Strong performances in the office and retail sectors have thrusted Edmonton's commercial real estate investment levels above those recorded in the previous quarter. According to Altus Group, a prominent provider of real estate services and data solutions, the Edmonton market area registered 200 transactions over $500,000 for a total investment value of $791 million in 2017's third quarter.
The numbers represent a 41 percent increase from the second quarter and a 25 percent increase from the same quarter last year. The market was buoyed by large transactions in the office sector, with 19 deals worth a total of $109 million, a 244 percent increase from the last quarter. The highrise tower at 9888 Jasper Avenue was the biggest office transaction, selling for over $60 million.
A noteworthy performance in the retail sector strengthened the quarter's results further. There were 47 retail transactions worth a total of $246 million, signifying a 49 percent increase from Q2 and a 31 percent increase from Q3 2016. By total dollar volume, the retail sector took a 31.1 percent slice of the pie.
Investment in the residential sector ballooned 28 percent from the previous quarter, seeing 15 transactions worth a total of $46 million. ICI (industrial, commercial, institutional) land jumped 74 percent after 59 transactions and $152 million were recorded. A $65 million transaction that saw the Metterra, Varscona and Matrix hotels change hands boosted the hotel sector's share of total dollar volume to 9.4 percent.
The only sector that posted a decline from Q2 was the industrial sector, which witnessed a 44 percent drop in dollar volume. The 46 transactions that did take place were worth $112 million. A dozen transactions in the apartment sector totalled $51 million, and though those numbers are up 36 percent from Q2, they represent a 40 percent fall from the year before.