Tenants' long-term plans in the region are becoming increasingly apparent, new report says
The Edmonton commercial market has seen sustained activity from the engineering, construction, insurance, and non-profit sectors throughout 2022, and the region’s office market is likely to benefit from these segments’ momentum this year, according to Avison Young.
“With the COVID-19 pandemic in the rearview mirror, tenants have once again begun to think about the future and their long-term plans for return-to-office and the best use of space,” Avison Young said in a new market analysis.
“Opportunistic tenants have enjoyed a market that has largely offered favourable renewal terms or inducement rich relocations. Several tenant industries have been active with relocations and re-imaginations of space.”
In particular, the region’s suburban office submarket has seen “the lion’s share” of activity in 2022.
“The year has witnessed several landlords investing in their buildings to create inviting common areas and amenities to attract tenants and further encourage their employees back to the office,” Avison Young said. “2023 is expected to see this trend continue, with significant renovations already underway at the Canadian Western Bank Place and more expected to be announced in the first quarter.”
The market is also anticipated to benefit from improving foot traffic, with “incentive-based, hybrid policy” especially impelling the steady return of in-office work.
“As 2023 begins, expect significant blocks of sublease space on the market which may represent an opportunity for businesses in the incubation stage to take advantage of well-outfitted space to support their growth,” Avison Young said.
“This in turn will add further pressure on building owners to provide competitive amenities and rental rates. Continuing the theme of the past few years, the buildings with the best amenities will attract the best tenants.”
