/4 mile west of RR13 on TWP RD 502 . Current lease in place till July 31, 2030. Shop area is 16,400 sq.ft with 2 controlled zones of in-floor heat, complete make up air system, 2-10,000 Ib. bridge cranes that run the full 120 feet, 3-18x20 OHD, 3-14x18 OHD, 1- 20x20 OHD and 600 amp power. Office area is 2 levels of 3600 sq.ft. Main office features large reception area with 8 offices, kitchen area, employee locker room. 2nd level has reception area, 20x30 board room and 8 offices. All offices have air conditioning. The complete 8 acres is fenced, packed and sloped to the perimeter. Pylon sign is included. Call for full information package. More details
    Listed by RE/MAX OF LLOYDMINSTER
    LISTING DETAILS
    Mohit Dhilon

  • 186007 Priddis Valley Road W in Rural Foothills County: Mixed Use for sale : MLS®# A2215153

    186007 Priddis Valley Road W Rural Foothills County T0L 1W1
    Main Photo: 186007 Priddis Valley Road W in Rural Foothills County: Mixed Use for sale : MLS®# A2215153

    186007 Priddis Valley Road W Rural Foothills County T0L 1W1

    $2,295,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2215153
    OWNER RETIRING after 35 years, presenting a great opportunity for an Investor or Owner Operator to acquire this unique property, serving the growing area in and around Priddis. In excess of $200,000 worth of IMPROVEMENTS have been made to the property in recent years! EXCELLENT RETURN : 9% CAP RATE on Net Income, before management fee (2024 & 2025 P & L)......... The General Store building was constructed in 1986 and comprises a GAS STATION, CONVENIENCE STORE, and LIQUOR STORE. A one storey frame structure on a full concrete basement, Energy efficient construction, 2x6 frame, clad with vertical cedar siding. A three-quarter verandah with wood rails wraps around the east and northerly elevations, giving the appearance of a rambling ranch style building..... The FUEL TANK was REPLACED in August 2011. The tank is double walled, composed of steel and fiberglass. CAPACITY is 65,000 litres, split into 3 compartments for regular, premium and diesel fuel. The mid-grade fuel is blended at the pumps during pumping. The GAS PUMPS were installed NEW at the same time as the tanks. GROUND WATER MONITORING WELLS are on site for testing. Monitoring sensors are located in pumps and in tanks to warn of any leaks, INCOM MONITORING SYSTEM is set up in the office.The ROOF was REPLACED with new asphalt shingles in November of 2018. The siding was stained in November 2021 and the eavestroughs and soffits were replaced at the same time. The HOT WATER TANK & FURNACE were REPLACED in 2023.......... The Plaza was constructed in 1992. The construction is on slab concrete with wood framing. There are 5 RETAIL BAYS ranging from 700 sq. ft to 2,000 sq. ft. for a total of approximately 6,839 sq. ft. Bay 5 and 4 (3,274 sq. ft) are leased out to a Restaurant and Pub. Bay 1 (717 sq. ft) leased out to a florist....... The second floor consists of 3 APARTMENTS measuring 1200 – 1378 sq. ft are all leased out. There are 2, 3-bedroom apartments and 1, 2-bedroom apartment. Each apartment has a fireplace with gas log lighter, one and half bathrooms, kitchen, a combination of a living room and dining room. Major appliances included in each apartment are washer, dryer, dishwasher, refrigerator, and stove........ The roof is asphalt shingle and was replaced 13 years ago. The flat side of the ROOF was REPLACED with MEMBRANE in June of 2024. The balcony DECKS were REPLACED with MEMBRANE in July 2016. NEWER HWT and FURNACES installed in residential apartments in September of 2020. HARDIE BOARD siding on Plaza installed in 2018. The ROOF TOP UNITS for commercial bays were REPLACED in November of 2024. The floors in the apartments were replaced in 2018. Permanent Xmas lights are installed on the edge of both the general store and plaza.....Property shows a FANTASTIC RETURN with even more UPSIDE to the right operator! More details
    Listed by MaxWell Canyon Creek
    LISTING DETAILS
    Mohit Dhilon

  • 11706 104 Avenue in Grande Prairie: Westgate Mixed Use for sale : MLS®# A2215898

    11706 104 Avenue Westgate Grande Prairie T8V 6K3
    Main Photo: 11706 104 Avenue in Grande Prairie: Westgate Mixed Use for sale : MLS®# A2215898

    11706 104 Avenue Grande Prairie T8V 6K3 Westgate

    $4,850,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2215898
    Seize the opportunity to own a stable, income-generating investment in the bustling Westgate area of Grande Prairie. 'Westgate Landing' is a multi-tenant commercial building is fully leased to an excellent mix of professional, office, health and beauty tenants. Situated in a high-visibility, high-traffic location just across from Canadian Tire, built in 2020, this property delivers immediate and consistent cash flow for investors. Whether you're a seasoned investor or looking to diversify your portfolio, this turnkey property offers everything you need: stability, cash flow, and upside potential. Priced at approx. 7.5% cap rate. More details
    Listed by RE/MAX Grande Prairie
    LISTING DETAILS
    Mohit Dhilon

