In 2011, Calgary already bested most major cities when its vacancy rate dropped down to 7.2%. Only Ottawa (6.9%), Quebec City (4.7%) and Regina (1%) had lower office vacancy rates.

Looking ahead to this year, the report said Calgary will continue to see major action in offices, with the vacancy dropping to 5.2%, which will put it below Quebec City and Ottawa this time around, but Regina will remain the lowest despite rising to 4.1%.

Vancouver is another city expected to see significantly lower office vacancy rates in 2012, down from 7.6% last year to 6.4% this year, according to Avison Young.

The forecast also included a study of the U.S. market, but as with the residential sector, Avison Young Chairman and CEO Mark Rose found the commercial market to be stronger in Canada.

“There is a dichotomy in the North American commercial real estate market,” he said. Canada is experiencing a period of stability and modest growth, while the United States continues to search for traction in the recovery process.”

That yet-to-recover U.S. market has, nonetheless, attracted an increasing number of Canadian investment dollars.