Edmonton is seeing a return to pre-pandemic office vacancy rates, partly due to the increasing trend of converting offices into residential spaces, a recent report reveals. According to CBRE, Edmonton’s office vacancy rate remained at 19 per cent in the final quarter of 2025, following a slight decrease earlier in the year.
Mark Anderson, managing director at CBRE in Edmonton, expressed optimism about the findings, highlighting the city’s reputation for stable growth rather than volatile cycles.
The national vacancy rate for the fourth quarter was reported at 18 per cent, down from 18.7 per cent the previous year. Factors contributing to this decline include companies requiring employees to return to the office, limited new office developments, and the repurposing of existing office buildings for alternative uses.
Comparatively, Calgary, with one of the country’s highest vacancy rates at 25.9 per cent, has witnessed numerous office conversion projects into hotel, life sciences, and educational facilities.
Anderson noted that the ideal office vacancy rate for most cities should range between seven to nine per cent to ensure a balanced negotiation environment between landlords and tenants.
In Edmonton, the downtown office vacancy rate stands at 20.9 per cent, while suburban areas maintain a steady rate of 15.9 per cent. The concentration of major corporations headquartered downtown influences this disparity.
The conversion of downtown office spaces into residential units has contributed to a reduction in office supply, prompting some large companies to consider relocating to suburban areas for office space.
Despite this trend, the Downtown Business Association in Edmonton advocates for more residential conversion projects in the city center to enhance vibrancy, attract more foot traffic, and stimulate the local economy.
With the provincial government workers expected to return to the office full-time in February, analysts anticipate a prosperous year ahead for Edmonton’s office market. The influx of people downtown is likely to spur business opportunities and revitalize the city’s core.
