Edmonton Market Summary Report - 2023 - Q2

Rental rates are rising in both the Industrial and Multi-Family market segments as low levels of vacancy strengthen the leverage of Landlords across the market. Capitalization rates have generally remained steady, although some positive pressures are being witnessed as financing concerns weigh on purchase intentions.

Retail markets are appearing stable, with strong demand for new buildings in high profile locations, and moderate evidence emerging of increases in capitalization rates as future rent expectations are less likely to offset expected financing costs when compared to other asset classes.

Office space continues to move as expected. Older developments are suffering from increased operating costs, while new developments are in higher demand by tenants and investors alike. High efficiency buildings are reducing the pain of operating expenses and allow for high-density transition and flex working environments as hybrid work models become the norm.