Q1 2019 / Office Report Market

14.5% 13.3% 16.3% 10,784 Quick Stats Total Office Downton Office Suburban Office Market Vacancy Market Vacancy Market Vacancy Q1 Absorption (SF)

The conclusion of 2018 saw some major projects increased 0.4% and totaled nearly 62,000 sf of come to fruition in the downtown core. The negative absorption in the first quarter of 2019. completion of consumed the 2019 Edmonton’s suburban office market experienced a highlights of the pivotal transformation of Private sector optimism took an Edmonton's core. The increase in quality of flurry of activity to conclude 2018 and maintained upward turn following the April momentum into the first quarter of 2019. Vacancy provincial election results. The available space downtown has been a driving overall vacancy rate for the city is factor in the overall revitalization of downtown statistics continue to trend downwards for the unchanged to start the new year. and has created a hub for the city to emphasize second consecutive quarter, with over 72,000 sf its mantra: live, work, play. Downtown vacancy of positive absorption in the first quarter of 2019.

Vacancy Heat Maps | Edmonton Districts

Available Space < 50,000 sf 30 50,001 - 100,000 sf 25 104 AVENUE 23 > 100,001 sf 49 35 2 11 41 53 34

21 45 32 51 43 13 36 37 19 28 29 18 104 STREET 10 20 24 15 103 STREET 3 17 4 44 54 12 39 47 9 1

33 101 STREET 50 40 27 16 14 46 31 6 8 55 52 22 26

42 Financial 7 1 100 Street Place 8 ATB Place North 15 CWB Place 22 CKUA Bldg 29 36 43 Oxford Tower 50 Sun Life Place 2 104 Street Bldg 9 ATCO Centre 16 CDI Bldg 23 CN Tower 30 EPCOR Tower 37 McKenney Bldg 44 Phipps McKinnon 51 TD Tower 3 10405 Jasper Avenue 10 Beaver House 17 Cecil Place 24 Commerce Place 31 First & Jasper 38 McLeod Tower 45 Revillon Bldg 52 House at ATB Place 4 102nd Street Centre 11 Bell Tower 18 Centre Point Place 25 Edmonton Tower 32 HSBC Place 39 Melton Bldg 46 Royal Bank Bldg 53 The Annex 5 10336 Jasper Avenue 12 Birks Bldg 19 Century Place 26 Edmonton Journal Bldg 33 Jaffer Bldg 40 Milner Bldg 47 54 Wentworth Bldg 6 9Triple8 Jasper 13 Boardwalk Bldg 20 Chancery Hall 27 Empire Bldg 34 John E. Brownlee Bldg 41 MNP Tower 48 Scotia Tower 3 55 World Trade Centre 7 ATB Place East 14 Canada Place 21 City Hall 28 Enbridge Place 35 Manhattan Bldg 42 Oliver Bldg 49 Stantec Tower

Partnership. Performance. avisonyoung.com Edmonton Q1 2019 / Office Report

Vacancy Heat Maps | Edmonton Districts

9 Available Space 23 2 52 < 50,000 sf 104 AVENUE 10 6 50,001 - 100,000 sf 24 > 100,001 sf 50 106 STREET 12 25 33 46 112 STREET 11 8 37 32 38 3 14 26 30 42 15 48 19 7 53 1 29 22 16 JASPER AVENUE 17 49 43 45 44 31 20 21 41 4 47 51 5 27 34 99 AVENUE

109 STREET 39 Government 13 18 40 1 44 Capital Blvd 13 Allard House 25 Energy Square 36 Legislative Annex 47 Schwab Law Bldg 2 105 Street Bldg 14 Attia Reeves Bldg 26 First Edmonton Place 37 Lilac Bldg 48 Stantec Centre 28 3 106 Street Bldg 15 Baker Centre 27 Forestry Bldg 38 Maclean Block 49 Sterling Place 4 108 Street Bldg 16 Blue Cross Bldg 28 Haultain Bldg 39 Oxbridge Place 50 Sylbert Place 36 5 9925 Bldg 17 Blue Cross Place 29 Highfield Place 40 Park Plaza 51 WCB Bldg 97 AVENUE 6 10010 - 105 Street 18 Bowker Bldg 30 Intact Bldg 41 Parliament Bldg 52 Western Supplies 7 10018 - 106 Street 19 Capital Health Centre 31 Jarvis Bldg 42 Peace Hills Insurance Bldg 53 WSP Place 8 10232 - 112 Street 20 Commonwealth Bldg 32 Jasper 105 43 Peace Hills Trust Tower 9 10257 - 105 Street 21 Compass Place 33 Jasper Block 44 Petroleum Plaza 10 10304 - 108 Street 22 Devonian Bldg 34 Labour Bldg 45 Petwin Tower 35 11 Block 23 Dorchester Bldg 35 Ledgeview Business Centre 46 Romanovsky Bldg 12 Allard Bldg 24 East Court Bldg

