Edmonton Investment Transaction Stats – Q1 2018
Edmonton Retail Property Transactions Hit a Five Year Peak
The first quarter of 2018 registered 211 transactions in excess of $500K for a total investment value of $814 million
Edmonton ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the Edmonton market area’s real estate investment results for Q1 2018. In total, 211 transactions over $500,000 were captured, worth approximately $814 million, a 6% decrease from the investment total of Q1 of the previous year while transaction counts increased by 26% from Q1 2017.
Source: Altus Group
Total investment in the quarter ($814 million) is the second highest investment total since 2014, behind Q1 2017 ($865 million). The top three contributors to overall investment levels were ICI land (27%), retail (25%), and industrial (24%). Local private investors were the most active purchasers of these properties.
A total of $204 million in retail investment was recorded in Q1 2018, the most since Q1 2013. The top transaction was Westland Market Mall; a 130,193 square foot property, acquired by Cristall Group for over $35 million. The bulk of activity in the quarter is attributed to 10 transactions ranging from 20,000 to 50,000 square feet each, totalling $124,970,000.
The industrial sector recorded 50 transactions for $198 million. Overall investment was up 145% from the previous year. Notable transactions in Q1 include two purchases by York Realty: 9703 28th Avenue N.W. for $25 million and 18131 118th Avenue NW for $13.3 million. The Edmonton portion of a $61 million, Edmonton/Calgary industrial portfolio, bought by Fiera Properties, also traded in Q1 2018.
Values in the Edmonton region have remained relatively stable since the first quarter of 2017. The Altus Group Investment Trends Survey indicated that cap rates in Edmonton were flat for most assets, with some compression due to the transaction of some quality assets, through Q1 2018.
68 ICI land transactions were recorded in Q1, totalling $220 million, an increase of 32% from Q1 2017. Year-over-year residential land transactions were flat however when looking at the combined value of land sales over the past three years, overall land sales are at their highest point since Q1 of 2015.
“The Edmonton commercial real estate market has gotten off to a strong start in Q1 with the industrial and retail sectors leading the built asset classes. The upswing in land transactions also bodes well for the market as investors look toward the future and the development of product in both the downtown and suburban markets,” noted Paul Richter, Director, Data Solutions at Altus Group.
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.
For more information on Data Solutions, please visit www.altusgroup.com/datasolutions.
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 insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,500 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 shares are traded on the TSX under the symbol AIF.
For more information on Altus Group, please visit: www.altusgroup.com.
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