Edmonton’s commercial/industrial market is benefiting from a considerable boost brought about by an improved economy, according to a fresh study by TN Real Estate Intelligence.
In the 12th edition of its The Network Market Overview report, the industry observer said that the total value of commercial/industrial real estate in the city last year was at $2,872,606,666 (spread across 624 transactions). This was a considerable improvement from 2017’s volume of $2,200,390,168 (552 transactions).
“2018 represented the second year of economic recovery within the Province of Alberta and City of Edmonton. The economic recovery has exerted a positive influence on the city’s real estate market. The overall dollar value of sales citywide was up approximately 30% as compared to 2017,” TN stated in its report.
“The total number of sales was up 13% from 2017 and this represents the largest total of overall sales since 2012-2014.”
Read more: Edmonton’s commercial/industrial market accelerates
Warehouses also took the lead as a highly desirable industrial property type in Edmonton last year.
“The owner/user warehouse category saw increases in both dollar sales volume and total number of sales but decreased 16% in terms of the average price per sq.ft. from 2017. Activity levels were also down once again in the single tenant category and the average capitalization rate increased to 6.69% in line with levels from 2013-2016.”
“An increase in the multi-bay investment category was also evident. The total number of sales in the multi-bay sector doubled and the average capitalization rate decreased from 7.38% in 2017 to 6.99% in 2018.”