Professional Documents
Culture Documents
January 2019
The Network is pleased to issue our twelfth edition of The Network Market Overview report. This report will
provide a general synopsis of overall sales activity observed within the City of Edmonton during 2018, with a 5
year summary also being presented to assist in gauging activity in 2018 in relation to the preceding 4 years. The
Market Overview will key on overall sales activity and trends within the City of Edmonton as well as an analysis
of a number of sub-sectors.
$3,500 700
Industrial
Millions
$1,000 200
$500 100
Retail
16% Condos $0 0
23% 2014 2015 2016 2017 2018
Office 6%
Total $ Value No. of Transactions
2018 represented the second year of economic recovery within the Province of Alberta and City of Edmonton.
The economic recovery has exerted a positive influence on the city’s real estate market. The overall dollar value
of sales citywide was up approximately 30% as compared to 2017 The total number of sales was up 13% from
2017 and this represents the largest total of overall sales since 2012-2014.
Following 2014 a steep decline in land sales dollar volume was observed, dropping 59% between 2014-2017.
The land market has rebounded with a 60% increase over the past 12 months. The total number of sales also
increased 32%.
Total Land $ Volume & No. of Transactions 2018 Land Sales Distribu$on
$900 250
Yearly Totals Millions
No. of Transactions
$700 200 26%
21%
$600
150
$500
$400
100 Misc.
$300 .05%
$200 50
$100
Urban Dev. Commercial
$0 0 30%
23%
2014 2015 2016 2017 2018
The total number of building sales is up slightly from 2017. The overall volume of sales on a dollar basis was up
approximately 25% and represented the highest numbers seen since 2007 ($2,983,722,556). These numbers were
achieved due to a series of large dollar sales in 2018.
450
No. of Transactions
$2,000 400
350
$1,500 300
250
Retail $1,000 200
22% 150
$500 100
50
$0 0
Industrial
24% 2014 2015 2016 2017 2018
Mul6-Family
Total $ Value No. of Transactions
14%
2018 Market Overview Page 3
MULTI-FAMILY MARKET
OTHER APTS
HIGH RISE
High Rise $ Value $52,751,800 $60,750,000 $85,000,000 $203,000,000 $331,516,000
No. of Sales 2 3 3 2 9
ROW HOUSE
Row House $ Value $22,241,200 $10,140,000 $45,000,000 $5,000,000 $0
No. of Sales 3 2 2 1 0
WALK-UP/RETAIL
Walk-up/Retail $ Value $39,100,216 $5,833,387 $3,300,000 $30,015,000 $32,015,000
No. of Sales 4 2 2 2 6
MISC.
Misc. $ Value $890,000 $32,422,275 $0 $332,000 $210,309,000
No. of Sales 1 2 0 1 3
Sub-Total Other
Total Other $ Value: $114,983,216 $109,145,662 $133,300,000 $238,347,000 $573,840,000
Total No. of Sales: 10 9 7 6 18
TOTAL
Overall Total $ Value: $330,307,716 $329,755,492 $473,199,031 $450,111,401 $695,555,380
Total No. of Sales: 71 58 63 44 64
$800,000 80
Thousands
$700,000 70
$600,000 60
No. of Transactions
$500,000 50
Yearly Totals
$400,000 40
$300,000 30
$200,000 20
$100,000 10
$- 0
2014 2015 2016 2017 2018
8.00
$130 60
7.00
No. of Transactions
50 6.00
$125
40 5.00
$120
30 4.00
$115 3.00
20
$110 2.00
10
1.00
$105 0
0.00
2014 2015 2016 2017 2018
Average $/Suite No. of Sales 2014 2015 2016 2017 2018
The multi-family market in 2018 saw a series of nine High-Rise Apartments sales totaling $331,516,000. These
sales resulted in the overall dollar value of sales surpassing previous years totals. Activity in walk-up apartments
however dropped off sharply. CMHC’s 2018 survey confirmed a vacancy level of 5.3% for the Edmonton
CMA, well below the 7% from 2017. Average rents increased in 2018 by 1.2%. Capitalization rates have
continued to decline year over year dropping to an average of 5.47%. The average sale price per suite has
rebounded back, up 5% from 2017 and on par with previous years.
