Investors wanting to crack into the commercial market may want to keep an eye on this one budding area in Canada where sales of commercial properties in excess of $5 million have surged, according to a recent report.
Avison Young’s mid-year report on commercial real estate in British Columbia shows that a total of 56 transactions over $5 million accounted for $852 million in sales – the third highest figure since 2002.
Still, despite the impressive sales figures, Vancouver still has a way to go before becoming a commercial behemoth like Toronto.
“There are really small pickings, so it’s difficult to get into this market; so when you’re in the market … you’re very reluctant to let it go because it’s so difficult to get back in,” Michael Gill, Avison Young’s Vancouver principal told the Vancouver Sun. “It’s not like we have a hundred office buildings like you do in Toronto."
David William Beckingham from Dominion Lending Centres Commercial Capital Inc believes this market will only grow.
“This market transition will only increase the volume of business in the commercial real estate field because investors are increasingly interested in the security and stability of a real estate investment over a stock investment,” he says. “This transition will only increase the need for commercial mortgages and commercial mortgage brokers alike.”
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