Beginning 2022 with the two-year anniversary since the onset of the COVID-19 pandemic, we are finally starting to see the Edmonton office market stabilize. Q1 2022 witnessed a slight increase in the overall vacancy rate from 19.5% in Q4 to 19.6% this quarter. While the overall market did continue to report negative absorption of -28,013 square feet, it is far less drastic when compared to the first quarter of 2021, which reported a significant negative absorption of -204,000 square feet. This can be largely attributed to less downsizing occurring, and less sublease space being added to the market, as the Province of Alberta dropped most of its pandemic response measures.
Although it will not be recognized until 2025, it is worth noting the Canadian Western Bank announcement of a brand-new tower in the ICE District. CWB will be the anchor tenant of the tenant-named building, where it is estimated they will be occupying 200,000 square feet. Upon completion, they will be vacating approximately 150,000 square feet from the currently named Canadian Western Bank Place.