Proving to be especially resilient against the negative impacts of the global trade turmoil, British Columbia’s commercial real estate continued to pull in significant investment volumes during the first half of 2019.
According to the new Mid-Year 2019 Investment Review (British Columbia) report by Avison Young, total transaction numbers during that period (85 commercial deals) were the third largest ever in the market, behind only the historic levels seen last year (102 deals) and in 2017 (109 deals).
Total dollar value exceeded $2.74 billion, with office and industrial assets drawing in the largest investments. These properties are expected to continue attracting substantial volumes for the foreseeable future.
The office sector accounted for 70% of the first-half total at more than $1.9 billion. This was spread across 21 sales, including the major Bentall Centre transaction valued at $1.05 billion.
“Investor appetite for office properties in Metro Vancouver, particularly in the core, will remain robust through 2019 with quality assets attracting multiple bids and achieving premium pricing,” Avison Young stated.
Industrial properties represented 40% of the total sales number with 39 deals closed. With a total value of more than $391 million, the property type continues to be one of the region’s strongest draws.
“Significant rental rate appreciation since 2014/15, which has been driven in part by record low vacancy rates, has made industrial assets more appealing to investors, while also providing an impetus for business owners to consider acquiring strata space as opposed to leasing,” Avison Young explained.”
“Industrial deal and dollar volume in the second half of 2019 will likely surpass the results of the first half as a number of sales are expected to close by year’s end.”
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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