Edmonton Industrial Market Report Q2 2021August 9, 2021
Q2 2021 marks the fourth consecutive quarter that there has been a drop in the overall vacancy rate. While the quarterly change was a 0.2% decrease, and the year-over-year change was a 0.1% decrease, that doesn't quite tell the entire story. It was during the second quarter of 2020 when the industrial market started feeling the impact of COVID-19 lockdown measures being implemented. The vacancy rate during that time spiked from Q1's 5.4% to 6.8%, the highest quarterly change in vacancy that had been seen in recent history. Fast-forward to today and the vacancy rate has consistently fallen ever since Q4 2020.
From an economic standpoint, forecasting suggests that Alberta is primed to be a leader in recovery amongst the Canadian provinces. Resource production and manufacturing, along with an increase in global oil prices, are some of the main industries that will return to normal operations first. Due to the strong industrial sector Alberta has, GDP is estimated to reach 7.2 percent for 2021 and 5.6 percent in 2022.
With Alberta having lifted the vast majority of public health measures on July 1st, coupled with a boost from the economic side, it would seem the road to recovery is truly underway. It will still take time for the market to adjust however, as companies continue to navigate the pandemic environment. With that in mind, the remainder of this year will likely continue the trend of modest recovery and additional stabilization, with 2022 anticipated to be a strong growth year.