Edmonton commercial real estate sales show signs of market rebound
Building values are way up, especially in the retail sector, while land prices are trending down
Transaction dollar volumes within the City of Edmonton are up 39 per cent for the first half of 2017, demonstrating optimism toward the city’s commercial real estate outlook.
A new mid-year report from local real estate investment data firm The Network shows sales volumes are enjoying an upward trend, led by an increase in retail building values. Mid-year dollar volumes are sitting at $1.2 billion over all sectors, up from $189.85 million the year before.
Retail transaction value increased 59 per cent over 2016, rising from $158,933,000 to $370,972,034 in 2017. There have been 41 retail transactions so far this year, versus 33 at the 2016 mid-year point. Thirty-two of the 41 transactions were 7-Eleven convenience stores across Edmonton.
Multi-family values have also increased, led by two major high-rise apartment sales: The Concord Tower near the University of Alberta and Edgewater on Jasper in Edmonton’s downtown east side neighbourhood. The two sales account for $203,000,0000, or 63 per cent, of total dollar value.
Land sales, however, are trending down.
Total land sales dollar volumes have dropped 30 per cent over last year, led by a 26 per cent decrease in per-square-foot commercial land price. Per-square-foot value in 2016 averaged at $68.95. In 2017, the average price was $50.95.
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