Construction Project Update: Whitemud & 75th Street

The Valley Line LRT is part of the City of Edmonton’s “commitment to grow green and create a compact, more integrated urban environment where people have an opportunity and choose to use alternative transportation modes.” Originally, Edmonton’s LRT system consisted of only the Capital Line, which ran from the northeast through downtown to the university[…]

Edmonton vs Calgary: Commercial Real Estate Market Update

Edmonton and Calgary have a healthy rivalry, but it’s important to note how similar the two economies are.  As we have written about extensively, Edmonton’s economy is positively correlated to the price of oil, so it should be of little surprise to see how similar Calgary’s market has responded to the collapse of oil prices[…]

Oil Prices have Increased 70% in the Past Year

Hillary Clinton is not President of the US, and Amazon did not choose Edmonton for it’s first western Canadian fulfillment centre.  While we struck out on those two guesses, we also predicted back in November that oil would hit $70 / barrel sometime this year (which it did this week, marking a 70% increase since 2017).   While we were wrong[…]

Edmonton Commercial Property Taxes are Rising 4x Faster than Inflation

The City of Edmonton just released the tax rates for 2018, and it ain’t pretty. Before we get into the meat of the article, we’ll first provide a brief overview of how the tax rate is determined: The City prepares a budget to estimate how much it will cost to provide municipal services; Somewhat simultaneously,[…]

Idle Trains, Stalled Pipelines and $70 Oil

There’s an optimism in Edmonton’s industrial market that we haven’t seen since 2014.  Not that it’s anywhere close to the flurry of activity we saw prior to the plunge of oil prices, but it’s markedly better than it’s been the past few years.  If we were to do a rough sketch of the activity we’re seeing,[…]

Mark Zuckerberg, the Trans Mountain Pipeline, and Edmonton Commercial Real Estate

Okay, it might be a stretch connecting Mark Zuckerberg to Edmonton’s commercial real estate market, but stick with us for a minute. During his congressional hearing, Mark Zuckerberg was asked a terse question: “Will you commit to changing all the user default settings to minimize to the greatest extent possible the collection and use of users’ data?”[…]

More Office Inventory Coming to West Edmonton

Rampant office vacancy and astonishing low office sale prices have dominated headlines these past three years.   As an example, the Milner Building on 10030 – 104 Street (177,645 square feet) sold last year for $7,500,000.  It was also purchased six years earlier for $40,170,000 (an 81% price drop). As we wrote about previously, that particular building, along with three others sold at the[…]

Oil Update – Edmonton Commercial

It may not feel like spring quite yet, but the drilling industry is in the midst of the annual “spring break-up”.  Around this time each year, the earth thaws and the ground becomes soft, muddy and generally harder to work in.  It is a period of considerable slow down, as evidenced by recent statistics showing roughly 3/4[…]

Several Large Commercial Sales Kick Off 2018

It’s interesting how expensive homes always seem to make the news, but commercial transactions with much higher values happen regularly.  By comparison, there have been two residential properties that have sold over $2M this year ($2M and $2.3M, to be precise), whereas there have been several commercial sales well in excess of that. For example, the[…]

Tension is Growing in the Sandbox

One marvel of human progress is how interconnected global trade has become.  The amount of free trade agreements in Canada provides a staggering glimpse into all the different agreements that exist worldwide.   The prevailing wisdom suggests global trade is a giant sandbox, with everyone having a collective goal of making the sandbox bigger and more efficient. […]