What Makes a Commercial Property “Recession-Resistant” in Calgary

In uncertain economic times, some commercial properties handle downturns better than others. These are often called “recession-resistant” assets. In Calgary, certain property types and features help landlords and investors protect their income when the market dips.

Strong Tenant Demand

A recession-resistant property has tenants who are less likely to cut back or close during economic downturns. Examples include grocery stores, healthcare services, pharmacies, and essential retail. These businesses sell everyday goods and services that people still need, even when spending tightens. Properties with these tenants are generally more stable.

Low Vacancy and High Occupancy

Properties with low vacancy rates tend to weather recessions better. When a building is mostly leased, landlords have steady rent coming in and less risk of long empty periods. In Calgary, industrial properties — like warehouses and distribution centres — have stayed strong thanks to continued demand from logistics and e-commerce users.

Diverse Tenant Mix

Buildings leased to a mix of different tenants — such as a combination of retail, medical, and service businesses — spread risk. If one tenant type struggles, others may stay stable. Mixed-use developments that blend retail and office or residential help reduce reliance on any one economic segment.

Essential Services and Daily Traffic

Properties with businesses that serve daily needs tend to stay stronger during slowdowns. Grocery-anchored retail centres, medical clinics, and drugstores often continue drawing consistent traffic, which helps both landlords and co-tenants. Calgary neighbourhood retail nodes with strong local followings benefit from this trend.

Long-Term Leases with Stable Tenants

Longer lease terms give landlords predictable income, even if the economy softens. Recession-resistant properties often have tenants who are willing to sign multi-year agreements. This helps avoid frequent turnover, which can be costly and risky during downturns.

Location Matters

Good location is always important, but it’s especially critical for recession resistance. Properties close to major transportation, high population areas, or established retail corridors tend to perform better. Calgary’s strong suburban nodes and industrial hubs continue to attract tenants because of accessibility and market demand.

Quality of Building and Management

Well-maintained buildings with modern systems (HVAC, loading docks, parking) attract tenants who want reliable space and are more likely to stay through tough markets. Professional property management also helps keep tenants satisfied, reducing turnover.

In Calgary’s commercial market, recession-resistant properties are those with stable tenants, strong occupancy, essential uses, and strategic locations. These attributes help maintain rental income and value, even during economic slowdowns — making them attractive to investors and business owners alike.