Lethbridge is expected to be Alberta’s strongest municipal economy in 2017, according to ATB Financial’s chief economist, Todd Hirsch.
A recent Avison Young study adds that the city’s real estate markets are projected to “remain stable” in 2017, no small feat in Alberta this year.
“All [real estate] asset classes are trading at healthy levels in Lethbridge and are expected to continue to offer 6 per cent to 8 per cent capitalization rates through 2017,” the Avison Young study stated.
Lethbridge’s office market recorded a decrease in vacancy to 14.7 per cent in the third quarter of 2016, the study noted, but new tenants may find some great deals. “Tenants are still able to negotiate incentives, including free rent and higher tenant improvement allowances,” according to Avison Young.
In the retail sector, the Crossings shopping centre development continues and north Lethbridge sees the completion of the four-acre Legacy Gate retail development and the ongoing redevelopment of Centre Village Mall, the study noted.