In the third quarter of 2024, the Edmonton office vacancy rate decreased from 18.38% to 18.00%; a total of 135,359 SF of positive absorption. The Downtown Office Market vacancy rate increased from 18.26% to 18.60%, marking a 61,277 SF increase. This rise is primarily due to trailing lease obligations returning to the market in the Financial District. Whereas in the Suburban Office Market, the vacancy rate decreased from 18.58% to 17.00%, reflecting 170,522 SF of positive absorption. As we approach the end of 2024, the Edmonton office market remains relatively stable. We anticipate further suburban growth, driven by tenant preference for flexible, cost-effective solutions. However, with substantial trailing lease obligations affecting the downtown market, vacancy rates may rise. The suburban market’s resilience suggests it will continue attracting tenants, positioning it as the preferred location for occupiers moving forward.
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