3 Year High for Retail Sector Helps Boosts Edmonton Property Investment

2016 registered a total of 678 investment property transactions in excess of $500k, for a total investment value of $2.3 billion

EDMONTON ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the cumulative results for the Edmonton area commercial real estate investment market for 2016. In 2016, Edmonton had 678 transactions totalling $2.3 billion, which represents a 12% increase from the values seen in the previous year.

Graph showing Edmonton property transaction dollar volume and number of transactions for all sectors by quarter from Q1 2013 to Q4 2016.

Source:  Altus Group (Q4 2016)

The dollar volume of investment picked up steam as the year unfolded, finishing off with an 81% year-over-year increase in the fourth quarter. The industrial sector accounted for 38.7% of the $669 million invested in the fourth quarter, followed by the retail sector at 21.4%.

Three asset classes saw their total transaction value increase in 2016. The Retail sector had its best year since 2013, with 101 transactions worth a total of $524 million (a 172% increase). The Residential Land sector recorded 60 transactions worth a total of $272 million, up 78% from 2015. The Industrial market recorded 142 transactions worth a total of $607 million, a 47% increase over the 2015 total.

The $143 million investment in the Office sector virtually matched 2015, despite a 50% increase in the number of deals.

A year-over-year decrease was posted in the Apartment sector, with 61 transactions worth $336 million (down 12% compared to 2015). The ICI Land sector saw a 36% decrease to $460 million.

Pie chart showing Edmonton Q4 2016 Property Transactions, total dollar volume by sector.

“Together, the Industrial and Retail sectors accounted for more than half the investment dollar volumes in the Edmonton market; several larger transactions in these sectors confirms there is investor appetite for quality assets in key submarkets,” noted Paul Richter, Director, Data Solutions, Altus Group.

 

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ABOUT DATA SOLUTIONS

Data Solutions connects the Canadian real estate industry through the delivery of data with unparalleled breadth, integrity and relevance.  We cover new homes, investment transactions and commercial market inventory in key markets, and also provide intelligence on the national housing market and consumer home buying and borrowing patterns.

Our solutions are used by real estate industry stakeholders to gain market intelligence, identify and validate opportunities, benchmark, strategically plan, manage risk and more.

Data Solutions is part of Altus Analytics, the software and data solutions business of Altus Group, where our focus is to empower real estate clients and partners to work collaboratively to enhance decision making, drive performance and optimize transactional efficiency. Our solutions enable firms to better organize and manage data and connect with the right information and analytics to help them gain a complete picture of real estate assets, portfolios and transactions.

ABOUT ALTUS GROUP LIMITED

Altus Group Limited is a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our securities are traded on the TSX under the symbols AIF and AIF.DB.A.

For more information on Altus Group, please visit: www.altusgroup.com.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Elizabeth Lambe
Manager, Communications
Altus Group
(416) 641 – 9787
elizabeth.lambe@altusgroup.com

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