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Market Report

Edmonton Office Market Report

2Q 2024

Demand Recovering as Downtown Regains Vibrancy
While Hurdles Exist for Redevelopment

Leasing demand rising across Edmonton. Between the final quarter of 2023 and the first quarter of 2024, office demand in Edmonton’s urban core improved significantly, with net absorption exceeding 180,000 square feet, reaching its highest six-month level since early 2019. This increase in leasing activity coincided with the city’s efforts to revive its downtown area last year by hosting various events and improving safety in public transit. Coupled with the gradually rising trend of returning to the office, the vacancy rate in the downtown submarket declined to 17 per cent in the first quarter of this year. In the suburban market, net absorption also turned positive in early 2024 after a brief period of rising vacancy recorded in the second half of 2023. For the remainder of 2024, with limited new construction and improving office demand, the vacancy rate is expected to continue its decline, hovering below 15 per cent.
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