The view of downtown Lethbridge from the Park 'n Ride transit terminal. (Photo: Lethbridge News Now)

By David Opinko

‘Growing confidence’ in Lethbridge as businesses switch to owning over leasing

Oct 7, 2025 | 12:20 PM

A new report claims that business owners are growing increasingly confident in Lethbridge’s entrepreneurial environment.

Avison Young’s data shows that office users are switching from leasing spaces in the city to owning them.

They say office sales in 2025 are on pace to match last year’s strong performance, which saw transactions more than double compared to 2023.

Ashley Soames, Senior Associate at Avison Young’s Lethbridge office, says, “Office users are switching things up by choosing to own their space to better control costs and to hold onto the value invested into build-outs. In 2025, most office transactions have been sales.”

She adds that those sentiments were especially strong in professional services like medical and dental, where they viewed ownership as a strategic investment.

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“Office users are making long-term commitments to the Lethbridge market,” says Soames. “We’re seeing a strong preference for ownership, especially in suburban areas where demand continues to outpace downtown.”

The suburban vacancy rate for commercial spaces was 3.31 per cent in Q3 2025, which is down from 5.82 per cent one year ago.

The vacancy rate in the downtown area, however, increased from 11.33 per cent to 12.07 per cent.

The Avison Youth report notes that the declining downtown demand is largely due to older inventory, high build-out and construction costs, and a stronger demand for suburban locations.

It also means that business owners are prioritizing newly-built real estate in premium locations, even if that means paying higher prices.

As the city continues to grow, especially on the west side, Avison Young anticipates strong momentum in mixed-use developments that blend office, retail and residential spaces.

Learn more at AvisonYoung.ca