Edmonton, March 8, 2013: Today, the REALTORS® Association of Edmonton Commercial Division released for the first time a semi-annual update on commercial real estate activity within the City of Edmonton. The report includes a synopsis of commercial and industrial activity over a five-year period and details of various sub-sectors as recorded in Land Titles records when the title to the property is transferred to the buyer.
The total number of sales of commercial and industrial land and buildings in Edmonton in 2012 was the highest in five years at 648 sales. The value of those sales, at $2.45 billion, was marginally lower than the five-year high point in 2011.
“Edmonton has recovered from the economic woes that depressed the 2009 market period,” said Mike Eurchuk, Chair of the Commercial Division. “There has been a sharp increase in land sales and the multi-family market is at a five year high.” The number of land transactions is up 33% from 2011 and the value of the land sale is up $139 million. There were 81 multi-family unit sales in 2012 valued at $227 million (up 6% from 2011).
The number of transactions and the total value was up in every sub-sector including multi-family, industrial and commercial buildings; industrial, commercial, urban development and multi-family land; and industrial/commercial condominiums.
“The fact that there is an increase in the sale of land indicates the optimism in this market,” said Eurchuk. “Business people are not just buying existing property for immediate use but are investing in land for future developments at both the commercial and industrial levels.”
Economic forecasts would indicate that the Edmonton area will continue to exhibit strength in 2013 with growth levels on par with 2012 being projected. Demand is expected to remain high in virtually all sectors of the market and particularly in investment type properties where there is considerable institutional money chasing few properties.