EDMONTON – A recent Avison-Young report says Edmonton’s office market is continuing to set records.
The report stated office real estate showed two straight quarters of positive absorption over 100,000 square feet and closed 2023 with a total absorption of over 234,000 square feet, the most since 2018.
The was an uptick in activity in the city’s ICE District, with a surge in transactions and increased activity including local formal clothing store and long-standing Edmonton business Henry Singer’s relocation to Stantec Tower.
“Trophy Class properties showcased a decline in vacancy rates from 9.4 per cent in Q4 2022 to 5.5 per cent by the end of 2023, indicating a maturing market,” the report said.
The overall downtown area is seeing demographic and economic shifts, with projected population growth, student influx and improved transit connectivity acting as growth drivers.
CWB Financial Group (CWB) is relocating its national headquarters to Manulife Place in the city’s downtown core after ICE District Properties decided not to proceed with plans for a 16-storey office building, which included 12-storeys for CWB on 104th Avenue south of Rogers Place.
“Moving to Manulife Place maintains Edmonton as our home and the prominent role that CWB has within the city’s downtown business community,” CWB president and CEO Chris Fowler said.
In the suburban market, the Windermere and Summerside neighbourhoods have shown low vacancy rates with 6.9 per cent and 6.7 per cent respectively which is much lower than the average suburban vacancy rate of 17 per cent.
In terms of the province, “Alberta’s economic growth is evident in its substantial 4.1 per cent year-over-year population surge measured at the beginning of October, propelled by federal immigration targets and interprovincial migration, reinforcing the province’s economic vitality” the report said.
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