Weaker economy weighs on Edmonton CRE market

Commercial real estate activity in the City of Edmonton was weak in the first half of 2019 compared to the same period of 2018.

TN Network’s Mid-Year 2019 report shows a 25% drop in overall sales and a 40% drop in total dollar volume year-over-year. It says that weaker economic activity in the region is the main reason for the decline.

The previous year’s figures were also boosted by some significant sales including the $400 million Edmonton Tower.

Total land sales at mid-year 2019 were $224,889,164 from 74 transactions, down from $228,859,462 from 88 transactions in the same period of 2018.

Total building sales were $555,591,227 from 175 transactions, down from $1,082,145,037 from 246 transactions a year earlier.

That means total sales of $780,480,391 from 249 transactions, down from $1,311,044,499 from 334 transactions in H1 2018.

Property types

Total office sales were down 41% from 2018 with dollar volumes having sharply declined since 2017 dropping 84% in 2019 & 60% compared to 2018.

Office sales totaled $21,842,500 from 10 transactions in the first half of 2019 compared to $54,490,000 from 17 transactions in the same period of 2018.

Multi/Bay Warehouse total sales have decreased 41% compared to 2018 ($161,733,944 from 34 transactions) but the total sales are up 7% from 2017 & the total dollar volume is still well above 2017 numbers. However, the dollar volume decreased 61% from 2018.

Retail commercial transactions decreased by 72% in total dollar volume compared to 2018 and 79% from 2017.

Multi-family sales totaled $221,298,712 from 29 transactions, down from $336,541,988 from 33 transactions a year earlier but walk-Ups were one of the bright sports for the first half of 2019 with total dollar volume up 144% from 2018 while total sales increased by 14%.

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