Edmonton's strong commercial real estate market is proving frustrating for investors trying to jar properties from the hands of owners. The problem: landlords don't want to let go of cash-generating properties.
A survey by CBRE Limited notes that total investment volumes in Edmonton are down 7.3 per cent in the first 10 months of this year, compared with 2010, though the number of investment sales has soared 76.4 per cent to 411 transactions. "The decline in volume is due to the fact that investors want to hold onto assets in this market [while] demand continues to outstrip supply across all product classes," said CBRE vice-president and Edmonton manager Dave Young.
Based on 'done deals' reported to Western Investor, one of the hottest sectors in Edmonton is apartment buildings, which are now trading north of $130,000 per suite for better buildings.
Calgary saw 221 investment sales of commercial property in the first 10 months of 2011, down 13 per cent from a year earlier, but sales volume was up 31.3 per cent to $1.7 billion compared to the same period last year. The action here is in the office sector, with a 250.4 per cent spike in office building sales, which includes the sale of 550,000 square feet in the SF Gulf Canada office tower for $178 million.
For a complete outlook on the commercial real estate market in Western Canada for 2012, see the January issue of Western Investor, out early in the new year.
