Market overview

01 Northwest and Central: driving momentum

Northwest Edmonton is driving the city's industrial market forward with a strategic blend of patience and foresight. As developers carefully manage supply and demand, avoiding market oversaturation, Northwest recorded a significant 302,000 sf of positive absorption this quarter. At the same time, with 198,000 sf of space under construction across both Northwest and Central Edmonton, the region remains well-positioned for sustained growth without jeopardizing stability.

Leasing activity in the area remains strong, supported by competitive rental rates that average $11.45 per square foot (psf), well below the market average of $12.70 psf. This makes Northwest an appealing option for tenants, who have access to a diverse range of logistics, specialized industrial, and flex spaces without sacrificing quality. Moreover, notable Q4 transactions demonstrate Northwest’s ability to attract substantial deals and meet the growing demand for industrial space.

 

02 Edmonton’s industrial demand outpacing supply

The Greater Edmonton area has experienced significant leasing activity over the last year, with demand consistently outpacing supply. The lag in new product entering the market has become increasingly evident, particularly as strong leasing activity persists. Acheson exemplifies this trend, with 440,000 sf absorbed year-over-year (YOY), while only 380,000 sf was delivered. This trend of strong absorption exceeding limited supply highlights significant development opportunities in Greater Edmonton. 
The market demonstrated its strength in 2024, achieving upwards of 1.5 million square feet (msf) of positive absorption, showcasing its versatility for both tenants and developers. The Greater Edmonton market boasts a 71.9% pre-leasing rate for under-construction properties, totaling 615,000 sf. South Edmonton leads in new construction, with specialized industrial supply accounting for over 50% of inventory while maintaining a low 2.0% vacancy rate.

 

03 Streamlining development for economic growth

The City of Edmonton is on the verge of a major transformation aimed at streamlining the development approval process and addressing issues such as lengthy start-up procedures and a lack of ready-to-develop land. Relative to other markets, land is cheap and plentiful, with  Edmonton poised to carry forward the momentum of strong leasing and development activity.

This streamlined process will help reduce lagging inventory, address ongoing market needs, and create greater predictability for project execution timelines. A notable example is The Brick’s 500,000 square-foot building in Northwest Edmonton, which recently relocated its corporate office within city limits. By improving efficiency and reducing delays, Edmonton can ensure businesses not only select the city as their destination but also have the resources to scale quickly and meet market demands. These initiatives position the Greater Edmonton area as a leader in industrial growth and innovation.