Source: EREB
The REALTORS® Association of Edmonton Commercial Division released the semi-annual update on commercial real estate activity within the City of Edmonton. The report includes a synopsis of commercial and industrial activity for the period ending June 30, 2015 as recorded in Land Titles records when the title to the property is transferred to the buyer.
The total number of sales (284) of commercial and industrial land and buildings in Edmonton for the first half of 2015 is down 9.27% when compared to the same period last year. For the first time in three years, the value of those sales has dipped below one billion dollars at mid-year. The 2015 total value was $911 million, 13.43% lower than mid-year 2014.
“With the drop in oil prices throughout the end of 2014 and beginning of 2015, we anticipated that commercial growth within the City of Edmonton would cool down.” said Michael Thompson, President and CEO of the REALTORS® Association of Edmonton. “While sales dropped in most areas, we continue to see growth in multi-family buildings and commercial land, most of which can be attributed to the strength within the suburban markets.”
While multi-family building transactions remained stable at 33, overall sales volumes jumped 45% to $271 million, compared to $187 million and $188 million for mid-year 2014 and 2013 respectively. This surge in commercial multi-family sales comes while housing starts in the market remained very strong during the first half of 2015 and single family residential values held steady.
At $131 million, the value of urban development land sales dropped 47.3% compared to the same time last year. The total value of all land sub-sectors (industrial, commercial, multi-family, urban development and institutional) was $310 million, down more than $134 million compared to mid-year 2014. The only subsectors to see an increase in values compared to mid-year 2014 were commercial condos, commercial land, and multi-family buildings, which combined recorded sales of $361 million, an increase of 43.5%.
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