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

Let us help you through the process!

• 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

Forgot password Extend Verify Contact
Save search Reset Hide filters
1-12/338

  • 4706 43 Avenue in Forestburg: Business for sale : MLS®# CA0177964

    4706 43 Avenue Forestburg T0B 1N0
    Main Photo: 4706 43 Avenue in Forestburg: Business for sale : MLS®# CA0177964

    4706 43 Avenue Forestburg T0B 1N0

    $850,000
    Commercial
    Status:
    Active
    MLS® Num:
    CA0177964
    Major Bus.:
    Food & Beverage
    Floor Area:
    5,070 sq. ft.
    looking for that turn key business opportunity?well here it is! recycling bottle and electronic depot, in business for 20 years, plus a successful cafe & ice cream shop operating for 5&6 years, both businesses have a steady customer base, highway location and are located in a well cared for tin clad building, air-conditioned cafe & ice cream shop are in the front of the building and the recycle depot in the back, the main floor is 4225 sqft with an 845 sqft upper floor that with some renos could be a revenue generating rental suite or living accommodations, the recycle depot has a mezzanine,12x14 overhead door & covered drive through for loading & unloading, the depot comes with all equipment including a Toyota forklift, as well as a 2019 f-150 truck with canopy, cafe & ice cream shop boast a fully operational kitchen & dining area and comes with all equipment and furniture, front patio for customers to enjoy, 40' seacan for extra storage, back lane for shipping/receiving as well as plenty of parking space throughout to serve both businesses, pride of ownership shows throughout, building and equipment are very clean and well maintained, all building and planning have been done according to code, all you need to do is step inside and you'll be the proud owner of your own business More details
    Listed by Royal LePage Rose Country Realty
    LISTING DETAILS
    Mohit Dhilon

  • 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

  • 501 & 509 Main Street in Falher: Multi Family for sale : MLS®# A1079650

    501 & 509 Main Street Falher T0H 1M0
    Main Photo: 501 & 509 Main Street in Falher: Multi Family for sale : MLS®# A1079650

    501 & 509 Main Street Falher T0H 1M0

    $600,000
    Commercial
    Status:
    Active
    MLS® Num:
    A1079650
    INVESTMENT OPPORTUNITY!! Package Sale! 501 Building -6 Suites – Walk-Up Two Story Building in great condition, 5 of the 6 units are fully renovated. FOUR Suites that have - 1 bedroom/1 Bathroom. ONE Suite that has - 2 Bedroom/1 Bathroom. And ONE suite that has - 3 Bedroom/1 bathroom + a loft. The boiler system is all brand new. 509 Building- 6 Suites Walk up Two-Story Building, 3 units have 1 Bedroom/1 Bathroom, could easily add value by renovating the other 3 units. Paved parking stalls plus lots of on-street parking. There is also a garage for maintenance tools. All units include a fridge & stove. Shared Laundry in Building 501. Low maintenance yard. Multi-family rental opportunity to take advantage of. Small enough property that you can maintain and monitor yourself. Call today to take a look!! More details
    Listed by Sutton Group Grande Prairie Professionals
    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

  • 52510 Anderson Road in Rural Yellowhead County: Mixed Use for sale : MLS®# A1174819

    52510 Anderson Road Rural Yellowhead County T7E 1T9
    Main Photo: 52510 Anderson Road in Rural Yellowhead County: Mixed Use for sale : MLS®# A1174819

    52510 Anderson Road Rural Yellowhead County T7E 1T9

    $1,200,000
    Commercial
    Status:
    Active
    MLS® Num:
    A1174819
    Build. Type:
    Mixed Use
    An opportunity to own an incredible well established business on 8.48 acres in the gorgeous foothills of Alberta. Andersons Dog Kennels & Grooming Ltd. is nestled between Hinton and Edson, allowing the business to capture clientele en-route from Edmonton to Jasper and locals from the Hinton, Edson and Jasper area. The dog kennel facilities can comfortably accommodate more than 120 dogs at one time when fully staffed. It offers space for large dogs, small dogs, puppy land, overflow /special needs, as well as a kitty land. There is also a licenced crematorium on site . Andersons Dog Kennels & Grooming Ltd. has established a great reputation and is known to provide exceptional care for animals, the vibe and energy of the space leaves animal families feeling confident their furry friends are in great hands. The property also has a 3 bedroom, 2 bathroom dwelling (built in 1991) allowing staff to reside onsite and is currently collecting a solid revenue. The main building 4020sqft ( built in 2005) is home to puppy land, kitty land, overflow (or special needs space), a grooming facility, laundry, retail, office space and an abundance of storage. The dog kennel building ( built in 2007) is 2132 sqft and offers both indoor and outdoor space. The crematorium is the newest facility on site (12 years old) and is a sacred space tucked near the gazebo. There is a small unserviced cabin " The Bunkie" on the property that is a great place to enjoy a coffee before the days work begins. This may be a thriving business but it has been grown from a passion and the books are a reflection of that! It is an opportunity not to be missed! Seller will consider financing the property. More details
    Listed by ROYAL LEPAGE EDSON REAL ESTATE
    LISTING DETAILS
    Mohit Dhilon

