Edmonton Industrial Market Report

The industrial sector may navigate challenges. Edmonton was the only major metro to see vacancy fall in 2024, hitting its lowest level in nearly a decade. Population growth was one of the fastest in Canada – and will continue to outpace the national average this year – fuelling a 6.0 per cent rise in provincial retail sales. This pace also aided logistics demand, positioning Edmonton to grow as a distribution center for western Canada. As Alberta’s energy servicing hub with growing access to export markets, related employment also tends to be less sensitive to price volatility, helping long-term demand across a wide range of use formats. Along with positive net absorption over the second half of 2024, this may suggest that demand for more industrial space could continue into 2025 amid lower interest rates and demographic tailwinds. Tariff uncertainties pose a material risk to export demand, however, as Edmonton is a western Canada manufacturing hub. At the same time, slowing global economies and lower oil prices could also cause a wait-and-see approach to creep into the market.