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As we know, COVID-19 pandemic impacted all verticals. However, one of the most substantial impacts it made is perhaps that in the industrial warehouse sector. Supply has been leased and bought up but there is still a strong demand for more space. Fear and worry seems to be driving that demand as business owners are worried that future events involving the pandemic might disrupt their supply lines. When fear of lack of supply is a factor, the demand for more industrial warehouse space increases.


Supply Line Fears Increases Demand for Warehouse Space

Fear surrounding the pandemic had a positive effect on industrial real estate. Business owners fear of supply line disruptions leads them to stocking more inventory. 

In addition to storing more inventory in warehouse space, several big retailers in the ecommerce industry also decided to open more distribution centers. Amazon being the first to open a new distribution center in the Edmonton area. 

When a big fulfillment warehouse or distribution center opens in an area, it creates strong demand for warehousing. The suppliers want to minimize their costs and try to locate a warehouse as close as possible to the center. Both of these shifts in retail business has had an impact on CRE in Edmonton.


Warehouse demand in 2021 is higher than pre-COVID levels

When it comes to warehousing space in Edmonton, suppliers do not need to be concerned. While vacant offices won’t be converted into warehouses, developers are working on building new ones. Increased demand for warehousing has created a lot of work for developers in Edmonton, and they are working hard to meet the demand in time—which is very likely to happen without any issues. 

Grant Ranslam, the principal – industrial at AY’s Edmonton office, claims that even though the pandemic had created many uncertainties and had stopped many businesses across industries, we can now see the demand bouncing back to normal. He also claims that the current demand surpassed the pre-COVID levels and that the current situation resembles the one from 2016, which was quite lucrative for Edmonton. 

“Most developers with land positions have put plans in motion and shovels in the ground to deliver new products as soon as possible,” the principal said. “Currently, there are 3.9 million square feet under construction, which is considered a pretty big number for Edmonton historically. Developers here are quick to react to market influences and will be able to meet increasing demand going forward.”



While the pandemic may have caused disruptions at the start in Edmonton, Alberta, huge warehouse demand continues to boost commercial real estate. The vacant offices in downtown, along with the 3.9 million square feet of warehousing space under construction, Edmonton offers attractive investment opportunities. Learn more about investment opportunities in the Edmonton area and see why so many are considering it.

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