When you think about commercial real estate Edmonton, you may think about large buildings and huge investment amounts. However, one of the more recent trends in Edmonton commercial real estate has to do with integration of commercial, retail and residential into developments designed for mixed use. Given the trend toward innovation in the modern economy, this type of development is becoming more and more common. Making companies closer to where people live and to where people shop means that the potential for synergy in terms of ideas is greater as well. The end result is a series of connected communities in Edmonton and the inner-ring suburbs that drive collaboration and invention. It is this sort of creativity that modern cities need as the West continues to fight its way out of the global recession that shook the economy in 2008 and 2009.
Over the course of time, different notions of spatial design have held sway. The most innovative forms of development today are putting together a planned geography that involves mixed use projects, so that people who live and work there have a sense of living, working and playing throughout their days, while also maintaining a notion of place. Instead of creating a more sterile environment in which people develop a Stepford sort of lifestyle, modern commercial real estate development in Edmonton has to do with mixed use developments.
One of the most well known mixed use developments in the Edmonton area is the West Edmonton Mall. Triple Five (555) was the entity that developed it and continues to own and operate it. The mall has about 24,000 employees and full integrates entertainment, tourism and retail. It occupies more than 5.3 million square feet, and while it is zoned as a shopping centre, it has accreditation as a zoo. It has nine attractions, a hotel, 100 dining options — all in all, more than 800 shops and services. More than 30 million people come through the mall every year; it is Alberta’s top tourist draw. It serves as a tremendous example of how a mixed use commercial real estate idea can use synergy among its parts to become a gold mine for investors.
Even if you’re not quite ready to purchase a mall, there are many other types of commercial real estate investment opportunities in Edmonton. The office market is robust, as several different segments have a strong presence downtown. Alberta and the Canadian government have a heavy lease presence. Many major financial institutions in the region comprise a sizable presence in the city, and there is a strong engineering presence as well.
Between 2004 and the present day, the Edmonton retail sector has grown considerably. Several large chains in Canada continue to expand their existing operations, and American retailers are establishing a presence north of the border. This expansion is one reason why Edmonton is generally #1 in Canada for per capita square footage when it comes to retail shopping space.
One difference between Edmonton and some other cities in Canada is that there is plenty of land available for industrial operations. This means that companies in the areas of transportation, warehouse, oilfield service and distribution are expanding their operations in the Edmonton area.
So where would you fit in the commercial real estate spectrum in Alberta? Private investors tend to enter the market in retail, multi-residential and industrial sectors. Institutional investors tend to dominate in the office sector, although they will invest in the others as well.
One property currently for sale is the High Park Industrial Property, at the corner of 153rd Street and 114th Avenue in Edmonton (T5M1X6). Still under construction, this will have a clear ceiling height of 23 feet and a total of 13,000 square feet under one roof. Listing at $3,000,000, this warehouse will feature flexible options for design and yard storage to make it a convenient opportunity. There are not many industrial-zoned properties for sale in West Edmonton, and this facility has access to most of the major roads in West Edmonton.
If you are looking for an investment opportunity in commercial real estate in Edmonton, Amansad Financial can connect you with the ideal realtors in the city, as well as with other potential investors with whom you could form partnerships to purchase larger properties. Give us a call to see if we can assist or point you in the right direction.