Financial district space propelling negative absorption
The Edmonton office market has continued to experience negative absorption for the fourth consecutive quarter, primarily attributed to increased available space in the financial district. Notably, Centre Point Place and Canadian Western Bank Place contributed to this trend by returning 48,000 sf to the market.
On the other hand, the government district saw a marginal improvement in occupancy, leading to a decrease in its previously reported vacancy rate of 21.2% in the first quarter of 2023. The current rate stands at 20.9%.
In the suburban market, although more than half of the districts experienced negative absorption, there was an overall increase in occupancy. Leading this positive trend were 124th Street, West End and Summerside districts, which collectively leased nearly 27,000 sf. The average size of tenants leasing space in these districts was 2,500 to 3,500 sf, in alignment with the average tenant size within Edmonton.
Our point of view
As we reach the midpoint of the year, it is anticipated that the market will continue moving. Increasing vacancy rates present an opportunity for tenants to capitalize on and strategically enhance their office presence by transitioning to buildings that were previously unattainable.
Your source for the latest Edmonton office market reports
Get in-depth office 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 office properties.
Explore different topics like the latest office market pricing trends and analysis of Edmonton's current office real estate market conditions. Gain a better understanding of Edmonton’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Edmonton's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Edmonton.
The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.
Get the latest Edmonton office market reports right in your inbox