News   Apr 03, 2020
 7.3K     3 
News   Apr 02, 2020
 7.5K     0 
News   Apr 02, 2020
 2.5K     0 

Edmonton Real Estate Market

As with other cities there is going to be a sea change in the type of housing demand. More people are going to opt for density areas -- downtown, university adjacent, main street nodes (Old Strathcona, Transit collectors, etc.); I don't think that I would want to be a single family residential home builder in this climate.
Edmonton commercial real estate prospects looking up, report says
New figures showing a slight rise in Edmonton’s downtown office vacancies since last year and a slight decrease in the suburbs likely bode well for the local economy, a real estate researcher says.

“I think it’s probably pretty good news,” Craig Hennigar, director of Canadian market intelligence for Colliers International, said earlier this week.

“Really, there isn’t much change downtown, but my takeaway is we’re past the majority of any hiccups caused by the oil price decline … It’s hard to see you have been through the valley until you look back and see you’re starting to rise again.”

Figures from Colliers indicate the downtown office vacancy rate was 17.7 per cent last summer, up from 17.4 per cent for the same period in 2016.

The reverse occurred in suburban areas for the third quarters of 2017 and 2016, when vacancies fell to 17.7 per cent from 18.1 per cent.

Edmonton’s market is far stronger than in Calgary, where downtown vacancies rose to 27 per cent from 22 per cent over this period and net rents dropped to $12 a square foot from $16, compared to $18.10 in the capital.

But plentiful work space is good for companies hoping to expand, especially when the Conference Board of Canada expects Edmonton to add up to 17,600 office jobs by 2021, the strongest increase of six major Canadian cities studied, Hennigar said.

“Having a bit of vacancy isn’t a bad thing. It allows companies … a bit of flexibility in planning for growth.”
Housing supply exceeds demand in Edmonton, analysts say


Edmonton's rental market vacancy rate is nearly double the national average.

Alberta’s boom and bust cycle has led to an oversupply of housing stock, with new and unsold units outpacing the demand for housing.

According to Canada Mortgage and Housing Corporation’s fourth quarter housing market assessment, evidence of overbuilding increased from moderate to high in both the rental and ownership markets when compared to the last quarter.

“It’s mostly an issue with apartment units, not so much single-detached homes or other low-rise buildings,” said Brent Weimer, principal, market analsysis for Edmonton with Canada Mortgage and Housing Corporation (CMHC).

“We still see, for this year, an oversupply issue in the rental market,” he added.
'It’s all happening downtown' Condos in the core see 62% spike in sales


Condo sales in Edmonton's downtown saw a 62 per cent increase this quarter

Edmontonians are flocking to downtown condominiums, despite a slump in sales in the rest of the city.

Market data for multi-family homes from Urban Analytics shows that condo sales in downtown Edmonton jumped by 62 per cent in 2017’s third quarter compared to the previous quarter.

“This is largely in the downtown region, so more in the Oliver and Strathcona areas. We saw project launches which really renewed buyer interest in those areas,” said market analyst Annalise Boytinck.

In contrast, total multi-family home sales were down 12 per cent from the previous quarter when looking at the entire city. About 86 per cent of all new high-rise condo sales were downtown.

Sandeep Agrawal, director of the urban and regional planning program at the University of Alberta, recently told Metro that projects such as Rogers Place, The Quarters and Blatchford have all contributed to a greater demand to live in the core.
In an old brick building just northwest of downtown, a bright, open retail space sits at the ready, but for the last six months it’s been under-utilized.

“It’s a beautiful, vacant space that we just don’t need yet,” Garner Beggs explained.

Beggs is behind Duchess Bake Shop and Café Linnea. He and his partners leased space in Holland Plaza, setting up a teaching kitchen and a retail store. The latter was moved back to the bake shop, leaving the space idle.

“We haven’t really had the time to do a thorough search to try and find the right person to come in,” Beggs said.

But a new option has caught his attention. It’s called thisopenspace and it’s coming to Edmonton.

“We’re an online marketplace for short-term creative and commercial spaces,” said Adam Bent, a co-founder of the site.

Edmonton will become the fifth Canadian city to have listings.
Ice District fuels Edmonton condo sales jump, highest in Canada: report
Edmonton condo sales saw the largest percentage of growth among key Canadian markets in 2017, thanks to a hot downtown real estate market.

A total of 1,289 units were sold last year, according to numbers released by Altus Group Ltd. on Monday. That amounts to a 60 per cent increase in new condominium apartment sales over 2016.

“This significant increase was connected to the downtown condo market where the new Rogers Place attracted buyers to the city’s core, with sales increasing by 160 per cent year over year,” said an Altus Group news release.

Sales in suburban Edmonton, where there is a large supply of inventory, were relatively flat.

Altus Group studied condo sales in Edmonton, Calgary (2,083), Vancouver (10,939), the Greater Toronto Area (36,429) and the Greater Golden Horseshoe area in southern Ontario (3,467).

While Edmonton and Calgary had the fewest sales among the markets, the overall growth was notable.

After a two-year downturn, condo sales in Calgary increased by 42 per cent from 2016. Unlike Edmonton, Calgary saw the strongest increases in sales in its suburban market.
Could this mean another office tower?:oops:
From CBRE:
  • The entire Edmonton office market recorded 50,179 sq. ft. of positive net absorption in Q1 2019.
  • The amount of sublease space available in Edmonton decreased by over 25% in Q1 2019 compared to the previous quarter.
  • The Edmonton office market added 20,696 sq. ft. of new supply in Q1 2019. This is a significant decrease from the previous quarter when there was 675,215 sq. ft. added.
Looks like these numbers are mostly buoyed by suburban office markets; downtown had a negative net absorption of ~17,000 square feet, and is still at approximately 18.4% vacancy.
You know, things always take longer than architects and developers would like and I still can't divulge much except to say that there is another major hotel tower coming to downtown paired with a specific use condo (let's call that project 1 for now) and a major office complex (along with a brand new tech company) with major retail and twin tower condos (three towers in total -- project 2). I am so itching to share these, but can't just yet -- sensitive discussions. I can say this much -- Project 1 twin 33-storey towers; Project 2 will have Edmonton's tallest office building -- occupied solely by one specific tenant with two arms (initials RSI and SSI -- now I am just making you crazy, no?); condo towers will also be impressive height-wise.