- What JLL said in a Q2 report that limited new builds and demand are keeping Edmonton’s industrial market availability low
- Why Much of the demand for space is coming from companies in the oil sector
- What next Rents are expected to trend upward in 2025
Edmonton’s industrial market remained strong as demand and scarcity helped decrease availability in the city, JLL said in a Q2 report on the market.
Much of the demand is coming from oilfield-related companies, which helped push a 10-basis point decrease in available industrial space in the region.
JLL said the figures defy the national trend, with Edmonton’s vacancy rate dropping to 3.4% and availability easing to 5.1%.
Manufacturing related to the oilfields has kept demand strong, while limited new supply catering to small-bay operations has kept the vacancy rate in the category low. The limited supply is expected to contribute to increased rental rates in 2025.
But there were some bright points for larger spaces.
“While demand from 50,000 s.f. plus users was somewhat muted,” the brokerage said, “there were some major deals that crossed the finish line in Q2.”
JLL highlighted a 500,000 sq ft Leon’s furniture store as a notable completion.
Meanwhile, 1.9 million sq ft of new builds are forecast to be completed in Edmonton this year.
Property deals in the quarter included the $13.8m sale of the 58,000 sq ft 6005 72A Avenue to Resman Holdings by Imperial Equities. That valuation worked out to $236/sq ft.
Coffer Holdings sold the 106,000 sq ft property at 14735 124 Avenue to Durum Industrial Real Estate GP for $8.5m, or $80/sq ft.
