Edmonton Office Market Report
Market Beginning to Stabilize; Lack of New Supply
Helping with Long-Term Fundamentals
Office market supported by a wide range of users. Edmonton has built a diverse tenant group, aided be the large presence of the provincial government, alongside finance, engineering and health companies, and more recently tech firms. This broad mix helps insulate the metro from oil and gas downturns. Nonetheless, like every other market, Edmonton was impacted by the global health crisis. With vacancy already elevated prior to the pandemic, fundamentals were impacted more severely, due to the new hybrid work dynamics. However, with Edmonton having a sizable government presence, it provides a level of stability. Additionally, the influx of technology companies, like Microsoft, is strengthening the longer-term outlook for the Edmonton office market. These factors, coupled with the recovery of oil prices — which is stimulating strong provincial economic and employment growth — will likely boost office demand in the coming quarters.