Edmonton Industrial Market Report Q3 2021November 1, 2021
Despite the influx of a fourth wave of COVID-19 in Alberta, the industrial sector in the greater Edmonton area continues seeing positive signs of recovery.
While the overall vacancy rate for the sector dropped by only 0.1% since last quarter, it has decreased by almost 1.0% when compared to Q3 2020. The trend of vacancy shrinking at a consistent, albeit slow, pace is encouraging as it shows the resilience of the industrial sector. Additionally, we have been seeing an increase in general inquiries and property tour activity as the number of groups actively seeking space and taking action continue to grow.
A big win for the industrial sector and Alberta as a whole, was the announcement that Dow Chemical Co. are committed to a $10 billion+ capital investment in the world’s first net-zero emission petrochemical facility in Fort Saskatchewan. The project will triple the size of the existing complex and marks the biggest investment in the province in 15 years. While the project requires final approval, it still brings a great deal of positive sentiment to the province and should serve as a confidence booster for those in similar industries, particularly as the number of major energy-related projects in the province are slim.
Looking forward, we expect the level of market activity to remain relatively unchanged until the new year, particularly when fewer health restrictions are imposed on the province and confidence returning to those in the market. As the light at the end of the tunnel continues getting brighter, our Avison Young industrial team is here to assist with your business requirements.