Edmonton commercial real estate market reaches five-year high in 2018
Edmonton saw dollar value for commercial real estate sales reach its highest level in five years, up 30 per cent year-over-year
Copyright © Western Investor
Transaction value in Edmonton was up 30 per cent in 2018, indicating a second consecutive year of positive recovery for the city.
by real estate research firm The Network
places 2018’s total dollar volume at $2.87 billion – up from $2.2 billion in 2017. Number of sales increased also, up 13 per cent year-over-year.
Nearly every commercial sector saw increases across the board.
Edmonton’s impressive 2018 showing follows a 59 per cent decline in land sales dollar volume between 2014 and 2017. Land sales rebounded significantly in 2018, increasing 60 per cent over the year. Building sales were up 25 per cent since 2017, reaching 2.35 billion – the highest transaction value since 2008.
The multi-family market increased overall in both sales and dollar volume. Total dollar volume increased 140 per cent, led primarily by nine high-rise apartment sales totaling $331 million.
The city’s rental market saw increased demand, with the apartment vacancy rate dropping to 5.3 per cent from 7 per cent in 2017.
The industrial market experience a boost from owner-users showing increased interest in the warehouse submarket. Transaction volume increased from $964 in 2017 million to just over $1 billion in 2018.
Moving forward into 2019, The Network forecasts another year of growth and recover, at a more moderate level.
“2019 overall is forecasted to be relatively stable and we may see a decline in overall sales volumes,” the report reads.