Canada’s northernmost major city was found to be the country's only large market where commercial real estate investment sales increased in 2025.
Edmonton hit a record $3.3 billion in total volume, according to the Canadian Commercial Real Estate Outlook 2026 report from JLL. "This was driven by a red-hot multifamily sector that contributed about $1.5 billion in capital flows."
The report defines real estate investment as the total dollar value of commercial properties that sold for more than $5 million, including office, industrial, multifamily, retail, hotel, and land assets. Under that definition, Edmonton’s approximately $1.5 billion in multifamily trades had an outsized impact.
Overall, 2025 commercial property investment sales in Canada totalled $46.2 billion, down 5% from 2024 and 29% below the 2022 peak, according to JLL.
Toronto remained the largest market in overall investment sales volume — at roughly $14 billion — but that amount marked its lowest total since 2020. Vancouver slipped below its five‑year average, Montreal barely held its position, and Calgary did not register the same lift despite strong economic fundamentals.
Edmonton's commercial property market benefited from population growth, which helped fuel demand for office space, retail shops and services, and warehouses. With a lower cost of living, the metropolitan area continued to draw people from across the country.
Alberta has led Canada in interprovincial migration for three straight years, and a large share of that movement came from residents leaving high-cost areas in Ontario for more affordable markets. Calgary absorbed much of that inflow, but Edmonton attracted the higher investment activity.
Job growth propels activity
CoStar data aligns with the JLL findings and reinforces the underlying strength of Edmonton’s investment sales market. The metropolitan area added nearly 11% to its population over the past three years, even as the average apartment vacancy rate climbed to 6.6%, reflecting extended lease-up periods for a large amount of new supply.
Condo values remain anchored near the $200,000 range, and the gap between renting and owning has narrowed to just over $120 per month. CoStar analyst Paul Richter said this dynamic “creates an opportunity for renters to become homeowners,” although he noted that employment concerns and limited price appreciation continue to restrain home ownership demand.
Edmonton's average asking rents of approximately $1,540 per month remain among the lowest of any major Canadian metropolitan area, according to CoStar data, and population growth of roughly 4% annually continues to support long‑term rental demand.
JLL identified Edmonton as the strongest job‑growth market in Canada, supported by steady in-migration and a diversifying economy.
Some of the biggest sales in 2025 included BGO's $198 million acquisition in December of the 272‑unit Eleanor tower and the 175‑unit Laurent Student Housing complex, a two‑building portfolio. The fully leased, recently delivered high‑rise assets traded for more than $440,000 per unit, reflecting sustained demand for institutional‑grade multifamily product near the University of Alberta.
Another notable deal was Josan Properties’ purchase of the 233,000‑square‑foot Intact Insurance Building for $24 million, a value‑add office acquisition completed amid continued pricing recalibration in Edmonton’s city core, according to CoStar data.
The office building, which was 72% occupied at the time of sale, was Josan's second downtown acquisition in two years. The building is reportedly slated for a partial residential conversion.