Edmonton office market report
Q4 2023
What's the scoop?
Q4 2023 continued upward momentum
In 2023, Edmonton's office market showed improvement, with vacancy rates commencing the year at 19.5% and concluding at 18.6%. Notably, in Q4, positive absorption of 139,584 sf contributed to reducing the city's office vacancy from 19.0% to 18.6%, marking it as the sector's second consecutive quarter with over 100,000 sf of positive absorption. The year ended with a total absorption of 234,641 sf, making it the most absorption seen in Edmonton's office market since 2018. This performance underscores the market's promising trajectory, emphasizing its stability and ascending momentum.
In a significant downtown shift, CWB Financial Group (“CWB”) is relocating its national headquarters to Manulife Place after ICE District Properties decided not to proceed with plans for a 16-storey office building, which included 12-storeys for CWB on 104th Avenue south of Rogers Place. Chris Fowler, President and CEO of CWB said "moving to Manulife Place maintains Edmonton as our home and the prominent role that CWB has within the city's downtown business community.“ CWB has secured naming rights and crown signage at Manulife Place, solidifying their presence and the positive economic impact of this move. This transaction will have a markedly positive impact Edmonton's downtown business landscape, as it relocates a considerable number of employees deeper into the core, which will spark increased economic activity in the area. Manulife Place will be undergoing a substantial redevelopment of the podium levels including the buildings amenities. The landlord’s commitment to invest a significant amount of capital into the asset has been critical to its leasing success.
One block away from Manulife Place, the Rice Howard Place revitalization project is underway and slated for completion in summer of 2025. The renovation spans interior and exterior enhancements across the three-level podium and will elevate the property’s appeal.
Both Manulife Place and Rice Howard Place projects are expected to act as catalysts for Edmonton's financial core and bring promise for the area's future.
Highlights
Surge in leasing activity around ICE District
In the past year, Edmonton's real estate landscape, particularly within ICE District, underwent noteworthy adjustments. Properties adjacent to ICE District experienced a surge in transactions and increased activity, highlighting a shift in the area's real estate dynamics. Henry Singer's relocation to Stantec Tower's main floor is a testament to retailers' confidence in the region, further enhancing the district's appeal. Notably, Trophy Class properties showcased a decline in vacancy rates from 9.4% in Q4 2022 to 5.5% by the end of 2023, indicating a maturing market.2023 downtown Edmonton highlights
Downtown area is being bolstered by economic and demographic shifts. Projected population growth, student influx, and improved transit connectivity are laying a solid foundation for the future.Suburban market overview
In the suburban landscape of Edmonton, Windermere and Summerside stand out with remarkably low vacancy rates, clocking in at 6.9% and 6.7% respectively, notably lower than the average suburban vacancy rate of 17%.2023 Canada and Alberta economic highlights
In the economic landscape of Canada and Alberta, notable shifts in interest rates and inflation have shaped fiscal trends. Alberta's economic growth is evident in its substantial 4.1% year-over-year population surge measured at the beginning of October, propelled by federal immigration targets and interprovincial migration, reinforcing the province's economic vitality.
19.9%
Downtown Edmonton
average vacancy rate
17.0%
Suburban Edmonton
average vacancy rate
$18.08
Downtown Edmonton
average lease rate per square foot (psf)
$15.18
Suburban Edmonton
average lease rate per square foot (psf)
18.1M
Downtown Edmonton
total inventory square feet (sf)
15.7M
Suburban Edmonton
total inventory (sf)
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