With the provincial election results in the rear-view mirror, it’s worth noting a peculiar outcome that happened in the Edmonton region.
Consistent with the 2015 election, Edmontonians voted resoundingly in favour of the NDP’s. The surrounding municipalities, however, bucked that trend and voted for change. As Graham Hicks of the Sun pointed out, 19 out of 20 ridings in Edmonton went NDP. In the surrounding areas, 15 out of 16 went UCP. Indeed, Edmonton proper is an island of orange in a sea of blue.
So with areas like Nisku, Leduc and Acheson (and the correspondingly large industrial bases) supporting the industry-friendly Jason Kenney, there is clearly a hope – if not outright expectation – that an increase in business activity is forthcoming.
And as a benchmark for where it stands before any of his policy decisions can be implemented, we assembled market data for both Nisku / Leduc’s and Acheson’s industrial real estate market.
You might be surprised to see how each market is faring.
Leduc / Nisku
|Current||5 Year Average|
|Asking Rents (Net)||$13.32||$12.49|
Parkland County (Including Acheson)
|Current||5 Year Average|
|Asking Rents (Net)||$14.01||$14.33|
There is no denying the overall impact a government can have on the overall industry, however the charts above continue to emphasize a long-running theory of ours that the underlying price of oil is the single largest determining factor for Greater Edmonton’s commercial real estate market.
That said, we’ll be closely watching how the UCP government affects the economy, and even more specifically how the industrial markets in Edmonton, Nisku / Leduc and Acheson respond in the future.
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CoStar Realty Information (734 industrial properties surveyed in Leduc County & 377 industrial properties surveyed in Parkland County).
Chad GriffithsPartner, 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 BrownPartner, 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 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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