Avison Young, which released the figures this week, said the record sales dollar volume and total deals were the result of low borrowing costs and a redeployment of capital led by REITs, pension funds and public and private institutional buyers.
But an even bigger factor â€“ a shortage of land â€“ is likely to keep the commercial market strong for years to come, said the report.
â€œBarring any macroeconomic developments that could disrupt global financial activity, the fundamentals of the metro Vancouver industrial real estate marketplace remain solid,â€ said Avison Young. â€œIn a land-constrained market with a self-regulated development community, oversupply is unlikely to become a factor.â€
One of the more dramatic increases in 2010 was seen in the second half of the year for office product. In that time, dollar volume increased more than 50%. In retail, the largest investment sector last year in British Columbia, there was $1.2 billion spent on 40 retail locations.
On a smaller scale, multi-family investment buildings saw $264.1 million in sales in Metro Vancouver, as rental vacancy slipped to 1.9% in October 2010 from 2.1% a year earlier.
â€œStrong migration flows and fewer first-time buyers moving out of rental accommodations into homeownership pushed the vacancy rate lower,â€ said the report.
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