While Calgary's residential vacancy rate was up this spring, Edmonton's multifamily sector appears to be stabilizing, even as vacancy increases. Multifamily properties drew more interest from investors in the first half of 2010, according to Avison Young.
The commercial real estate firm says demand is increasing in Edmonton quality investment product. The overall vacancy rate in Alberta's capital increased from 4.7 per cent a year ago to 5.2 per cent at the end of June, Avison Young reports. Still, the price-per-door on multifamily building sales was up about 32 per cent.
That reflects both the higher-end nature of a couple of transactions as well as a general willingness for landlords to pay more. "Despite a higher vacancy rate, the Edmonton multifamily market is still considered to be in reasonably good health," said Avison Young principal Paul Chaput. "In the past six months, we've seen a strengthening demand for multiresidential investment properties as the Alberta economy continues to recover."
It is expected that vacancies will move closer to 4 per cent in the next six months, which would mark the lowest level in Edmonton since year-end 2008. Improving market conditions have increased the appetite of many large institutional buyers who are looking to add quality product to their portfolios, according to Chaput.
from Western Investor September 2010
