Edmonton Office Investment Forecast
Expanding Scientific Firms and Startups Drive Demand for GEA Office Space
Innovation shifts local economy into office-dependent industries. The GEA’s tech sector is growing, aided by the presence of a top-tier academic institution that generates a labour pool of innovation and artificial intelligence workers. As a result, business accelerators and incubators, such as Startup Edmonton and Plug and Play Alberta, are increasingly being established in the metro. Additionally, access to skilled workers, comparatively cheap office space and business incentives are drawing numerous global firms to the area, most notably Google’s DeepMind. At the same time, one of the smallest batch of completions on record is scheduled for 2022, benefiting existing properties. Nevertheless, near-term headwinds will persist as the city delayed plans to allow workers back into offices in early January, and the potential for new variants of COVID-19 creates a level of uncertainty. Health considerations have led suburban offices to garner a larger share of leasing activity during the pandemic. In 2022, well-positioned firms are likely to take advantage of the favorable market conditions and grab additional Class A space in urban areas.