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CBRE
Figures
  | 
Edmonton Industrial | Q3 2023

Smaller users spur the continued descent of availability and vacancy
CBRE RESEARCH
 | 
OCTOBER 2023
5.1%
Availability Rate
717M
SF Net Absorption
2.3M
SF Construction
Arrows indicate change from previous quarter.
‒The Edmonton market’s availability and vacancy rates continue their downward trend. Since last quarter, availability is down 30 basis points (bps) to 5.1%, while vacancy decreased 10 bps to 2.7%. Both rates are at their lowest point since Q2 2015.

‒Although the market is displaying positive net absorption, it is now apparent the market is returning space via sublease inventory. Supply chain issues have diminished, and the market is balancing demand by returning sublease space. Despite this returning inventory, Edmonton’s vacancy rate continues to trend downward due to users under 100,000 sq. ft.

‒Construction carries on at QuadReal’s Anthony Henday Business Park. Building 2A is in the finishing stages, with completion scheduled for early Q4 2023, and foundation work has been completed on Building 2B, with the project scheduled for Q1 2024 completion. Crestpoint’s Building E at Northport Business Park, was completed this quarter, as scheduled.

‒Unlike last quarter, this quarter’s positive net absorption was driven by growth within existing supply. Approximately 40,000 sq. ft. of this quarter’s positive net absorption was pre-leased space, a stark contrast with the approximate 800,000 sq. ft. seen in Q2 2023.
FIGURE 1: Historical Leasing Fundamentals
Source: CBRE Research, Q3 2023
For more information, please contact:
Dave
Young
Executive Vice President  & Managing Director
+1  780 917 4625
Dave.Young@cbre.com
 
Chelsea 
Davidson
Research Analyst
+1 780 917 4635
Chelsea.Davidson@cbre.com
Adam
Hundert
Researcher
+1  780 917 4629
Adam.Hundert@cbre.com
Lucas
Neumeyer
Researcher
+1  780 229 4694
Lucas.Neumeyer@cbre.com
 
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