When people think of Edmonton, the river valley or the Oilers often come to mind. But what’s frequently overlooked is the strength and impact of our industrial and non-residential sectors. These often-unsung contributors are quietly laying the groundwork for continued growth and investment across the region. At BILD Edmonton Metro’s June luncheon, a panel of speakers challenged us to broaden our perspective on Edmonton’s future — not just by looking at what’s happening in the city proper, but by recognizing the powerful momentum building beyond it.
Matt Woolsey, President at York Realty, kicked off the discussion by stating that the region’s growth is largely due to the opportunities we have at our fingertips. “There are lots of ways for us to execute projects, especially outside of the city.” Whether through competitive taxation or affordable housing, it all comes down to the clients. “We have to ask, ‘Where do the people want to be, and where do they get their services?’ in order to know that what we’re creating will work,” he added.
Many Challenges, Many Opportunities
When it comes to moving forward and continuing to fuel the growth, communication, collaboration, and connection are key. “It’s a top-down model,” said Dave Young, Executive Vice President at CBRE. “The public and private sector might be at the same table, but we’re not always singing from the same song book. We need to get on the same page.”
Another challenge that the City faces is that most of the development is not happening in the city limits, shared Kris Auguston, Senior Vice President of Leasing and Land Sales at Remington Development Corporation. “This is largely due to the fact that within the city, the tax rate is twice as high,” said Woolsey.
However, to industrial developers like Young, Woolsey, and Augustson, these challenges can also pose opportunities. “We need to act on these openings and utilize the space outside of city limits to continue developing and adding economic growth and jobs to the region,” Augustson said.
Standing Out
One of the main topics of discussion posed a question that everyone in the room was wondering: On an international stage, how can Edmonton stand out as a top destination for investment and business development? “We’re big fish in a small market, and that market needs to be understood,” said Woolsey.
Remaining competitive is at the base of this. “It’s a major risk to be respected,” he said. “We’re a cog in the chain because we supply the space for tenants, who then supply the jobs. So, we have to ensure that the City focuses on its core lines of business, and we have to address policy, processes, and timelines,” he added. “We cannot artificially delay development. We have to address availability of land, and provide competitive taxation models.”
When we think about the city vision, “some say that’s old news,” said Woolsey. “But really, that’s the only news. We need to care about where the city is going as an entity.” With a slowdown on the leasing world, we must stop and take a moment to consider the bigger picture. We have to ensure that Edmonton’s land development policies are conducive to long-term, sustainable economic growth, and that we’re open to changing with the market, and not against it, he shared.
The consensus among the speakers, audience, and local leaders was that Edmonton’s industrial market is at a critical juncture. Augustson emphasized that now is the time to be acting, and that the current status quo isn’t sustainable. “We can’t keep the status quo forever, we have to make decisions,” he said. “We’ve seen tremendous demand from the private sector, and it’s a very Edmonton industrial market right now. It’s never good or bad, it’s just a lot of hard work and grinding.” Unlike other sectors that may experience dramatic booms or busts, industrial development in Edmonton tends to evolve steadily, reliably, and competitively. “There’s no extreme highs or lows; just consistent momentum,” said Young. “That’s what makes our market desirable from an investment point of view.”
The Importance of Industrial Development
Industrial development is essential to Edmonton’s identity and long-term economic health. Young noted that we’re not a white or blue collar city, but instead, a grey collar city. “We should be proud of the fact that we’re the industrial heartland,” he said. “”Edmonton is a city that’s built on industry and getting things done.” And, the industrial market does more than just contribute new projects to help drive Edmonton as a whole; it’s also the largest contributor to the non-residential tax base. The implication is clear — industrial development is not just important, it’s foundational to the city’s growth and financial stability.
When asked where they would invest $10 million, Woolsey was quick to recommend the outskirts of the city. “One hundred per cent I would choose invest it into the counties for investment. Parkland and Leduc are very aggressive on the industrial side.”
For larger investments, Augustson suggested focusing on redevelopment opportunities in business-friendly jurisdictions, whereas Dave suggested waiting to hold off on investment. “I’d really pay attention to the next civic election where I think we will see some change. In the meantime, capital should be focused on industrial properties with good cashflow and near term rental growth.” The future of policy and leadership will play a key role in shaping where and how development occurs.
Remaining Competitive in a Changing Market
Maintaining and enhancing competitiveness was a recurring theme throughout the luncheon. Augustson underscored the need to support the local business ecosystem, while Woolsey and Young agreed on the importance of focusing on practical support and meaningful conversations with business owners, rather than chasing overly ambitious or “sexy” projects.
Keeping the labour pool strong, and within the Edmonton region, is essential for sustainability. When it comes to industrial development, we have to consider the many residents, workers, and businesses that each project will impact. “It’s important that we focus on local business more than ever,” said Augustson. “They’re a crucial part of the region, and we can’t forget about what’s running our city.”
Thank you to the luncheon sponsors: FortisAlberta, S3 Precast, Primary Engineering and Construction, and Hi Signs.
Written by Payton Phillips