Edmonton industrial market report

Q4 market trends

The year concluded on a record breaking note for the industrial sector, whereupon four consecutive quarters of positive absorption were achieved
even with over four million square feet of new supply. As vacancy and availability nears lows not seen since 2015, the growth of the Edmonton area’s industrial market must be recognized; approximately 25 million square feet of inventory has been added over the last eight years.

With nearly four million square feet more currently under construction, some of it pre leased, the rest of the nation is beginning to recognize Edmonton’s strategic location as a distribution and cargo hub. Upcoming developments slated for completion in 2023 include:
- 242,550 sf at Pioneer Skies in Nisku
- 321,031 sf at Discovery Business Centre in Leduc
- 321,055 sf at Northport Business Park in northwest Edmonton
- 418,744 sf at Fulton Creek Business Park in southeast Edmonton
- 423,481 sf at Anthony Henday Business Park in St. Albert
- 481,450 sf at Border Business Park in Nisku

Expect leasing activity to remain strong in 2023 with continued positive absorption predicted for the market.

(De)globalization and Edmonton

As part of Avison Young’s 10 Trends for 2023, we discuss the consecutive blows to globalization; namely, economic nationalism, the COVID 19 pandemic, and Russia’s invasion of Ukraine.

These developments have created an economic situation so volatile and untenable that Biden has been forced to tread where Trump merely tweeted and begin the process of returning manufacturing bases back to American soil. These agreements are undoubtedly in their infancy, but their increasing volume will only add additional pressure onto industrial real estate in North America. Expect demand for manufacturing spaces (and the energy to power them) to increase concurrently with a demand for batteries, magnets, and other technology used in computers, solar panels, wind turbines, electrical vehicles, and tractors.