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Showing posts for tag industrial property companies vancouver bc canada (Back to Index)
Showing posts for tag industrial property companies vancouver bc canada (Back to Index)
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Industrial Real Estate Hits 15-Year High in Vancouver
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(Posted on Apr 18, 2016 at 07:53PM by Michelle Bogle)
Vancouver’s industrial real estate sector reached an all-time high in 2015. A total of 4.5 million square feet of industrial space was sold, making this the biggest increase the city has seen in 15 years.
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Growth in Vancouver’s industrial asset class is largely being driven by an increase in e-commerce. Cities like Vancouver, Toronto and Montreal have all been stimulated by a rapidly evolving e-commerce sector that has a high demand for warehouse and distribution facilities that are large in size, well-located and highly automated.
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With the low Canadian dollar, low energy prices and low interest rates, foreign investors – especially those from the United States – are setting their sights on Vancouver’s industrial sector at a fast rate.Â
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Robust growth in this asset class in expected to continue to rise over the coming years with more record breaking transactions in the books.Â
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If an industrial real estate investment is in your near future, strike now while the iron is hot and inventory still remains. For more information, please contact our office to speak to one of our skilled advisors.Â
Vancouver Crushes the Rest of Canada with the Highest Hotel Prices
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(Posted on Apr 16, 2016 at 01:00PM by Michelle Bogle)
British Columbia’s hotel market is hot right now – so hot, that it’s putting other provinces to shame with its nation-leading, strong transaction activity of $612 million – a property sales spike of 216%.Â
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Our province is also home to the highest “per-key†prices in the country with an average sale price of $269,400 per room. This figure is more than doubled that of neighbouring Alberta.
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In 2015 alone, there were a number of record breaking hotel transactions – including the $180 million purchase of the Fairmont Hotel Vancouver and the $290 million sale of the Westin Bayshore. The Bayshore transaction is unique, as it is widely considered a land transaction. The hotel and its six-acre Coal Harbour site were bought by residential developer Concord Pacific.
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What is contributing to this success? For one, asset appreciation has played a large role with Vancouver’s real estate values experiencing rapid growth. The lower Canadian dollar has also increased tourism within Vancouver, which has created more demand within the hospitality asset class.
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The outlook for the Vancouver hotel market continues to stay positive. Overall, hotels will remain a thriving asset class in 2016, thanks to Canada’s awareness on the global scale for attracting travelers (individual, business and group) and the interest of cross-border investors, who are honing in on major urban markets.
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For more information on Vancouver’s hospitality asset class, please contact our office to speak to our skilled team of advisors.
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Millennial Market is Central to Commercial Real Estate Expansion
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(Posted on Apr 12, 2016 at 01:00PM by Michelle Bogle)
Millennials were a large topic of discussion at the recent Vancouver Real Estate Forum. According to many retail and real estate executives at the event, this highly influential generation – those aged 18-35 – is driving commercial real estate expansion at a fast rate.
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The reason? Space.
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As many young Canadians are moving back into urban cores, like Vancouver, they are having to live in smaller condos and apartments that don’t offer much space for recreation or entertaining.
As a result, many millennials are looking to spend their disposable income on experiences, like gaming, live entertainment, dining, activities, shopping and more – all outside of the home.
As a result, many millennials are looking to spend their disposable income on experiences, like gaming, live entertainment, dining, activities, shopping and more – all outside of the home.
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And, does this generation ever have disposable income! Many young millennials go out several times a week and pump money into the local economy simply because they can – many are renters and public transit riders, which leaves more money in their pockets for entertainment and shopping.
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As a result, the demand for commercial space is on the rise in cities like Vancouver, as business owners and investors are trying to cater to this deep-pocketed generation that wants to go out, see, spend and do.Â
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This demand is largely centralized within Vancouver’s retail and hospitality asset categories – two asset categories that our team of experienced advisors specialize in.Â
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For more information on how the millennial generation is driving growth in Vancouver’s commercial real estate market, please contact us our office for details.
Vancouver is the New Home for Global Business
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(Posted on Apr 8, 2016 at 01:00PM by Michelle Bogle)
Marcus and Millichap – Your Senior Housing Specialists
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(Posted on Apr 6, 2016 at 01:00PM by Michelle Bogle)
Foreign Investors Set Their Sights on Vancouver
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(Posted on Apr 1, 2016 at 04:11PM by Michelle Bogle)
Foreign investment in the Canadian commercial real estate industry has been on the rise for quite some time. In fact, in the last six months, foreign investment figures have climbed by 143%, which translates to an astounding $1.85 billion.
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And, the Metro Vancouver Area is seeing a bulk of that incoming capital – $798 million of it, to be exact, with most of it funneling in from China.
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Many industry insiders claim that global uncertainty, the low Canadian dollar and perceived factors, such as political stability, an emphasis on higher education and livability, make Vancouver an ideal market for foreigners to invest in.Â
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And, they are. Take the multi-family rental market, for example, which saw a huge increase in 2015 – sales rose by 47% to 181 transactions and the dollar volume increased by 99% to $1.55 billion last year compared to 2014. Many of these investors are from outside of Canada.
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This trend isn’t looking to slow either. In fact, according to Dan Scarrow of the Canadian Real Estate Investment Centre located in Shanghai, China, younger Chinese-Canadians are expected to buy real estate in the future, as they are set to inherit more than $1 trillion over the next three decades.