118th Ave & Kingsway / 124th Street / Whyte Avenue West End / 149 Street 1 HYS Centre 7 Edmonton Brewery 11 Strathcona Professional Centre 10 2 Vibe Professional Centre District - Bldg 11 12 1 Centre 170 9 Bonaventure Gate 9 3 Princeton Place 8 Plaza 82 13 10507 Saskatchewan Drive 2 Nerval on 118th Avenue 10 Trail Business Centre 4 Guardian Bldg 9 Raymond Block 1 3 Mayfield Square 1 11 Nexus Business Park 5 Plaza 124 10 Garneau Professional Centre 4 CX Place 12 149 St. Business Park - A 6 Westcor Bldg Numbered (#1) most vacant to least vacant 5 West Link Office Park 13 High Park Corner Buildings with < 10,000 sf availability not shown 6 Mayfield Business Centre 14 Coronation Plaza 7 Walfam Centre 15 Klondike Centre 2 8 Badenia Bldgs East 16 ParkWest Business Park 5 YELLOWHEAD TRAIL Numbered (#1) most vacant to least vacant 6 7 Buildings with < 10,000 sf availability not shown 16 3 104 AVENUE 4 12 5 2 4 11 170 STREET 149 STREET

8

14 15 13

5 12 13 6

Available Space 8 3 Available Space 10,000 - 50,000 sf 10 9 1 10,000 - 50,000 sf 82 AVENUE 50,001 - 100,000 sf 11 7 50,001 - 100,000 sf

Partnership. Performance. avisonyoung.com Edmonton Q1 2019 / Office Report

Available Space 10,000 - 50,000 sf Numbered (#1) most vacant to least vacant Vacancy Heat Maps | Edmonton Districts 50,001 - 100,000 sf Buildings with < 10,000 sf availability not shown

6 101 AVENUE YELLOWHEAD TRAIL Eastgate Sherwood Park 1 Broadmoor Place VI 1 Plaza 50 2 2134 Premier Way 5 2 Edmonton Sun Bldg 4 3 Broadmoor Place I 3 Eastgate Bldg 7 BROADMOOR BLVD. 4 Millennium Professional Bldg 3 9 4 50th Street Atria 3 5 Emerald Hills 5 Meridian Place 6 Broadmoor Place IV 8 6 6 Capilano Centre 2 7 Broadmoor Place VII 7 Parkwood Office Centre 9363 8 Broadmoor Place II 2 50 STREET 9 Broadmoor Place III 10 10 2112 Premier Way 1 7 4 1 SHERWOOD PARK FWY 5

Southside 17 1 Prospect Business Park 12 Whitemud Business Park 2 2 Terrace Plaza 13 Whitemud Business Park 3 3 Argyll Centre 14 Ninety Nine Ten 4 Weber Centre 15 Greystone Business Park IV 5 Letourneau Centre 16 Greystone Business Park VI 3 6 Centre 104 17 Regency Plaza Medical/ 63 AVENUE 7 Richfield Bldg Professional 11 8 Tawa Centre 18 Whitemud Square Bldg One 9 Point 51 19 Sprucewoods Business Park 10 Elm Business Park Bldg 2 4 11 Allendale Centre East 6 10 9 1 19 5 WHITEMUD DRIVE 2 18 15/16 12\13 91 STREET GATEWAY BLVD. 14

7 8

E GATEWAY BLVD. 1 RIV Y D DA 7 EN NY H 4 ANTHO

ELLERSLIE ROAD 6 3 5 2

Windermere / Summerside 1 SCM Building 4 Ellwood Office Park Phase II 2 The Steppes East Campus 5 Landmark Business Centre 3 Gateway Business Park 6 Village at Blackmud Creek: Phase 2 7 Windermere Health & Business Centre Numbered (#1) most vacant to least vacant Partnership. Performance. avisonyoung.com Edmonton Q1 2019/ Office Report

Total Direct Sublease Absorption Vacancy Vacancy Vacancy Additional Rent* Average* Buildings Inventory Vacancy Vacancy (YTD) Rate Direct Sublease (Op. Costs & Property Tax) Asking Rates Financial AAA** 4 2,345,524 209,253 0 3,053 8.9% (0.2%) 8.9% (0.2%) - - - $22.00 $34.50 A 23 7,342,839 873,591 277,170 (90,591) 15.7% 1.3% 11.9% 0.8% 3.8% 0.4% $18.25 $20.25 B 16 1,988,921 162,618 5,493 (1,324) 8.5% 0.1% 8.2% (0.1%) 0.3% 0.3% $13.50 $16.00 C 16 1,078,675 57,041 0 14,546 5.3% (1.3%) 5.3% (1.3%) - - - $8.00 $15.75

