Market Report
Edmonton Office Market Report
2025 Investment Forecast
Vacancy to Drop for Fourth-Straight Year
as Macro Trends Fuel Rising Demand
Sector fundamentals continue to improve. The office vacancy rate in Edmonton declined for the third consecutive year in 2024, reaching its lowest level since 2019. Industry diversification and labour force expansion in the metro drove an increase in space demand. At the same time, the sector also benefitted from the provincial government’s return-to-office policy, with several agencies – including Alberta Health Services and Alberta Infrastructure – expanding their office footprints. This year, the professional services sector backing Alberta’s energy production is expected to grow further as the upgraded Trans Mountain Pipeline boosts oil output. On top of that, declining interest rates are likely to support small business growth in the metro, particularly within the tech industry. Together, these trends may drive a greater demand for office space, sustaining downwards pressure on the vacancy rate in 2025. On the supply side, developers have largely shifted focus away from the office sector. In the absence of policy support, some investors have chosen to independently pursue office-to-residential conversions as a means to capitalize on the potential upside of these projects.
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