Edmonton Industrial Market Report

Healthy performance to continue amid rising demand. Edmonton’s industrial sector experienced a rapid vacancy decline throughout the pandemic. In 2022, net absorption was more than double the pace of construction, which led to a 110-basis-point drop in vacancy. However, with availability standing at roughly 3 per cent, Edmonton is still a more balanced market compared to other major Canadian metros. Coupled with relatively low rents, the metro has attracted many tenants priced out of the neighbouring BC markets. In 2023, demand will likely remain healthy as Alberta’s economy is poised for another year of robust performance, due to elevated oil prices and substantial population gains. However, with new supply remaining elevated, vacancy is expected to see a slight uptick. Nonetheless, with new, high-quality supply entering the market, coupled with healthy demand, rents will likely continue to face upward pressure.