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Commercial Property Insider

Q4 2023┃Edmonton Industrial Market Report

4 Minute Read

▼ $138.25 / SF AVERAGE SALES PRICE​

▲ 4.50%
VACANCY RATE

▲ $10.98 /SF
NET ASKING LEASE RATE

◌ 6.75 % - 7.75 %
CAP RATES┃CLASS B

Alberta forging ahead against headwinds, with renewed optimism

INDUSTRIAL MARKET OUTLOOK

  • We are expecting a strengthened commercial real estate market in 2024. Notable factors include the potential plateau of interest rates and the fact that over one million square feet of added industrial supply is expected by the end of Q2 2024.
  • Alberta has had record breaking crude oil production in recent months. This is anticipated to continue with the Trans Mountain Pipeline, to be completed by Q2 2024. As a result, there has been an increased demand for high-quality small bays due to the strength of the energy sector.
  • Edmonton is well positioned for growth as an inland port due to our main transportation corridors and access to Edmonton international airport.

AVERAGE INDUSTRIAL LEASE RATES VS VACANCY RATE 

Average Edmonton Commercial Real Estate (Industrial) Lease Rate vs Vacancy Rate
Average Edmonton Commercial Real Estate (Industrial) Lease Rate vs Vacancy Rate

A NATIONAL COMPARISON

While the global economy is starting to slow, Alberta’s GDP is forecast to be 2.9% in 2024, and Alberta’s GDP per capita is the highest in all of Canada.

In Edmonton, with our abundance of land, relative affordability, and an influx of net migration, we believe we are well poised in 2024 for a stronger year ahead.

TRENDS

Despite an increase in the Business Confidence Index, and the optimism of the future of Alberta, business owners are still facing significant hurdles; including insufficient demand for goods or services, a shortage of skilled labour, and cost escalations that have impacted the levels of working capital. Many owners view these challenges over the last several years as unprecedented.

To adapt, many owners have been working longer hours, evaluating their real estate holdings, and employing creative short-term financing strategies to adapt to this current environment.

AVERAGE SALES PRICE ($/SF)
Freestanding Edmonton Industrial Under $4M

Average Edmonton Commercial Real Estate (Industrial) Sales Price $/SF
Average Edmonton Commercial Real Estate (Industrial) Sales Price $/SF

SALES DOLLAR VOLUME YEAR TO DATE
Freestanding Edmonton Industrial Under $4M

Average Edmonton Commercial Real Estate (Industrial) Sales Price $/SF
Average Edmonton Commercial Real Estate (Industrial) Sales Volume

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