While Edmonton's building permit totals may be down slightly from 2010, there's still demand for building space, particularly in the industrial sector, where Colliers International recently reported lower vacancy rates for the overall Edmonton area market and most of its eight sub-markets.
According to the latest industrial market update for Edmonton from the property giant, the overall vacancy rate fell to 3.38 per cent at the end of the second quarter of 2011, down from 3.49 per cent at the end of the first quarter and 4.27 per cent from a year ago.
Only in Leduc-Nisku did the vacancy rate jump significantly, but that was offset by a tightening market in central and southeast Edmonton, according to Colliers.
The asking price for space ranged from a low of $6.95 per square foot for large spaces in northwest Edmonton to a high of $15 per square foot in new construction in Sherwood Park, east of the city.
Industrial demand in Edmonton is typically driven by the oilpatch, and with the price of a barrel of oil hovering at close to US$90, Edmonton's industrial market may tighten up further.
Notable land sales saw prices ranging from $300,000 to $652,660 per acre. The latter price was for 8.95 acres on the west side of Edmonton.
Building sales produced per-square-foot prices from $76.31 to $207.56. The high-end price was paid for a $28.75 million building in the southeast by PIRET Holdings Inc.
– Compiled by David Husdal
from Western Investor October 2011
