2018 Has Seen an Increase in Commercial Sales Activity

As oil prices have increased over the past year, so has commercial real estate activity in Edmonton.

2018 Mid-year2017 Mid-year2016 Mid-year
Land$228,859,462$132,533,862$189,846,527
Buildings$1,082,145,037$1,077,442,119$675,904,126
Total$1,311,044,499$1,209,975,981$865,750,653

It’s not just the average sale price that has increased either, as the number of total sales has increased from 268 for the first half in 2016 to 334 so far in 2018.

Here were some of the notable sales year-to-date:

Office:

• 10201 Jasper Ave – Enbridge Tower – $22,000,000 ($119.53/SQ.FT.) – Vacant on sale
• 11120 178 St – $8,135,000 ($153.49 / sq ft)
• 10703 109 St – $2,550,000 ($239.02 / sq ft)
• 10145 81 Ave – $2,535,000 ($239.02 / sq ft)
• 9924 110 St – $2,350,000 ($257.17 / sq ft)

Industrial:

10402 184 St – Sunwapta Business Centre – $62,954,334 ($151.49 / sq ft.) 47% vacant on sale
• 6510 20 St – 4 property portfolio (2 Edmonton / 2 Calgary) – $61,421,200
• 9303 28 Ave – Parsons Business Centre – $25,000,000 ($144.13 / sq ft.)
• 16311 117 Ave – 3 property portfolio – $21,600,000 ($67.53 / sq ft)
• 18131 118 Ave – $13,300,000 ($132.19 / sq ft)

Retail:

• 2803 Millwoods Road – Kameyosek Shopping Centre – $18,850,000 – 6.17% cap rate
• 16320 95 Ave – Westgate Shopping Centre – $17,200,000 – 6.82% cap rate
• 14403 Miller Crossing – Miller Crossing – $13,800,000 – 6.02% cap rate
• 5682 75 ST – Bbq Country / Cycle Works – $13,000,000
• 2 TOYS “R” US locations – $24,260,000
• 2008 91 ST – Staples – $10,250,000 – 7.13% cap rate

The data suggests the market is improving, and we are optimistic we’re entering an economic recovery.  There are, however, a number of things we’re also keeping an eye on through 2018:

1.  Capital fleeing a politically unstable country;
2.  Rising interest rate environment;
3.  Property taxes rising 4x faster than the rate of inflation;
4.  Rapidly increasing minimum wage;
5.  Provincial carbon tax;
6.  Heavy crude discount (differential between WTI and Western Canadian Select).

 

 

 


Source:

The Network

Disclaimer:

Information has been obtained from sources deemed reliable but is not warranted to be so.  Views and opinions are solely of the authors and do not represent any company or organization.  View full disclaimer here.

Our Team

Chad Griffiths

Chad Griffiths

Partner, SIOR, CCIM

Chad is a partner with NAI Commercial Real Estate and focuses on the Greater Edmonton area. Chad entered the industry in 2004 and has completed over 400 commercial transactions with clients ranging from small, local companies to large institutional owners. Chad has been a top 15 producer with NAI Canada-wide since 2013.

Ryan Brown

Ryan Brown

Partner, BCom, SIOR

Ryan is a partner with NAI Commercial Real Estate in Edmonton and is currently ranked nationally as one of NAI's top advisors. Having executed in excess of $100 Million worth of sales transactions and over 2 Million square feet of lease transactions, Ryan has developed a firm understanding of asset evaluation and an aptitude for building design, functionality, and long-term practicality.

Darcie Bouteiller

Darcie Bouteiller

Associate

Darcie is a licensed Commercial Real Estate Agent in the Province of Alberta with a focus on the Edmonton market and its surrounding areas. Darcie accomplishes custom solutions for her clients through her personable nature and results driven attitude. Darcie can help if you are looking to invest in commercial real estate or are looking for representation for a sale or lease transactions.

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4 thoughts on “2018 Has Seen an Increase in Commercial Sales Activity

      • I do believe it is the main factor especially since we are Oil rich here in Alberta. I’m just wondering if there are other major factors outside of Oil such as the economy, foreign trade, etc. however I do know that those are also influenced by Oil prices too. That said, thanks for posting this.

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