For the first time in years, the office vacancy rate in Downtown Edmonton has dipped below 20 per cent. Read More
For the first time in years, the office vacancy rate in Downtown Edmonton has dipped below 20 per cent. “It sure is nice to see something that doesn’t start with a two,” said CBRE Edmonton’s managing director, Mark Anderson. With office, industrial, and residential reports released recently from commercial real estate services company CBRE and
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For the first time in years, the office vacancy rate in Downtown Edmonton has dipped below 20 per cent.
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“It sure is nice to see something that doesn’t start with a two,” said CBRE Edmonton’s managing director, Mark Anderson.
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With office, industrial, and residential reports released recently from commercial real estate services company CBRE and from the Realtors Association of Edmonton (RAE), respectively, key indicators for Edmonton’s real estate market show some promise.
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As housing starts augment the city’s housing stock and office vacancy comes down, the various markets sit in a comfortable position after the second quarter, but the fate of the rest of the year remains unclear as the housing market cools off in the summer and U.S. tariffs fuel uncertainty.
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Balance could be on the horizon for housing
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Although average housing prices are still up year-over-year in the greater Edmonton area, the price increases over 2024 have come down compared with previous months this year. RAE board chairwoman Darlene Reid said the market is edging toward more stability.
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“We’re starting to shift more into a balanced market. I would say we’re still on the cusp of a seller’s market, but at the bottom. Like, we’re a few points away from switching over to this balanced market,” said Reid.
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In June, sales were up 1.2 per cent over last year with residential average prices also climbing nearly six per cent. However, signs of a balanced market come from year-over-year comparisons in housing inventory, with a 15 per cent increase at the end of June over 2024.
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The rising inventory and the cooling activity will be good news for buyers, said Reid.
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“As a buyer, you want a little more choice, and you don’t want to have the pressure of having to make offers that are conditionless to compete. Now, people can take a little more time do their due diligence,” she said.
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Reid said a decline in market activity often happens during summer as people take vacations and have kids at home, leaving them less time to sell or look for property. The increase in inventory can be attributed to an ongoing home building frenzy in the city. Housing starts are up more than 22 per cent from last year.
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Office vacancy Downtown begins to subside
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With 88,000 square feet of positive absorption, Edmonton’s Downtown office vacancy has dipped to 19.3 per cent.
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The positive change was aided by a recent Canadian Mental Health Association Centre lease on 102 Avenue that helped eat up a significant amount of vacant inventory.