Edmonton Industrial Figures Q1 2025

–       Uncertainty has started to creep into the Edmonton market, resulting in a slow quarter for leasing, though absorption was buoyed by pre-leased new supply entering the market. Availability and vacancy rates increased slightly, by 20 basis points (bps) and 10 bps respectively, but remain in the range of 10-year lows.

–       The Southside submarket posted its strongest quarter since Q4 2023 with just over 600,000 sq. ft. of positive net absorption. Nisku-Leduc recorded over 400,000 sq. ft. of positive net absorption this quarter, mainly comprised of small bay manufacturing space.

–       Small bay spaces dominated the market this quarter, with only one transaction over 50,000 sq. ft. Transactions of 25,000 sq. ft. and smaller comprised 63.2% of all transacted space across the market.

–       Over 1.1 million sq. ft. of new supply was delivered to market this quarter, representing the largest single quarter of deliveries since Q2 2023. Approximately 700,000 sq. ft. of that new stock, or 62.8%, was pre-leased.

–       Construction deliveries are expected to taper off with less than 800,000 sq. ft. scheduled for delivery throughout the rest of 2025. However, 44.8% of this new supply is already pre-leased.