I spoke with Langham three weeks ago and inquired about Tower 2; design is actively moving forward, but the Downtown market is such that it will likely be a pushed out a little bit.
Very very interesting comment. Edmonton's downtown market is just so unique compared to other downtown markets its almost baffling.
The rental market in general is on fire right now with buyers holding off buying homes, immigration into Alberta is driving demand for rental property development, rental rates are increasing (good for developers) yet still affordable in Alberta (good for renters), and CMHC funding is very much giving a boost to multi-family developments in Alberta right now. The number of rental towers in Calgary's downtown being proposed because of these reasons is substantial yet Falcon 2 a rental project is being pushed back because of downtown Edmonton's market situation?
I guess what I am saying is that if the downtown Edmonton market cannot ride the current wave of favourable market economics driven by 1. rising yet still affordable rental rates and 2. immigration into Alberta I really dont know what it will take to ever get a further boost to residential downtown. It is almost as perfect storm as you could ask for for downtown from a macro economics standpoint yet I dont know that downtown is seeing the activity it could.
Note, yes there are a number of residential projects that are under construction right now, but I am surprised that the pipeline of projects being proposed isnt higher and projects like Falcon 2 are being pushed back rather than accelerated.