- What Edmonton’s office market has seen a shift from positive to negative absorption
- Why The downtown area saw an increase in vacancy while the suburbs held steady
- What next Downtown landlords are looking for ways to remain competitive
Edmonton’s office market shifted from five quarters of positive absorption to more than 120,000 sq ft of negative absorption in Q4 2024, Avison Young said in a report released this week.
The city’s downtown vacancy rate was driven up slightly to 19.2%, the brokerage said. Government Class A and B buildings experienced the largest vacancy increases in the area, rising 3.25% and 2.64%, respectively, compared to the previous quarter.
Outside of downtown, Edmonton has seen sustained demand for suburban office space, which had a 15% vacancy rate in Q4. Accessibility, cost efficiency and changing workplace dynamics were noted as contributing factors.
The continued popularity of the suburbs is causing downtown landlords to enhance building amenities and optimize lease structures to compete, Avison Young said.
Against that backdrop, the city’s office market saw a boost in investment activity in Q4, with Avison Young attributing the bump to lowered interest rates.
Seven sales worth a combined $105m went through in the final quarter of the year, up from just three sales ringing in at $37m in Q3. The top transaction was Leder Investments’ purchase of a 411,000 sq ft office building at 10405 Jasper Avenue, Avison Young said. The price was not disclosed.