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It’s no wonder why the world has their eyes on Canada’s commercial real estate market, especially on the Lower Mainland.
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For more information on foreign investments in the Vancouver area, please contact our office to speak to one of our advisors.
Craft Beer Boom Causes High Demand for Industrial Space
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(Posted on Mar 26, 2016 at 01:00PM by Michelle Bogle)
There’s something big “brewing†in East Vancouver – a craft beer revolution is taking over the industrial parts of the area now known as “Yeast Vanâ€.
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This shift started to take root nearly three years ago when then province changed the liquor rules for craft breweries. Previously, beer lovers were only allowed to taste free samples and purchase one meager 12-ounce beer on the premises.Â
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However, the new rules changed these archaic ways – patrons are now allowed to purchase product and pints while visiting their favourite craft breweries. A much-welcomed change for the local economy and a change that has beer connoisseurs “hoppingâ€.
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Today, there are 23 craft breweries open, or about to open, in Vancouver – 14 of which opened their doors in the last three years since the legislation change. All are thriving and the industry as a whole is experiencing much growth as the demand for local, quality beer soars.
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As the demand rises, so does the need for available industrial space for prospective brewers looking to quench the thirst of local beer lovers. At minimum, these brewers are in need of industrial space around 5,000 sq. ft., but that number has been known to climb between 15,000 and 30,000 sq. ft.Â
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And, the competition is fierce in the emerging heart of East Vancouver’s brewing district – when space becomes available, it’s often sought after by a number of eager groups ready to invest in this growing market.Â
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The timing couldn’t be better for commercial real estate investors looking to get into East Vancouver’s industrial sector. To learn more about available opportunities, please contact our office to speak with one of our skilled advisors.
Self-Storage Sites Capitalize on Vancouver’s Condo Boom
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(Posted on Mar 23, 2016 at 04:16PM by Michelle Bogle)
As more condo developments have sprouted up across Vancouver, self-storage facilities have been cashing in on small-space dwellers looking for a solution to house their belongings.
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Due to the high demand for self-storage, rental rates have gone up significantly, thereby lining the pockets of operators and investors alike.
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In fact, self-storage is big business in Vancouver. Many properties are experiencing 90% occupancy levels and per-square-foot rents that match that of a condo unit.
For example, the typical rent for a self-storage unit runs from $1.84 to $2.00 per square foot, which is equal to a typical condo rent in Metro Vancouver. When you consider that the average customer stores their belongings for three years, the revenues really do add up.
For example, the typical rent for a self-storage unit runs from $1.84 to $2.00 per square foot, which is equal to a typical condo rent in Metro Vancouver. When you consider that the average customer stores their belongings for three years, the revenues really do add up.
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What does this mean for Vancouver’s commercial real estate sector? It means that one person’s junk is another one’s steady cash flow. So much so, that more institutional investors are looking to get into the self-storage business by either buying from existing independent operators, or converting former retail properties into self-storage meccas.
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To learn more about this growing opportunity, please contact our office to speak with one of our commercial real estate advisors.
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Aging Population Drives Growth in the Senior Housing Sector
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(Posted on Mar 21, 2016 at 06:00AM by Michelle Bogle)
When it comes to profitability in the senior housing market, occupancy is the main driver. As populations age, so does the need for available senior residences.Â
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According to Statistics Canada, 2015 estimates show that, for the first time, there were more persons aged 65 years and older in Canada than children aged 0 to 14 years. Nearly 16.1% were at least 65 years old, compared to the 16% of children aged 0 to 14 years.
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And, based on Statistics Canada’s most recent population projections, the share of individuals aged 65 years and older will continue to increase and account for 20.1% of the population in 2024, while the share of children aged 0 to 14 years should account for just 16.3%.
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What does this mean for Vancouver’s senior housing market? It means a significant demand for seniors’ residences and an overall rise in the sector’s profile with potential investors. Plus, with a number of Vancouver-based seniors selling multi-million dollar west-side private residences, there is a growing market of mature adults ready and willing to pay more for luxurious, private care.
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If investing in Vancouver’s commercial senior housing market is of interest to you, please contact our office at Marcus & Millichap Vancouver to speak with an advisor about this growing opportunity.Â
Vancouver’s Multi-Family Rental Sector is in Overdrive
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(Posted on Mar 20, 2016 at 06:00AM by Michelle Bogle)
Vancouver’s commercial real estate market, especially the multi-family category, is sizzling right now with unprecedented sales numbers across the Lower Mainland. Industry professionals and investors are experiencing a surge in prices to unseen levels.
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According to the Goodman Report’s 2015 Year-End Review, Vancouver’s multi-family rental building sales saw a huge lift in 2015. In fact, sales rose by 47% to 181 transactions and the dollar volume increased by 99% to $1.55 billion last year compared to 2014.
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There are a number of factors that contributed to this major uptick, including Vancouver’s worldwide appeal and climbing immigration levels. The weakened Canadian dollar and historically low interest rates have also played a key role in the hot market. With a low inventory of affordable accommodations, difficulties in developing new rental stock and undersupplied rental suites, bidding wars have become the new normal.
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The outlook for 2016 looks to be much of the same – if not more. Industry professionals are anticipating dollar volumes to hover around the $2 billion range by the end of the year. The demand is very high with no let-up in sight.
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To learn more about Vancouver’s booming multi-family market, please contact our office to speak with one of our commercial real estate advisors.
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