With two consecutive increases in headlease and sublease vacancy in Q1 and Q2 2025 (4.0% and 4.3% respectively), Q3 has seen a drop in vacancy to 3.6% for the greater Edmonton area. We have seen a decline in sublease vacancy from 0.5% to 0.3% and a sharp drop in headlease vacancy from 3.9% in Q2 to 3.3% in Q3. With strong activity in the market, we have seen continued increase in the average rate per square foot from $10.90 in Q1, to $11.33 in Q2, with a further increase to $11.53 in Q3.
Mid-year sales activity continues to build on a very strong start to the year and commercial real estate investors remained extremely optimistic in the Edmonton market through the second quarter of 2025. From April through June, 183 transactions closed, bringing an additional $854.2 million in property and land sales. Compared to mid-year 2024, investment was up across all six asset classes we track, and this propelled year-to-date investment to an 80% year-over-year (y-o-y) increase in year-to-date investment from a little more than $1.9 billion at June 30th, 2024 to approximately $2.1 billion at the same time this year.
To learn more about our perspective on the Edmonton industrial market, download our Q3 2025 Market Report.