Demand for commercial real estate declines in 2018

DEMAND FOR COMMERCIAL REAL ESTATE DECLINES IN 2018

The commercial real estate market in the Lower Mainland saw fewer sales and lower dollar volumes in 2018 compared to recent years.


There were 2,266 commercial real estate sales in the Lower Mainland in 2018, a 13.6 per cent decrease from 2,624 sales in 2017, 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 reached $15.622 billion in 2018, a 5.2 per cent decrease from $16.483 billion in 2017.


“Demand in the Lower Mainland’s commercial real estate market changed pace in 2018,” said Ashley Smith, REBGV president. “While dollar volumes remained up near the highs we’ve experienced in recent years, we’ve seen reduced demand in line with slower economic growth and rising interest rates.”

2018 ACTIVITY BY CATEGORY

Land: There were 861 commercial land sales in 2018, which is a 20 per cent decrease from the 1,076 land sales in 2017. The dollar value of land sales was $8.281 billion in 2018, an 8 per cent decrease from $9 billion in 2017.

Office and Retail: There were 815 office and retail sales in the Lower Mainland in 2018, which is down 9.2 per cent from the 898 sales in 2017. The dollar value of office and retail sales was $4.647 billion in 2018, a 2.8 per cent decrease from $4.781 billion in 2017.


Industrial: There were 489 industrial land sales in the Lower Mainland in 2018, which is down 7.7 per cent from the 530 sales in 2017. The dollar value of industrial sales was $1.441 billion in 2018, an 11.7 per cent increase from $1.290 billion in 2017.


Multi-Family: There were 101 multi-family land sales in the Lower Mainland in 2018, which is down 15.8 per cent from 120 sales in 2017. The dollar value of multi-family sales was $1.253 billion in 2018, a 11.2 per cent decrease from $1.411 billion in 2017.

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.