Edmonton’s office market recorded a third consecutive quarter of positive absorption in the fourth quarter of 2025, signalling continued stabilization, says Avison Young.

According to firm’s latest local office report, the market posted 65,517 square feet of positive absorption during the fourth quarter of quarter, while overall vacancy declined 20 basis points to 15.4%.

Avison Young said improving sentiment is being supported by sustained leasing momentum, stronger downtown office utilization and renewed investment activity. Recent transactions, including the sale of the Intact Building, point to growing investor interest in quality office assets at adjusted pricing, according to the commercial real estate advisory firm. A gradual return of downtown office workers has also contributed to more consistent leasing activity, reinforcing confidence that market conditions are stabilizing.

In the suburbs, a year of steady leasing has tightened the availability of large, contiguous class A office space. Blocks of 10,000 sf or more are increasingly scarce, particularly in newer submarkets such as Windermere and Summerside, where vacancy rates sit at 4.1% and 3.6%, respectively. The report notes that while suburban development typically requires significant preleasing, sustained demand could support early commitments for well-located class A projects.

Downtown vacancy stood at 17.6% in the fourth quarter of 2025, down 50 bps from the previous quarter, while suburban vacancy held steady at 13%.

Pictured: Josan Properties‘ mixed-use office tower in downtown Edmonton.

Photo: Courtesy of Josan Properties