Demand for commercial real estate in the Lower Mainland has weakened according to new figures from the Real Estate Board of Greater Vancouver.
CRE sales in the area were down 13.6% in 2018 compared to 2017 with a total 2,266 recorded by Commercial Edge, REBGV’s commercial real estate system.
There was a 5.2% decrease in total dollar volume to $15.622 billion.
"Demand in the Lower Mainland’s commercial real estate market changed pace in 2018," said Ashley Smith, REBGV president. "While dollar volumes remained up near the highs we’ve experienced in recent years, we’ve seen reduced demand in line with slower economic growth and rising interest rates."
All categories declined
The decrease in sales was across all four main commercial real estate categories.
There were 861 commercial land sales in 2018, down 20% year-over-year and there was an 8% decrease in dollar value to $8.281 billion.
For office and retail, the total of 815 sales in the Lower Mainland in 2018, is 9.2% lower than the previous year while the dollar value of $4.647 billion was, a 2.8% decrease.
There were 489 industrial land sales in the Lower Mainland in 2018, down 7.7% from 2017 with an 11.7% decrease in dollar value to $1.441 billion.
Multi-family land sales totaled 101, down 15.8% year-over-year. The dollar value of multi-family sales was $1.253 billion in 2018, an 11.2% decrease from 2017.
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