Calgary's industrial vacancy rate rose to 5.48% in the third quarter of 2015, representing over 7.4 million square feet of vacant space. New construction added nearly 2.8 million square feet to total inventory, contributing to higher vacancy. However, absorption was positive at 1.77 million square feet, led by the new 1-million square foot Home Depot facility. Vacancy is forecast to continue rising through the end of the year as more speculative construction comes online, possibly increasing the vacancy rate by 1.1%, while rental rates are expected to decrease modestly and inducements to increase.