Fewer commercial real estate sales to start 2019
Commercial real estate sales in the Lower Mainland declined in the first quarter (Q1) of 2019 compared to the active market experienced across the region last year.
There were 318 commercial real estate sales in the Lower Mainland in Q1 2019, a 42.1 per cent decrease over the 549 sales in Q1 2018, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).
The total dollar value of commercial real estate sales in the Lower Mainland was $1.531 billion in Q1 2019, a 57.3 per cent decrease from the $3.587 billion in Q1 2018.
“Much like we’ve seen in the residential market, there’s been reduced demand in the commercial real estate market through the first quarter of the year,” Ashley Smith, REBGV president said. “With housing inventory at a five-year high and more supply on the way, the development community appears to be taking a more cautious approach."
Q1 2019 activity by category
Land: There were 87 commercial land sales in Q1 2019, which is a 63.1 per cent decrease from the 236 land sales in Q1 2018. The dollar value of land sales was $709 million in Q1 2019, a 61.3 per cent decrease from $1.832 billion in Q1 2018.
Office and Retail: There were 131 office and retail sales in the Lower Mainland in Q1 2019, which is down 26.8 per cent from the 179 sales in Q1 2018. The dollar value of office and retail sales was $367 million in Q1 2019, a 72.6 per cent decrease from $1.339 billion in Q1 2018.
Industrial: There were 92 industrial land sales in the Lower Mainland in Q1 2019, which is down 20.7 per cent from the 116 sales in Q1 2018. The dollar value of industrial sales was $392 million in Q1 2019, a 35.1 per cent increase over $290 million in Q1 2018.
Multi-Family: There were eight multi-family land sales in the Lower Mainland in Q1 2019, which is down 55.6 per cent over the 18 sales in Q1 2018. The dollar value of multi-family sales was $62 million in Q1 2019, a 50.2 per cent decrease from $125 million in Q1 2018.
Land includes properties that are holding properties, farmland, garden centres, redevelopment sites, land assembly sites, vineyards, etc.
Office and Retail properties are defined by the zoning according to each municipality and must have a building on the site. This category includes: Office, office condo, retail, retail condo, shopping centre, gas station, car dealerships, banks, community centres, day care, educational facility, institutional, golf courses, movie theatre, hotel, churches, restaurants, truck stops and others.
Industrial properties are also defined by the zoning according to each municipality and must have a building on the site. This includes warehouses, warehouse bays and multi-bay warehouses.
Multi-Family properties include: nursing homes, high rises, low rises, and any condo or townhome properties containing four or more units with at least one zoned for commercial use.