Commercial real estate sales in Vancouver in the first six months of the 2012 reached a record level of $1.42 billion, breaking the previous record of $1.03 billion set in the same period of 2010. According to the report from Avison Young, investors opened their wallets to add $700 million into the local economy by buying office buildings alone. A total of 17 transactions closed from January-June, compared with 12 in the first half of 2011 and 13 in the latter six months of last year.
The Vancouver market has set a second record, according to a report published by RealNet Canada: over $1 billion in transactions per quarter for six consecutive quarters. These figures point to a perceived stability and security in the local commercial real estate market.
CBRE Ltd.’s latest report confirms that finding, noting that the availability rate for industrial property in Metro Vancouver remained unchanged at 7.3 per cent. The regional vacancy rate was up 30 basis points to 4.7 per cent.
The office market was up slightly to 8 per cent, buy key markets in the area remained tight. Vacancy rates for AAA office space in the downtown core remained at record lows of 0.7 per cent. Vacancy rates for A-level office space sat at 1.8 per cent.
The CBRE report also stated that leasing activity in the region has remained stable. Gross leasing was 664,190 square feet in the second quarter of 2012, which was slightly higher than the first quarter of the year. CBRE office market report is predicting activity for the rest of the year will remain muted due to economic uncertainty, especially in suburban areas.
Approximately one million square feet of new industrial property has been built in the area, and 2.2 million square feet of office space currently under construction. A total of 4.8 million in retail space will be added over the next several years, which is good news for developers and consumers alike.