  • 1801 3 Avenue S in Lethbridge: Upper Eastside Retail for sale : MLS®# A2224601

    1801 3 Avenue S Upper Eastside Lethbridge T1J 0L3
    Main Photo: 1801 3 Avenue S in Lethbridge: Upper Eastside Retail for sale : MLS®# A2224601

    1801 3 Avenue S Lethbridge T1J 0L3 Upper Eastside

    $1,850,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2224601
    Build. Type:
    Free-Standing
    Fully leased investment property for sale in an ideal central location: - Desirable central location with high traffic counts - 3rd Avenue frontage (19,700 VPD+) - Private parking lot with overflow street parking - Stand-alone building - Fully leased to a quality tenant Located along 3rd Avenue South (19,700 VPD+) the property receives excellent exposure. The site offers an easily accessible location, in close proximity to Highway 3 and Mayor Magrath Drive. Quality neighbouring businesses include Auto Value Lethbridge, Lethbridge Denture Clinic, Via Cibo, Moxies, Coulee Climbing, Freddie's Paint & Detail Boutique, and Gas King, and True North Axe Throwing. More details
    Listed by AVISON YOUNG
    LISTING DETAILS
    Mohit Dhilon

  • 11702 104 Avenue in Grande Prairie: Westgate Mixed Use for sale : MLS®# A2225063

    11702 104 Avenue Westgate Grande Prairie T8V 6K8
    Main Photo: 11702 104 Avenue in Grande Prairie: Westgate Mixed Use for sale : MLS®# A2225063

    11702 104 Avenue Grande Prairie T8V 6K8 Westgate

    $2,775,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2225063
    Introducing a rare opportunity to acquire a newly constructed, high-end commercial building situated in a sought-after location. This property is perfect for investors seeking stable income with upside potential. Built with quality, functionality, and aesthetics in mind, this property features a sleek architectural design, energy-efficient systems, and a layout that accommodates a variety of commercial uses. Two of the three units are already leased to reputable long-term tenants, providing immediate cash flow. The third unit is vacant and ideal for an owner-occupant or new lessee, offering further income growth. With generous on-site parking and excellent visibility, this property is well-suited for professional offices, medical, retail, or service-based businesses. It’s a turnkey asset in a thriving commercial corridor—perfect for investors and end-users alike. Don’t miss this chance to own a prime piece of commercial real estate with built-in stability and future potential. More details
    Listed by RE/MAX Grande Prairie
    LISTING DETAILS
    Mohit Dhilon

  • 5 Sunset Boulevard in Whitecourt: Multi Family for sale : MLS®# A2228412

    5 Sunset Boulevard Whitecourt T7S 1K8
    Main Photo: 5 Sunset Boulevard in Whitecourt: Multi Family for sale : MLS®# A2228412

    5 Sunset Boulevard Whitecourt T7S 1K8

    $1,890,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2228412
    Turnkey 18-Suite Apartment Building – Fully Rented & Income Generating | Prime Whitecourt Location. Rare opportunity to acquire a fully tenanted 18 unit multifamily across from the Whitecourt Hospital and steps from the Allan & Jean Millar Centre. Property includes 16 two-bedroom units & 2 one-bedroom units, strong tenants demand, and a high efficiency boiler (September 2022). Well maintained with 18 parking stalls on a 21, 860 square foot lot. Investment HIghlights: Immediate rental income with stable long-term tenancy, strong cash flow and equity growth, high demand in healthcare-adjacent area, tax-efficient multifamily investment. More details
    Listed by EXIT REALTY RESULTS
    LISTING DETAILS
    Mohit Dhilon
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Data was last updated March 22, 2026 at 12:05 PM (UTC)
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

These listings represent Alberta’s strongest cap rate categories—industrial bays, suburban retail, medical offices, and automotive service units. Each asset class offers reliable tenancy, competitive lease rates, and strong long-term ROI driven by the province’s demographic growth and business-friendly environment. Reviewing these examples helps investors understand how asset location, tenant type, and building quality influence yield performance and future appreciation.

Alberta continues to stand out as one of Canada’s most profitable commercial real estate markets, offering resilient cap rates, strong ROI, and consistent tenant demand. Whether you're focused on cash flow, long-term appreciation, or strategic portfolio expansion, Alberta delivers the fundamentals investors need for sustainable success.

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Find Calgary & Alberta commercial properties for sale/lease with real-time MLS® listings. From retail to industrial, warehouses and development land, explore opportunities across Calgary, Airdrie, Chestermere, and beyond.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.