What's the scoop?

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.