The following will summarize some of the notable sales which took place during the year:
INDUSTRIAL MARKET
SINGLE TENANT
Sales Volume $45,669,775 $53,935,180 $107,148,445 $70,750,000 $15,000,000
Average $/Sq Ft $208.75 $319.18 $173.19 $249.80 $176.08
Average Cap
Rate 6.65 6.49 6.64 5.98 6.69
No. of Sales 10 6 11 9 4
$600 120
Yearly Totals Millions
$500 100
No. of Transactions
$400 80
$300 60
$200 40
$100 20
$- 0
2014 2015 2016 2017 2018
Total $ Value No. of Sales
2018 Market Overview Page 6
Industrial Owner User Unit Price & No. Of Industrial Capitaliza/on Rates
Transactions
$250 90 8
80
$200 70
No. of Transactions
7
Yearly Totals
60
$150
50
40
$100 6
30
$50 20
10
5
$0 0
2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
The industrial market in 2018 was again led by a very active owner/user warehouse category. An increase in the
multi-bay investment category was also evident. The total number of sales in the multi-bay sector doubled and
the average capitalization rate decreased from 7.38% in 2017 to 6.99% in 2018. The owner/user warehouse
category saw increases in both dollar sales volume and total number of sales but decreased 16% in terms of the
average price per sq.ft. from 2017. Activity levels were also down once again in the single tenant category and
the average capitalization rate increased to 6.69% in line with levels from 2013-2016. Of note is that the total
dollar volume for industrial buildings increased by 59% in 2018 and total sales increased slightly.
COMMERCIAL MARKET
OWNER/USER
Sales Volume $117,072,671 $74,566,000 $217,050,627 $232,821,862 $168,784,579
No. of Sales 36 33 55 57 65
$1,200 160
Millions
140
$1,000
120
No. of Transactions
$800
100
$600 80
Yearly Totals
60
$400
40
$200
20
$0 0
2014 2015 2016 2017 2018
Total $ Value No. Of Transactions
High-Rise
Office
11%
General Retail
Shopping 61%
Downtown Centres 22%
Suburban
Office
Office 78%
11%
Misc. 17%
2018 Market Overview Page 8
$250 70
Millions
$900 70 60
$800 $200
60 50
No. of Transactions
$700
No. of Transactions
$600 50 $150 40
$500 40
$100 30
Yearly Totals
Yearly Totals
$400 30
$300 20
20 $50
$200 10
$100 10
$0 0
$0 0
2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Total $ Value No. Of Transactions
Total Sale $ No. Of Transactions
The commercial market was very active again in 2018 and led the market in general comprising 44% of all
building sales. The total number of sales was up 4% and the total dollar value was up 7%. The total dollar
volume however was influenced heavily by the sale of The Edmonton Tower for $400,000,000. That sale alone
contributed a 41% increase in office sales dollar volume from 2017. The downtown office market wasn’t as busy
as the previous year with only three transactions which included the Enbridge Tower and as mentioned
Edmonton Tower being the most significant. 22 shopping centre sales occurred in 2018, averaging a 6.10%
capitalization rate, again highlighting the strength of this market in recent years.
The following will highlight some of the notable transactions which occurred during the year:
Industrial and commercial (office and retail) condominiums have become a significant component of the
market, and this has been particularly true over the past 5 years. Recent trends in this sector are outlined in the
following graphs:
Overall activity in the condominium sector for 2018 was essentially on par with the previous year. The only
noticeable change was the decline in the number of office condominium sales which were down 33% and the
average price per sq.ft. dropped 5% from 2017. Retail had a slight increase for total sales and a 12% increase for
average price per sq.ft. which was inflated by a sale for $1,597/sq.ft. along Jasper Avenue. The industrial sector
has been stable over the last 3 years.