  • 6108 Bowness Road NW in Calgary: A-478 Office for sale : MLS®# A2086117

    6108 Bowness Road NW A-478 Calgary T3B 0E1
    Main Photo: 6108 Bowness Road NW in Calgary: A-478 Office for sale : MLS®# A2086117

    6108 Bowness Road NW Calgary T3B 0E1 A-478

    $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

  • 6901 96 Street in Clairmont: Industrial for sale : MLS®# A2095062

    6901 96 Street Clairmont T8X 5B3
    Main Photo: 6901 96 Street in Clairmont: Industrial for sale : MLS®# A2095062

    6901 96 Street Clairmont T8X 5B3

    $6,000,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2095062
    This occupied industrial property is being sold with a tenant in place and features amazing exposure with 12.85 acres of frontage zoned RM-4 on Highway 43. The fully serviced fenced and graveled property features 14,280 SF of heated and fully enclosed space with an additional 33,688 SF of cold storage with a total of three 10-ton cranes. This includes a well laid out and beautifully finished 3,600 SF office consisting of an additional 3,600 SF basement situated on an ICF foundation with great curb appeal. The fully enclosed "Test Shop" offers a 10-ton crane and 30' hanger door, air compressor, and Hotsy unit. Call your Commercial Realtor© for more information or to book a showing today. More details
    Listed by RE/MAX Grande Prairie
    LISTING DETAILS
    Mohit Dhilon

  • 3624 36 Avenue in Whitecourt: Industrial for sale : MLS®# A2109210

    3624 36 Avenue Whitecourt T7S 1N9
    Main Photo: 3624 36 Avenue in Whitecourt: Industrial for sale : MLS®# A2109210

    3624 36 Avenue Whitecourt T7S 1N9

    $1,890,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2109210
    THIS 6.37 ACRE SITE IS FULLY FENCED AND GATED SITUATED ON 3 SEPARATE TITLED LOTS . THE SHOP SIZE IS 10,324 SQ FT AND HAS A 80 FT DRIVE THROUGH BAY WITH 16FT OVERHEAD DOORS. THE FREESTANDING 2880 SQ FT OFFICE COMPLEX HAS 10 MODERN OFFICES AND A LARGE CONFERENCE ROOM. More details
    Listed by RE/MAX ADVANTAGE (WHITECOURT)
    LISTING DETAILS
    Mohit Dhilon

  • 1501 1 Street SE in Calgary: A-003 Retail for sale : MLS®# A2118801

    1501 1 Street SE A-003 Calgary T2G 2J4
    Main Photo: 1501 1 Street SE in Calgary: A-003 Retail for sale : MLS®# A2118801

    1501 1 Street SE Calgary T2G 2J4 A-003

    $2,500,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2118801
    Build. Type:
    Free-Standing
    Great Opportunities! Future Mixed-Use Development Site on Corner Location with Interim holding Income. Corner Lot of Prime location, steps to stampede grounds, BMO centre, 17th avenue shops and restaurants, transit and casino. CC-MHX ZONING ALLOWS FOR 3 TIMES SITE COVERAGE WITH NO LIMITATION ON BUILDING HEIGHT. This freestanding retail building located on a corner lot (1st street South bound Macleod Trail) and 15th Ave SE in the heart of Victoria Park. The existing building is 2,132 SF WITH 7 parking stalls. There is potential to build high rise and low rise building if unified with neighbor's vacant lot. Pls. see the photos for 2 possible developments options. NEW UPDATES: This building has been fully renovated to professional SPA with many upgrades. 3 professional rooms added in the main floor with brand new gorgeous shower, new flooring, new furnace and new heat water tank. This brings nice business income. More details
    Listed by Century 21 Bamber Realty LTD.
    LISTING DETAILS
    Mohit Dhilon

  • 5007 50 Street in Eckville: Hotel/Motel for sale : MLS®# A2124061

    5007 50 Street Eckville T0M 0X0
    Main Photo: 5007 50 Street in Eckville: Hotel/Motel for sale : MLS®# A2124061

