Edmonton Office Market Report

Space need on gradual upwards trajectory. Edmonton’s office vacancy rate has been on a three-year decline since peaking at 17.4 per cent in 2021. Leasing demand has been gradually improving, with an average of 240,000 square feet absorbed annually over that period. Preliminary data for the second quarter of this year suggests vacancy will continue to fall, despite uncertainties surrounding trade policies. A strong public sector presence and a resilient energy services industry are acting as stabilizing forces amid a volatile external environment, helping sustain steady growth in leasing activity. Even though the metro’s office vacancy rate remains among the highest in Canada, a significant portion of the unoccupied space is concentrated in a handful of buildings within the downtown submarkets. In contrast, vacancy rates in suburban areas are approaching single digits, which suggests that underlying leasing demand metrowide is stronger than the elevated overall vacancy rate implies.