Edmonton industrial market report

Q3 2022

 

01 Vacancy rates keep getting tighter

It was a long-anticipated marker, but the Edmonton industrial market vacancy rate has dropped below 4.0% as of Q3 2022. This compression of vacancy rates is a culmination of several factors, one of which being related to the lack of new supply available for lease. A primary driver of the robust development activity on the Edmonton market over the last two years has been focused on purpose-built projects, although new speculative projects have certainly been making waves. Overall, demand for industrial products remains greater than supply. While the pandemic has been hard on many businesses, there are others who have flourished and continue to seek new spaces to match their growth.


02 Labour shortage fosters adoption of new technology

Labourshortage is one of the biggest issues companies are currently facing today. Finding and retaining talent has been difficult in all sectors of the economy. The pandemic has put a spotlight on the acute labourshortage prevailing in the logistics and supply chain sector, at a period where demand for these services exploded worldwide. To keep up with increased reliance on this sector in the context of labourshortage, innovative technologies requiring new skills are being implemented. Labourshortage is likely to be a persistent issue until the talent pool has had time to adjust and develop these new skill sets.


03 Overall market outlook remains positive in the short term

Moving into the next 6-12 months, it becomes difficult to predict how the market will respond to recessionary pressures. Rising interest rates, persistent inflation and labourshortages will certainly test the Edmonton industrial market's resilience. However, we are expecting available space will continue to be absorbed, at least in the short to medium term. As a result, more emphasis might be placed on vacant, developable land parcels in anticipation of even more development starts down the road.
▼3.9%

Total vacancy rate

Down 0.5% since Q2 2022 
▼3.9%

Edmonton vacancy rate

Down 0.3% since Q2 2022 
▼4.1%

Suburban vacancy rate

Down 1.1% since Q2 2022 
▼6.46m

Square feet vacant

Marketwide
▲3.92m

Square feet absorption

Includes 2.9m Acheson Amazon Facility completion
▼3.5m

Square feet under construction

Marketwide
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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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