Edmonton Office Market Report

Suburban region showing signs of stabilization. Edmonton saw improvements in its office sector fundamentals throughout 2022. Net absorption turned positive and reached its highest level since 2018. Coupled with muted development, vacancy declined 180 basis points. Leasing demand outside the downtown rebounded the most as the return to office progressed at a faster pace in suburban areas, where residents live and work locally. This resulted in a significant vacancy drop in outlying regions, compared to a slight decline in downtown’s availability. In early 2023, this positive momentum continued to build in the suburbs as the vacancy rate fell further, reaching the lowest level since 2016. Investors also acted quickly to capitalize on this rising demand. In 2022, total dollar volume transacted rose 64 per cent in suburban markets, compared to only 4 per cent in Edmonton proper.