Edmonton Real Estate Investments Jump to $1.46B

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Surge in commercial real estate transactions in Edmonton for Q2 2022

Impressive second quarter numbers in commercial real estate point to renewed investor interest in the Edmonton market. Jumping by more than $930 million to $1.46 billion, 2022’s second-quarter investments were driven by strong interest in industrial and multi-family properties, as well as high demand for commercial land for sale in Edmonton.

According to Nathan Gettell, president of The Network – an Alberta commercial real estate data analysis company – industrial, multi-family properties, and land sales increased by $440 million, $180 million, and $159 million respectively.

Major hydrogen power project fuels Edmonton’s capstone land sale transaction of 2022 so far

A $60 million ($399,627 per acre) purchase by Air Products Canada Ltd. of 150 acres located at 13004 33 Street NE, Edmonton is the big ticket transaction of 2022 to date. This land will be home to the world’s largest net-zero hydrogen network, which is expected to be operational in 2024.

This exciting project aims to place Edmonton at the centre of industrial and transportation hydrogen production for all of western Canada. The facility is projected to be the most competitive and lowest-carbon-intensity hydrogen network in the world.

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Northeast Edmonton land recently purchased for potential future residential development

In response to the ongoing demand for housing, land in Edmonton also continues to be purchased for residential development.

Back in Q1 of this year, 60.6 acres of agricultural land was purchased near the North Saskatchewan River at 18103 17 Street NE for $3.35 million. This land, located just north of The Quarry golf course could become a residential subdivision in the future.

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Commercial real estate investment up quarter-over-quarter in all segments

Despite a shift in the workforce to more remote work, even the office sector saw investment growth in 2022 with approximately $35 million in new purchases. Commercial condominiums increased in dollar volume by $25 million and retail increased approximately $80 million in new investment.

Overall, year-over-year sales activity increased 120 percent, which puts 2022 at the best mid-year level the market has seen since 2020.

What do commercial real estate trends tell us about the residential real estate market?

With inflation at its highest level in decades and interest rates rising in an effort to tamp down that inflation, many have questions about the impact on real estate markets, both commercial and residential.

While it will be important for investors to continue to monitor capital markets and the impact on commercial real estate over the next two years, in general, real estate will continue to be a solid investment. Real estate is often a safer investment than the stock market, particularly in an uncertain economy and with an impending recession.

Have questions about the real estate market? For 20 years Wally has been a trusted partner in residential real estate transactions and commercial land for sale in Edmonton and surrounding areas.
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