Edmonton office market report

Flight to quality

The Edmonton office market continues to experience an asymmetrical and articulated recovery; a gradual flight to quality benefitting Trophy and Class A properties, spikes in foot traffic on the collectively agreed upon “return-to-office” days, and space downsizing or remodelling that may move tenants into the periphery or even suburban market.

The heavy-handed interest rate hikes meant to combat inflation, arguably later than they should have been, have abruptly cooled investment activity across all asset classes. This should not deter savvy, long-term investors who can see opportunity in capital investment projects. Office towers such as Bell Tower and Baker Centre, for instance, have seen an increase in touring and leasing activity following the completion of their upgrades.

This trend extends to the suburban office market as well. Nexus Business Park, once an overlooked development near the intersection of 142nd Street and 118th Avenue, has transformed into a thriving, well-balanced, and fully tenanted site thanks to the foresight of Nearctic and the hard work of Avison Young’s multi-disciplinary leasing team. This demonstrates the continued importance of refreshing and renovating spaces to keep tenants and consumers engaged.