Market Report
Edmonton Industrial Market Report
2026 Investment Forecast
Leasing Strength and Limited
Supply Power a Constructive Outlook
Fundamentals poised for continued gains. Edmonton was one of the few metros in Canada that did not see a notable rise in vacancy last year. Demand from logistics, manufacturing and energy-related firms, as well as support services, fuelled leasing activity. Notably, small-bay units under 20,000 square feet made up 90 per cent of all signed deals. The metro’s lower rents, as well as less restrictive development and permitting processes, also drew tenants and investors from higher-cost markets, adding another layer of strength to space demand. This healthy net absorption did not translate into a rise in development, however. Builders turned cautious first in 2023 when fundamentals began to soften nationally, and again last year when trade-related uncertainties weighed on sentiment. As a result, completions dropped to their lowest level since 2021 last year, helping to keep vacancy below 3.0 per cent. The construction pipeline for 2026 points to another year of subdued openings. With lower interest rates, increased oil production and above-average population growth supporting an outperforming economy and space demand, the vacancy rate is likely to continue declining amid this muted supply growth.
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