Edmonton Industrial Investment Forecast
Connectivity and Comparably Favourable Rental Costs Propel Tenant Interest
Location drives hot market. Steady population growth, combined with Edmonton’s centralized location that features rail and road connectivity, is spearheading the rapidly improving industrial landscape. While Vancouver is the prominent point of first contact for goods coming from Asia, Edmonton has benefited from spillover demand, due to less expensive rents and greater space availability. Additionally, Edmonton operates as a middle point between Vancouver and more eastern locales like Winnipeg and Toronto, providing firms with access to a large portion of the Canadian population. These factors are responsible for the steep vacancy decrease logged from the end of 2018 through last year. Availability will continue to contract in 2022, as much of the delivery pipeline is pre-leased, headlined by a new Amazon facility in Parkland County. The speculative construction that is moving forward is expected to lease fairly quickly as well. Local firms operating out of smaller facilities will likely expand once new, large floorplans become available.