Commercial real estate sales down, values up in the first quarter of 2017

Commercial real estate sales in the Lower Mainland declined in the first quarter (Q1) of 2017 compared to last year while the total dollar value of sales increased across most property types.

There were 561 commercial real estate sales in the Lower Mainland in Q1 2017, a 19.7 per cent decrease over the 699 sales in Q1 2016, 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 $3.884 billion in Q1 2017, an 18.2 per cent increase from the $3.287 billion in Q1 2016.

“Commercial real estate activity is below last year’s record-breaking pace and more in line with historical levels in the Lower Mainland,” said Jill Oudil, Real Estate Board of Greater Vancouver REBGV president. “The value of what’s being sold, particularly for office and retail properties, is on the rise.”

Q1 2017 activity by category
Land: There were 220 commercial land sales in Q1 2017, which is a 25.7 per cent decrease from the 296 land sales in Q1 2016. The dollar value of land sales was $1.674 billion in Q1 2017, an 11.6 per cent decrease over $1.895 billion in Q1 2016.

Office and Retail: There were 203 office and retail sales in the Lower Mainland in Q1 2017, which is down 2.4 per cent from the 208 sales in Q1 2016. The dollar value of office and retail sales was $1.614 billion in Q1 2017, an 80.1 per cent increase over $0.896 billion in Q1 2016.

Industrial: There were 111 industrial land sales in the Lower Mainland in Q1 2017, which is down 28.8 per cent over the 156 sales in Q1 2016. The dollar value of industrial sales was $0.219 billion in Q1 2017, a 13.6 per cent decrease over $0.253 billion in Q1 2016.

Multi-Family: There were 27 multi-family land sales in the Lower Mainland in Q1 2017, which is down 30.8 per cent over the 39 sales in Q1 2016. The dollar value of multi-family sales was $0.375 billion in Q1 2017, a 55 per cent increase from $0.242 billion in Q1 2016.

Category Definitions:
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. 

Owned and operated by the Real Estate Board of Greater Vancouver (REBGV), the Commercial EDGE system includes all commercial real estate transactions in the Lower Mainland region of BC that have been registered with the Land Title and Survey Authority of British Columbia. Commercial EDGE is updated monthly based on data originating from the BC Assessment Authority. Commercial EDGE does not include share sale transactions as they are not registered with the Land Title and Survey Authority of British Columbia. Please note that historical data may be subject to revision as transaction records are received from the Land Title and Survey Authority of British Columbia.