    5007 50 Street Eckville T0M 0X0

    $589,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2124061
    Exciting opportunity! Potential Sport-Bar location in an active Central Alberta tavern - hotel - and restaurant, with an equipped liquor store included. The 160 seat tavern with 8 VLT terminals in a VLT lounge and separate gaming area with pool table & dance floor, operates as Billy Zee's, and includes all furnishings. This Main Street 8 room hotel and tavern, restaurant, and liquor store is a tremendous business opportunity for an enterprising couple or two couples. The attractive tavern and bar seats 160 patrons in an up to date setting with automated liquor tally and dispensary, and also serves snacks, (inventory to be sold at cost). The tavern and restaurant share a full kitchen including grills, deep fryers, pizza ovens, freezers and coolers, and dish washing unit. The adjoining restaurant seats 70 patrons, and the price includes all tables, chairs, and dish-ware. The self contained and adjoining liquor store has separate entry and is fully equipped with shelving, cash register, electronic computer inventory scan, (inventory to be sold at cost). Located in an active Central Alberta town that has a strong agricultural community complimented by busy oilfield and trucking ventures. Sellers are retiring. More details
    Listed by Royal LePage Tamarack Trail Realty
    LISTING DETAILS
    Mohit Dhilon

  • 6B 380 Mackenzie Boulevard in Fort McMurray: Mackenzie Park Industrial for sale : MLS®# A2116428

    6B 380 Mackenzie Boulevard Mackenzie Park Fort McMurray T9H 4C4
    Main Photo: 6B 380 Mackenzie Boulevard in Fort McMurray: Mackenzie Park Industrial for sale : MLS®# A2116428

    6B 380 Mackenzie Boulevard Fort McMurray T9H 4C4 Mackenzie Park

    $459,900
    Commercial
    Status:
    Active
    MLS® Num:
    A2116428
    Build. Type:
    Warehouse
    3329 SF Warehouse Bay with fully developed offices. Main floor features a reception, a large open workspace, 6 offices, a staff kitchen area, a washroom, storage and a 25'4" x 29'10" warehouse bay with 16' x 12' overhead bay door with access at grade from the back of the unit, rear man door, and gas fired overhead heating/furnace. The fully developed 1325 SF Mezzanine features 5 offices, a washroom, storage & boardroom. Ample parking. Strategically located with high visibility on MacKenzie Boulevard in the southeast sector of the community. Adjacent to Highway 63 with direct access to Highway 69, MacKenzie Industrial Park offers excellent access to the airport and downtown core. Affordable condo fees include common area care, landscaping, garbage removal, water, professional management, and reserve fund contributions. More details
    Listed by COLDWELL BANKER UNITED
    LISTING DETAILS
    Mohit Dhilon

  • lot 6 2 Highway in Rural Peace No. 135, M.D. of: Warehouse for sale : MLS®# A2128992

    lot 6 2 Highway Rural Peace No. 135, M.D. of T8S 1T1
    Main Photo: lot 6 2 Highway in Rural Peace No. 135, M.D. of: Warehouse for sale : MLS®# A2128992

    lot 6 2 Highway Rural Peace No. 135, M.D. of T8S 1T1

    $599,000
    Commercial
    Status:
    Active
    MLS® Num:
    A2128992
    Build. Type:
    Plane Hangar
    This remarkable hangar has just come on the market, offering an exceptional chance for aviation enthusiasts. Situated on a generous 100'x300' lot, totalling 33,000 sq. ft., the hangar itself measures an impressive 60'x40'. The spacious 46.5'x14' high bi-fold hangar door and newly installed 56' aprons ensure easy parking and maneuvering within the 2,400 sq. ft. of hangar space. The interior has been beautiful refinished, featuring an epoxy floor and modern bathroom fixtures. if you've been searching for a hangar to accommodate your small to medium-sized airplane, your search ends here. The hangar is fully equipped with all necessary utilities, including natural gas heating to keep the space warm during winter. Peace River Airport (CYPE) is conveniently located just 5 miles west of the town of Peace River, Alberta. The airport boasts a 5,000 ft asphalt runway, providing excellent facilities for private and small commercial aircraft. Don't miss this unique opportunity. Call today to schedule a viewing and secure a new home for your plane at Peace River Airport! More details
    Listed by Royal LePage Valley Realty
    LISTING DETAILS
    Mohit Dhilon
1-12/338
 <  123...29  > 
Data was last updated January 28, 2026 at 04:05 AM (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.

Signup for our newsletter

STAY UP-TO-DATE WITH LATEST NEWS AND TIPS

Stay up to date with the Calgary commercial real estate market through our monthly newsletter. Get the latest MLS® listings, market insights, investment trends, and buying or leasing tips delivered straight to your inbox. You can unsubscribe anytime, and your email address will always remain private.

Signup for our newsletter Form Form

BUY or SELL - Contact Us Today!

(587)-719-5523

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.