Lethbridge investment market report

After a slowdown in investment transactions in 2023, 2024 has seen a resurgence due to lower capital costs and improved buyer sentiment. 40.9% of all sales transacted through the Avison Young Lethbridge office have been investment. Industrial vacancy has been steady since 2021, with much of the available inventory requiring redevelopment. Office vacancy has slowly trended down, but demand has slowed, with much of new office users backfilling traditional retail space over existing office space. Office users are also more inclined to pay higher rates for new and A-class spaces over existing office real estate. Retail vacancy in Lethbridge is extremely low, below 1% available usable space. New retail developments are moving forward in Lethbridge, with strong pre-leasing and user demand. Multi-family developers have pushed to purchase more land in 2024 looking to break ground in 2025. As market rents in Lethbridge are up 14+ percent year over year, multi-family housing is an attractive asset class for investors. Overall, Lethbridge remains an attractive location for investment, with strong growth expected in 2025 which we predict to be a construction-heavy year on account of the low vacancy in most asset classes.