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Edmonton, Alberta — Industrial Real Estate

SE Edmonton Industrial
34 Street & Parsons Road Corridor

Manufacturing, warehousing, auto-oriented, and light industrial flex in southeast Edmonton — direct Anthony Henday and QEII access to the Nisku/Leduc industrial market.

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5.75–7.25%Industrial Cap Rate
$10–15/sfNet Rent Range
~4.5%Edmonton Metro Vacancy
$27.26Mill Rate (Non-Res)
Property Types
Industrial & Flex — SE Edmonton
Industrial
General Manufacturing & Warehousing
$11–15/sf Net
Mid-bay and big-bay, 22–28 ft clear, dock and grade loading, IB/IM zoning. Distribution, fabrication, food processing.
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Industrial
Auto-Oriented & Service Industrial
$10–14/sf Net
Drive-through bays, service pits, spray booth capability. Auto dealers, body shops, parts suppliers, fleet maintenance along Parsons Road.
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Flex Industrial
Light Industrial Flex & Office/Warehouse
$10–13/sf Net
Small- to mid-bay flex, grade-loading, office buildout. Contractors, trades suppliers, light assembly, medical device distribution.
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Sub-Areas

SE Edmonton Industrial — Key Nodes

Parsons Road Corridor
Primary Industrial Arterial
The backbone of SE Edmonton's industrial market. Parsons Road runs north–south from inner-city 34 Street industrial south to Anthony Henday Drive, providing continuous industrial frontage with grade and dock loading. Attracts warehousing, distribution, building materials, and fleet operations.
Warehousing Distribution Building Materials
$11–15/sfNet Rent
6.0–6.75%Cap Rate
34 Street Industrial
Inner-City SE Industrial
The 34 Street corridor forms the western edge of SE Edmonton's industrial fringe, running south from Whyte Avenue toward the Anthony Henday interchange. Mixed IB and IM zoning supports auto-oriented retail, service industrial, and mid-bay manufacturing alongside established residential to the west.
Auto-Oriented Manufacturing Service Industrial
$10–14/sfNet Rent
6.25–7.25%Cap Rate
Anthony Henday SE Gateway
Ring Road Access Node
Where Parsons Road meets Anthony Henday Drive, newer industrial development has emerged to capture ring-road logistics demand. Buildings here typically offer 24–28 ft clear heights, ESFR sprinklers, and dock loading configured for modern logistics. QEII Highway south to Nisku/Leduc is a 15-minute drive.
Logistics Distribution Warehousing
$12–15/sfNet Rent
5.75–6.25%Cap Rate
Mill Woods Industrial Fringe
Light Industrial & Flex
The industrial fringe east of Mill Woods accommodates light manufacturing, trades contractors, and small-bay flex users serving the large residential catchment. Properties are typically 2,000–10,000 sf grade-load bays with office buildout. Low vacancy driven by demand from tradespeople and service businesses.
Flex Industrial Contractors Light Mfg
$10–13/sfNet Rent
6.75–7.25%Cap Rate
Ellerslie Road Industrial
Southside Industrial Node
Ellerslie Road (91 Ave SW) intersects Parsons Road at a major industrial node on the south fringe of the city. A mix of established manufacturing and newer medium-bay industrial development serves regional distribution. Proximity to Anthony Henday and growing south Edmonton residential supports service-industrial demand.
Manufacturing Warehousing Service Industrial
$11–14/sfNet Rent
6.0–7.0%Cap Rate
South Common & 66 Street SE
Auto-Oriented & Retail Industrial
The 66 Street SE corridor and South Common area blend auto-oriented industrial (dealerships, collision, fleet) with power centre retail pads. Industrial uses benefit from high-exposure arterial frontage. Large-format auto dealers anchor long-term NNN income. Industrial cap rates reflect higher site coverage and auto-use demand.
Auto Dealers Auto Service Fleet Ops
$11–15/sfNet Rent
6.25–7.0%Cap Rate
~4.5%
Edmonton Metro Industrial Vacancy 2025
5.75–7.25%
Industrial Cap Rate Range
$10–15/sf
Net Rent Range
15 min
To Nisku/Leduc via QEII

SE Edmonton Industrial Market Overview

SE Edmonton's industrial corridor is one of the city's most diverse mid-market industrial zones, stretching from the inner-city industrial fringe along 34 Street south through the Parsons Road corridor to the Anthony Henday Drive ring road. The area accommodates a wide spectrum of industrial uses — general manufacturing, warehousing, distribution, auto-oriented service, light industrial flex, building materials, and contractor operations.

