Edmonton's suburban office market, particularly Sherwood Park, are leading absorption levels in the Alberta capital while the downtown area is merely "maintaining", according to a report from Avison Young.
The overall Edmonton office vacancy rate is 8.7 per cent, the highest among major Western Canadian cities. The downtown vacancy rate rose to 7.7 per cent in the third quarter, up from 7.5 per cent in the preceeding three- month period. The downtown saw negative absorption of 21,500 square feet in the third quarter.
In contrast, suburban markets saw 33,206 square feet leased up in the third quarter, driving the vacancy rate down 0.4 per cent to 10.4 per cent. Most notable is Sherwood Park, which saw a 3.4 per cent decline in vacancy rates to 12.4 per cent, Avison Young reports. The commercial realtor is bullish on the Edmonton office sector, noting that the city is forecast to post the largest GDP growth in Canada this year, at 4.6 per cent.
