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
Copyright © Western Investor
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.