Interest Rates Low for Q3 in Vancouver, BC
commercial real estate blog vancouver bc, commercial real estate vancouver bc
Vancouver’s Commercial Real Estate Industry Shatters Record with 34% Increase in a Single Quarter
Tags:
(Posted on Sep 16, 2016 at 07:49PM by Michelle Bogle)
According to a recent report, Vancouver’s hot real estate activity is spilling over into the commercial sector where sales activity has spiked an astounding 34% in a single quarter – a figure that surpasses any previous records within the industry.Â
Â
In Q2 2016, there were $3.75 billion in real estate transactions – the sixth straight quarter of growth in Vancouver. Out of that $3.75 billion, 875 transactions in the quarter were $1 million and above. And, the number of deals has also jumped – from just 596 in Q1 2016 to 44% more in Q2.Â
Â
“The record-setting first half of 2016 has been fuelled by a combination of both high-value asset trades, as well as a sharp uptick in deal velocity,†noted Paul Richter, Director, Altus Data Solutions Canada. “The diversity in the market in terms of asset-by-asset contribution, at all price levels, will remain key in maintaining momentum going forward.â€
Â
In terms of the asset breakdown, office deals were up 10% from the previous quarter and accounted for 11.4% of all transactions in Q2. Retail deals jumped by 114% from the previous quarter and accounted for 13.8% of all transactions in Q2. Residential land acquisitions, on the other hand, accounted for 37.3% of all deals in the quarter and were up 36% from Q1.Â
Â
Additionally, large deals are also gaining in prominence with 19 transactions over the $25 million mark, which accounted for 28% of all capital flow in the quarter. Since Q3 2015 alone, Greater Vancouver has had between 11 to 14 transactions worth more than $25 million.
Â
As the real estate activity in Vancouver continues to spill over into the commercial sector, our team of associates have a close watch on the market. To learn more about investment opportunities across a range of asset classes within British Columbia, please contact our Vancouver office to speak with a broker.
Powered by Webstager