Edmonton office absorption is at its highest point in five years, according to a new Avison Young report.

The Alberta capital recorded positive absorption of 234,000 square feet in the fourth quarter of 2023, the market’s best showing since 2018, said the company in its Edmonton quarterly office report. Office absorption exceeded 100,000 sf for the second straight quarter.

Meanwhile, downtown office vacancy declined 50 basis points quarter-over-quarter to 19.9% from 20.4%. Properties adjacent to the ICE district experienced a transaction surge, highlighting a shift in the area’s real estate dynamics, Avison Young said.

Suburban office vacancy averaged 17%. Overall office vacancy dropped 40 bps to 19% from 18.6%.

Trophy-class office vacancy declined noticeably, falling 4.1% year-over-year to 5.5% in the fourth quarter of 2023.

“This performance underscores the market’s promising trajectory, emphasizing its stability and ascending momentum,” said Avison Young in the report.

The downtown market is being bolstered by economic and demographic shifts..

“Projected population growth, student influx, and improved transit connectivity are laying a solid foundation for the future,” said Avison Young.