SUBTOTAL : 59 12,755,959 1,302,503 282,663 (74,316) 12.4% 0.6% 10.2% 0.3% 2.2% 0.3% $17.25 $22.00

Government A 15 2,706,416 210,285 348,405 30,355 20.6% (1.2%) 7.8% (1.1%) 12.9% - - $16.00 $17.50 B 16 1,622,278 256,050 0 (17,672) 15.8% 1.1% 15.8% 1.1% - - - $10.50 $15.25 C 22 1,132,645 18,571 0 (343) 1.6% - - 1.6% - - - - - $8.25 $14.00 SUBTOTAL : 53 5,461,339 484,906 348,405 12,340 15.3% (0.2%) 8.9% (0.2%) 6.4% - - $12.75 $16.00

Suburban 118 Ave & Kingsway 22 817,033 112,972 5,073 11,111 14.4% - - 13.8% (0.6%) 0.6% 0.6% $11.25 $16.50 124 Street 27 1,030,896 107,512 9,620 16,950 11.4% (1.6%) 10.4% (1.7%) 1.0% - - $13.75 $16.00 149 Street 35 1,259,031 197,831 3,482 (12,955) 15.2% 1.1% 14.9% 1.0% 0.3% - - $11.00 $14.25 Eastgate 18 1,375,954 211,995 146,601 20,621 26.1% (1.5%) 15.4% (0.9%) 10.7% (0.5%) $12.25 $14.75 Southside 81 3,613,977 625,547 53,152 35,891 18.8% (1.0%) 17.3% (1.0%) 1.5% 0.1% $11.25 $16.50 Summerside 29 979,511 131,795 3,546 9,396 13.8% (1.0%) 13.5% (1.3%) 0.3% 0.3% $9.00 $19.00 Windermere 12 348,042 24,709 0 2,472 7.1% (0.7%) 7.1% (0.7%) - - - $6.50 $20.00 West End 46 2,189,102 149,291 2,167 (9,410) 6.9% 0.4% 6.8% 0.4% 0.1% - - $9.75 $15.75 Whyte Avenue 17 659,009 137,910 0 14,948 20.9% (2.3%) 20.9% (2.3%) - - - $16.50 $19.00 Sherwood Park 32 1,309,724 294,315 0 (16,264) 22.5% 1.3% 22.5% 1.3% - - - $6.75 $15.75 SUBTOTAL: 319 13,582,279 1,993,877 233,641 72,760 16.3% (0.4%) 14.7% (0.4%) 1.6% - - $11.00 $16.25

Totals Downtown Total: 112 18,217,298 1,787,409 631,068 (61,976) 13.3% 0.4% 9.8% 0.1% 3.5% 0.2% $16.00 $20.25 Suburban Total: 319 13,582,279 1,993,877 223,641 72,760 16.3% (0.4%) 14.7% (0.4%) 1.6% - - $11.00 $16.25 Overall: 431 31,799,577 3,781,286 854,709 10,784 14.5% - - 11.9% (0.1%) 2.7% 0.1% $13.75 $18.50 **AAA Class office buildings include Stantec Tower, Edmonton Tower, EPCOR Tower and Enbridge Centre * Weighted average based on current availabilities.

Cory Wosnack Mark Hartum Peter Schwann Karnie Vertz Principal, Managing Director B.Comm, SIOR, Principal B.Comm, Principal LEED GA, Principal 780.429.7556 780.429.7557 780.429.7563 780.429.7551 [email protected] [email protected] [email protected] [email protected]

Jason Gardner Hillary Smith Tori Sara Cailey Martiniuk B.Comm, Senior Associate B.Comm, Associate Administrative Coordinator Executive & Sales Assistant 780.429.7569 780.429.7564 780.429.7561 780.429.7572 [email protected] [email protected] [email protected] [email protected]

Jennifer Poisson Chantel Ganz Luciana Gomez Mackenzie York Administrative Coordinator B.Comm, Sales Assistant - Licensed Executive Assistant BSc, Research Manager 780.702.0699 780.429.7553 780.429.7572 780.429.7555 [email protected] [email protected] [email protected] [email protected]

Charlotte Phillips Cori Vertz Graphic Designer Marketing / Graphic Designer 780.429.7574 780.428.7850 [email protected] [email protected]

Avison Young, Edmonton 2800 Bell Tower avisonyoung.com 10104 - 103 Avenue Edmonton, AB T5J 0H8 @AYEDMONTON

© 2019 Avison Young Real Estate Alberta Inc. All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.