The Parsons Road corridor is the defining spine of SE Edmonton industrial. Running nearly continuous from inner-city to ring-road, Parsons Road offers established industrial land with IB (Industrial Business) and IM (Industrial Medium) zoning, grade and dock loading, and direct Anthony Henday access at the south end. For logistics operators, the Parsons Road / Anthony Henday interchange delivers ring-road connectivity to all Edmonton quadrants plus QEII Highway south to Nisku/Leduc (Canada's most significant oilfield services industrial market) in approximately 15 minutes.

34 Street anchors the western edge of SE industrial, historically home to auto-oriented uses — dealerships, body shops, fleet maintenance — mixed with light manufacturing and service industrial. The 66 Street SE corridor has seen growing auto dealer and auto-oriented commercial concentration, with purpose-built NNN auto dealer properties among the most stable long-term income assets in the submarket.

SE Edmonton industrial vacancy tracks with the Edmonton metro average of approximately 4.5% in 2025, reflecting balanced conditions. Newer ring-road-adjacent space is tightest; older small-bay flex in the inner-city industrial fringe sees marginally higher availability but strong demand from trades contractors serving south Edmonton's large residential base.

SE Edmonton Industrial Cap Rate Table — 2025

Cap rates reflect stabilized income, arm's-length sales, and City of Edmonton non-residential mill rate of $27.26. Properties with longer lease terms, higher clear heights, dock loading, and ring-road proximity compress toward the lower end of range.

Building Type Bay Size Clear Height Net Rent (2025) Cap Rate Range Typical Tenants
Big-Bay Warehousing / Distribution 30,000–80,000+ sf 26–32 ft $12–15/sf 5.75–6.25% Regional distributors, e-commerce, food & bev, fleet
Mid-Bay Manufacturing 8,000–30,000 sf 22–26 ft $11–14/sf 6.0–6.75% Metal fab, wood products, plastics, food processing
Auto-Oriented Industrial (NNN Dealer) 10,000–40,000 sf 18–24 ft $13–16/sf 6.25–6.75% Franchised auto dealers, large collision centres
Auto Service / Fleet Maintenance 3,000–15,000 sf 16–22 ft $11–14/sf 6.5–7.0% Independent auto service, tire, fleet operators
Small-Bay Flex Industrial 1,500–8,000 sf 14–20 ft $10–13/sf 6.75–7.25% Contractors, trades suppliers, light assembly, distributors
Office/Warehouse Flex 2,000–10,000 sf 14–18 ft $10–13/sf 6.75–7.25% Medical device, tech repair, specialty contractors, service businesses
Outdoor Storage / Contractor Yard 10,000–100,000 sf site N/A $3–5/sf site 7.0–7.5%+ Equipment rental, oilfield supply chain, landscaping, recycling

Cap rates represent stabilized income assumptions at City of Edmonton non-residential mill rate of $27.26 (2025). Individual transactions vary based on tenancy, lease term, building condition, and location within the submarket. Data sourced from Canada's Home Commercial broker observations; not a guarantee of future performance.

Highway Access & Logistics Infrastructure

SE Edmonton industrial's primary competitive advantage is its position on the ring road network. The Parsons Road / Anthony Henday Drive interchange at the south end of the submarket provides immediate ring-road access — turning eastward reaches the Trans-Canada Highway via Yellowhead Trail (Hwy 16) in under 20 minutes; turning westward connects to the west Edmonton industrial districts (Yellowhead, NW Industrial) and Stony Plain Road.

