Edmonton Industrial Figures Q4 2025

‒    Edmonton’s industrial market experienced 34,000 sq. ft. of negative absorption in Q4 2025. The availability rate increased by 30 basis points (bps) and the vacancy rate increased by 10 bps. The market ended the year with 1.5 million sq. ft. of positive absorption with most submarkets showing gains.

‒    A strong performance was witnessed in the Southside submarket, which recorded almost 1.1 million sq. ft. of positive absorption in 2025, marking the highest year-end total since 2023.

‒    Over the course of 2025, 1.9 million sq. ft. of new supply was added to the market. This was a 262,000 sq. ft. increase over 2024. For the first time since 2020, new supply outpaced absorption throughout the entire year.

‒    There is approximately 852,000 sq. ft. currently under construction, marking the first year-end total below a million sq. ft. in nine years and the lowest year-end construction total observed since 2016.

‒    Declining construction numbers, particularly the limited supply of speculative construction may lead to a more robust owner-user market in the near to medium term and will likely contribute to rental rates growth in 2026 and 2027.