It has been a very productive nine months in both the Edmonton Downtown and Suburban office markets, demonstrated by the 105,999 square feet of positive absorption this quarter. Vacancy rates are declining, and larger blocks of contiguous space are becoming scarce. With the Edmonton economy continuing strong, vacancy rates for the overall Edmonton market dropped 0.5% since second quarter and are currently at 7.2%. Colliers' leasing team predicts that absorption will remain high as companies expand or relocate with rates rising by the end of 2005.

The robust Edmonton economy will continue to put pressure on availability and new office construction is likely to begin in 2006 as several developers have suitable sites, once rates justify construction.

Look inside for a more in depth look at the state of Edmonton's office market and detailed submarket analysis.

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