Fewer commercial property sales in first quarter 2013 – Vancouver Real Estate Update
The first quarter of 2013 saw a reduction in the total dollar value and quantity of commercial real estate sales in the Lower Mainland compared to recent years, 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 sales in the region was $886 million in the first quarter (Q1) of 2013, a 40 per cent decline from Q1 2012 and the lowest dollar value for Q1 since 2009.
There were 384 commercial real estate sales in the Lower Mainland in Q1 2013, according to Commercial Edge. This is a 20 per cent decline compared to the 480 sales recorded in Q1 2012, a 12.3 per cent decline from the 438 sales recorded in Q1 2011, and a 4.5 per cent decline from the 402 sales recorded over the same period in 2010.
“Commercial real estate activity eased in the Lower Mainland in first three months of the year. This comes on the heels of a strong post-recession commercial market over the past few years,” Sandra Wyant, REBGV president said. “Reductions in the total dollar value of land and office and retail properties were the key drivers behind this quarter’s declines compared to recent years.”
The Commercial Edge system includes all commercial real estate transactions in the Lower Mainland, excluding Pitt Meadows and Chilliwack, that have been registered with the Land Title and Survey Authority (LTSA) of British Columbia since 2009.
Q1 2013 activity by category:
Land: There were 91 commercial land sales registered with LTSA in the Lower Mainland in Q1 2013, down 42.4 per cent from the 158 land sales in Q1 2012. The dollar value of land sales in Q1 2013 was $322 million, down 43.5 per cent from $569 million in Q1 2012.
Office and Retail: There were 159 office and retail sales in the Lower Mainland in Q1 2013, a 6.5 per cent decline from the 170 office and retail sales in Q1 2012. The dollar value of office and retail sales in Q1 2013 was $253 million, a 58 per cent decrease from $602 million in Q1 2012.
Industrial: There were 109 industrial land sales in the Lower Mainland in Q1 2013, down 14.2 per cent from the 127 industrial land sales in Q1 2012. The dollar value of industrial sales in Q1 2013 was $211 million, a 12.1 per cent increase from $188 million in Q1 2012.
Multi-Family: There were 25 multi-family sales in the Lower Mainland in Q1 2013, which is unchanged from the 25 sales in Q1 2012. The dollar value of multi-family sales in Q1 2013 was $99 million, a 15 per cent decline from $116 million in Q1 2012.