Critically for logistics operators, QEII Highway south from Anthony Henday Drive reaches the Nisku/Leduc industrial market — Alberta's largest oilfield services and logistics hub and home to Edmonton International Airport (YEG) — in approximately 15 minutes. This positions SE Edmonton as a viable northern satellite for operators who need proximity to both the Edmonton urban core and the Nisku/Leduc cluster without paying Nisku land premiums.

34 Street connects north to Whyte Avenue (82 Avenue) and downtown Edmonton, making SE Edmonton industrial properties accessible for both truck freight and labour commuting from the large south Edmonton residential population. Mill Woods, Rutherford, and Terwillegar are all within a 10–15 minute drive, providing a deep labour pool for manufacturing and logistics operations.

SE Edmonton vs. Nisku/Leduc — Market Comparison

Factor SE Edmonton Industrial Nisku / Leduc
Industrial Cap Rate 5.75–7.25% 5.75–6.75%
Net Rent Range $10–15/sf $12–18/sf
Mill Rate (Non-Res) $27.26 (City of Edmonton) Lower (Leduc County)
Vacancy Rate ~4.5% ~3.0%
YEG Airport Access ~20 min via QEII Adjacent / 5 min
Dominant Use General industrial, auto-oriented, flex Oilfield services, airport logistics, cold chain
Land Cost Lower (City) Higher (premium market)
Labour Access Large south Edmonton residential pool Leduc/Nisku, some Edmonton commute

SE Edmonton Industrial — Frequently Asked Questions

What industrial uses are found in SE Edmonton?
SE Edmonton's industrial corridor along 34 Street and Parsons Road accommodates a wide range of uses including general manufacturing, warehousing and distribution, auto-oriented services (dealerships, body shops, parts suppliers, fleet maintenance), light industrial flex, building materials, and contractor yards. The area is zoned primarily IB (Industrial Business) and IM (Industrial Medium) under the City of Edmonton Land Use Bylaw.
What are industrial cap rates in SE Edmonton in 2025?
Industrial cap rates in SE Edmonton range from 5.75–7.25% in 2025, depending on building type, bay size, clear height, and lease term. Modern big-bay warehousing with dock loading and 26–32 ft clear heights near Anthony Henday Drive trades at the lower end (5.75–6.25%). Older small-bay flex and auto service industrial trades at 6.75–7.25%. Auto dealer NNN properties with long-term franchise leases trade at 6.25–6.75%.
What are industrial lease rates in SE Edmonton?
Industrial net rents in SE Edmonton range from $10–15/sf net in 2025. Modern warehousing and distribution space with higher clear heights at the Anthony Henday gateway commands $12–15/sf. Older small-bay flex, auto-oriented, and light manufacturing space typically leases at $10–13/sf net. Additional rent (operating costs, property tax, insurance) typically adds $4–7/sf depending on building age and management.
How does SE Edmonton connect to the highway network?
SE Edmonton's Parsons Road corridor connects directly to Anthony Henday Drive (the ring road) at the south end, providing ring-road access to all quadrants of the city. QEII Highway south from Anthony Henday reaches the Nisku/Leduc industrial market and Edmonton International Airport (YEG) in approximately 15 minutes. 34 Street connects north to Whyte Avenue and downtown Edmonton, while 66 Street provides access to southeast suburbs including Mill Woods and South Common.
How does SE Edmonton industrial compare to Nisku/Leduc?
SE Edmonton industrial generally offers lower land costs and a broader mix of industrial uses compared to Nisku/Leduc. Nisku/Leduc commands premium rents and tighter vacancy (~3.0%) due to oilfield services demand and airport proximity. SE Edmonton offers a larger labour pool from south Edmonton residential, slightly higher cap rates (more value for buyers), and City of Edmonton zoning flexibility — at the cost of a higher mill rate vs. Leduc County and somewhat less direct airport access.
What is the City of Edmonton mill rate for industrial properties?
The City of Edmonton 2025 non-residential mill rate is $27.26 per $1,000 of assessed value. This applies to all industrial properties within city limits, including the SE Edmonton industrial corridor. Properties in Leduc County (including Nisku) are subject to Leduc County's lower non-residential mill rate, which contributes to lower effective operating costs in that market relative to Edmonton.

SE Edmonton Industrial — Buy, Sell, or Lease

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