The rising fortunes in the oilpatch are reflected in a reduced industrial vacancy rate in the Greater Edmonton area for the first quarter of 2011.
The industrial vacancy rate fell from 3.58 per cent at the end of 2010 to 3.49 per cent, despite the fact it actually rose outside the city in areas such as Leduc/Nisku.
The new figures were reported in the 2011 Q1 update from Colliers International.
The commercial real estate giant expects vacancy rates to tighten a little more in 2011, and for rates to adjust upward somewhat.
"Edmonton's surrounding markets have seen an increase in demand for shop space with yard, but there is a shortage of supply in this regard as the oil and gas service sector is getting back to work," Colliers stated.
"Tenants are looking for specialized space that meets the needs of their work, including heavy power, good floors, and big yards. Lack of supply has tenants looking for raw land appropriate for construction of typical shop space. In addition, land is being perused once again for lay down and assembly yards.
"As in Edmonton proper, vacancy is projected to decrease in the surrounding markets and there will be an increase in positive absorption. Lease rates and sale prices are going to increase slightly as the oil and gas sector gets busier. As well there is an expected shortage of facility alternatives, especially shop facilities."
from Western Investor July 2011