2018 Market Overview Page 10
INDUSTRIAL LAND
We have seen rises in all categories this year for the industrial land market, with the total dollar value increasing
by over 140%. The total number of sales was up slightly and the average sale price per acre was also up slightly
by 2% from 2017. Sales during the year included a 61.53 Acre site purchased in the Golden West Business Park
for future development of the 140 Avenue Business Park ($28,000,000).
The following will highlight some of the notable transactions which occurred during the year:
This market sector involves raw, unserviced land typically situated within peripheral areas of the city. Lands of
this type can be allocated for residential, industrial or commercial use. This does represent a significant aspect of
the market and the following will highlight activity in this sector:
$400 60
$350
50
$300
40
$250
Millions
$200 30
$150
20
$100
10
$50
$0 0
2014 2015 2016 2017 2018
Activity within the urban land market was influenced by three major sales from Walton Developments totaling
$72,476,721 in dollar volume and contributed to the 2018 total dollar volume increasing 40% from 2017. The
price per acre decreased 11% from 2017 and 22% from 2016. The number of sales has increased 43%.
2018 Market Overview Page 12
The following will highlight the total number of sales over the past 5 years as well as the total dollar volume of
sales:
$160 60
$140
50
$120
40
$100
Millions
$80 30
$60
20
$40
10
$20
$0 0
2014 2015 2016 2017 2018
The commercial land market was very active during the year. There were a series of six sales by Delcon in new
developments in the southwest area of Chappelle and the northwest area of Mistatim contributing $31,025,600
to the overall dollar volume.
The following will highlight some of the notable transactions which occurred during the year:
The following will highlight the total number of sales as well as the dollar volume of sales over the past 5 years:
2014 2015 2016 2017 2018
Total $ Value $109,459,459 $108,745,143 $108,745,143 $76,060,233 $136,355,991
No. of Transactions 37 43 43 32 44
$180 80
$160 70
$140 60
$120
50
Millions
$100
40
$80
30
$60
$40 20
$20 10
$0 0
2014 2015 2016 2017 2018
Activity in the multi-family land market has rebounded after a decline in 2017. The total dollar value increased
by 79% and the number of sales also increased by 38%. The total dollar volume is significant, with the numbers
being on par with years 2013-2014 before the steep decline in years 2015-2017. 9 transactions occurred in and
around Downtown with 7 occuring in the Oliver area. Of note 10142/56 Clifton Place sold twice in 2018
($9,000,000 & $10,015,715).
The following will highlight some of the notable transactions which occurred during the year:
SUMMARY
The Network, in our year end forecast for 2018 had projected a growth year. The Network forecast generally
proved to be accurate for both land and buildings. For 2019, a review of economic forecasts would indicate that
economic recovery and growth will be sustained but at a moderate level. Most forecasters are projecting growth
of 1.5% to 2% for the province but higher rates of 2.3% - 2.6% projected for the city of Edmonton. 2019
overall is forecasted to be relatively stable and we may see a decline in overall sales volumes.
The Network is pleased to also announce the release of a new website feature, Network Analytics. Along with a
property purchaser breakdown and asset class disection, a multi function analysis/breakdown for sales statistics
of various cateegories used by real estate professionals can also be found. Below is a breakdown of 2018 multi
family high-rise apartments showing, the number of sales, total dollar volume, average sale price, average cap
rates, average unit price, etc.
The Network:
All opinions, estimates, data and statistics is believed to be reliable, however, The Network makes no guarantees, representations or warranties
of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any
interested party should undertake their own inquiries as to the accuracy of the information. The Network excludes unequivocally all inferred or
implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
Possession of this report or copies thereof does not carry with it the right of publication.
2018 Market Overview Page 15
SUBSCRIPTION:
Send Email to: thenet@gettelnet.ca
www.gettelnetwork.com
THE NETWORK
10129 – 161 Street NW
Edmonton, AB T5P 3H9
Ph: (780) 425-3939
All opinions, estimates, data and statistics is believed to be reliable, however, The Network makes no guarantees, representations or warranties
of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any
interested party should undertake their own inquiries as to the accuracy of the information. The Network excludes unequivocally all inferred or
implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.
Possession of this report or copies thereof does not carry with it the right of publication.