Lethbridge could see an increase in new developments in 2024, according to Avison Young. Last year saw a slowdown in investment in the city driven by challenging economic conditions and a cautious market, but the latest Lethbridge Investment Market Report predicts a change.
“Buyers remain in our market and the sales activity is there to prove it, although the mood around how and what to purchase may have changed,” said Doug Mereska, managing director in Avison Young’s Lethbridge office. “Investor sentiment plays such an impactful role in property transactions that, by accepting the market’s ‘new normal,’ we will see projects regain momentum in 2024.”
The report notes multifamily housing is in demand, which is likely to drive new development from investors.
“We have seen heightened activity in land sales through the end of 2023,” said Jeremy Roden, executive vice president in Avison Young’s Lethbridge office. “These investment developments are well positioned for future growth where they may transact to owner-users or be retained as built-to-suit revenue-generating properties with long-term or national tenants.”
Rents for industrial and office real estate are predicted to go up as demand catches up, after little activity in new builds in 2023. The report predicts retail real estate will come with longer lease terms and more national tenants moving to small markets.
It also notes office vacancy is on the decline in Lethbridge.