Edmonton industrial market report

Q3 2023

Market overview

The Greater Edmonton industrial market's vacancy rate has remained relatively stable compared to Q2 2023, dropping by just 10 basis points (bps) to 4.5%. This modest change is noteworthy, given that nearly 560,000 sfof new supply entered the market. However, not all submarkets experienced the same modest decline in vacancy rates; the Nisku/Leduc and South markets, in particular, saw significant drops of 80 bps and 90 bps, respectively. These declines can be attributed to impressive positive absorption, with each submarket absorbing over 300,000 sf of space. Conversely, Sherwood Park experienced the largest increase in vacancy rates among all submarkets, with a 160-bps rise, primarily due to a 118,400-sf building becoming vacant and available for sale. It's worth noting that the Northwest submarket is witnessing significant subleases of over 100,000 sf, which have impacted the vacancy rate and its increase.

The industrial sector continues its trend of positive absorption, marking a total of 13 consecutive quarters with positive absorption. In this quarter alone, 725,000 sf of space was positively absorbed. This trend was driven by the occupancy of existing buildings, as new developments in this quarter did not experience significant pre-leasing and, therefore, did not significantly impact the absorbed product. The South and Nisku/Leduc markets were the primary contributors, accounting for over 800,000 sf of absorption.

On the development side, the industrial market saw the completion of four significant projects, totaling 559,000 sf. In the Northwest, QuadReal's Anthony Henday Business Park building 2A and Northport Business Park building E accounted for 207,463 sf and 169,508 sf, respectively.

In addition, Remington completed construction on a flex warehouse and distribution complex, Discovery Centre V, adding 108,197 sf to the business park. In Leduc Blackmud Creek Industrial Estates building M was completed and is ready for fixturing. This will add 73,800 sf to the Nisku and Leduc market. Continuing in the Nisku and Leduc submarket, Hopewell is set to bring online a massive 480,000-sf distribution project at Border Business Park. Building M is LEED Gold certified and will add to the already impressive business park. The project is scheduled for delivery this November.

In the South submarket, two new additions are on the horizon for Panattoni's expansive 1.8 million-sf Fulton Creek Business Park. The first building spans 151,571 sf, while the second is an impressive 267,173 sf, totaling 418,744 sf. These state-of-the-art developments are designed for LEED certification, enhancing efficiency and reducing operational expenses. Already, 200,000 sf has been pre-leased. Additionally, we anticipate the completion of the 59,000-sf Roper Crossing Industrial Condos project in Q4, which will serve as a showroom/industrial condominium project.

Moving to the Northwest submarket, exciting developments are on the horizon as well. Centre 118 Phase 2, spanning 79,000 sf, is scheduled for delivery in Q4, while Anthony Henday Business Park building 2B, offering a substantial 254,000 sf of space, is set for delivery in Q1 2024. Furthermore, a planned 366,000-sf development by ONE Properties at 41 Business Park in Nisku is on the verge of breaking ground. These developments continue to underscore that the demand for large-scale warehouse and distribution centers remains consistent.

Total vacancy rate

down 0.1% since Q2 2023


Edmonton vacancy rate

down 0.2% since Q2 2023


Surrounding municipalities vacancy rate

down 0.1% since Q2 2023


Square feet of inventory



Square feet absorption this quarter



Square feet under construction


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Get in-depth industrial market reports and insights from commercial real estate experts in the Edmonton area. Avison Young advisors look at Edmonton commercial real estate activities and the latest Edmonton statistics to provide you expert market research on Edmonton industrial properties.

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