The market's resiliency places it well above the competition, according to a new report
Despite a potential increase in economic uncertainty, the Edmonton commercial market is exhibiting enviable resiliency, according to a new analysis by Avison Young.
This is especially apparent in the region’s industrial segment, which has seen a “substantial increase” in market activity throughout the second quarter of the year.
Edmonton’s overall industrial vacancy rate was at 4.4% as of Q2, down by 0.3% on a quarterly basis. Total quarterly absorption was at 449,445 square feet, while 5.4 million square feet of industrial space remains under construction.
“With construction, the amount of new supply delivered to the market was less than new projects breaking ground, resulting in an increase in overall space under construction since last quarter,” Avison Young said.
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“With vacancy rates compressing, we will likely see growing levels of interest in land, particularly parcels outside the city benefiting from a more affordable land cost base and lower property taxes,” the report added.
Edmonton is particularly benefiting from provincial-level strength, with market momentum likely to persist for the foreseeable future.
“Alberta is also attracting the attention of major markets currently experiencing record-low land availability with escalating prices; acting as an affordable alternative for some,” Avison Young said.
