EDMONTON — Global commercial real estate adviser, Avison Young recently released its Q2 industrial report for Edmonton which found the overall vacancy rate remained unchanged at 4.4 per cent.
Two submarkets experienced significant swings in vacancy rates: Central Edmonton saw a 60-bps increase, bringing the vacancy rate to 3.3 per cent and Sherwood Park’s vacancy rate dropped by 80-bps to 2.7 per cent. Northeast Edmonton and Acheson continue to be the tightest markets, with vacancy rates of one and 1.2 per cent, respectively.
For the first time in three years, the greater Edmonton industrial market experienced overall negative absorption albeit, it was only -25,000 square feet (sf). Edmonton itself contributed 123,000 sf of negative absorption, however, the surrounding municipalities counterbalanced this with 98,000 sf of positive absorption, more space was leased than was vacated, indicates a release.
Most of this negative absorption took place in the South/Southeast submarket, contributing -95,000 sf, followed by Central Edmonton with -25,000 sf.
Despite the negative absorption, vacancy rates have remained relatively stable in Q2 2024. Edmonton saw a minor 10-basis point (bps) increase in vacancy, whereas surrounding municipalities experienced a slight drop of 20 bps.
Direct vacant square footage dropped across all submarkets except central Edmonton, while sublease vacant square footage increased or remained flat across all submarkets. The most significant change was observed in South/Southeast Edmonton, where vacant headlease space dropped by 60,000 sf, but vacant sublease space increased by 154,000 sf., adds the release.
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