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Metro Van commercial real estate sales drop 40%

Lower Mainland commercial real estate sales in the first quarter (Q1) of this year fell to the lowest level for sales volume in a first quarter since 2009, reports the Real Estate Board of Greater Vancouver.
Lower Mainland commercial real estate sales in the first quarter (Q1) of this year fell to the lowest level for sales volume in a first quarter since 2009, reports the Real Estate Board of Greater Vancouver.
The total dollar value of commercial sales in the region was $886 million in the first quarter, a 40 per cent decline from the same period in 2012. There were 384 commercial real estate sales in the Lower Mainland in the first three months of 2013.
"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, Board 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 Board's Commercial Edge system, which tracks the non-residential real estate market, 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 of British Columbia since 2009.
By sector, the study found:
• Land: There were 91 commercial land sales, down 42.4 per cent from the first quarter of 2012. The dollar value of land sales in was $322 million, down 43.5 per cent from a year earlier.
• Office and Retail: There were 159 office and retail sales in the Lower Mainland, a 6.5 per cent decline from the same period in 2012. The dollar value of office and retail sales in Q1 2013 was $253 million, a 58 per cent decrease from Q1 2012.
• Industrial: There were 109 industrial land sales in the Lower Mainland in Q1 2013, down 14.2 per cent from Q1 2012. The dollar value of industrial sales in was $211 million, a 12.1 per cent increase from the same period a year earlier.
• Multi-Family: There were 25 multi-family sales in the Lower Mainland in Q1 2013, which is unchanged from Q1 2012. The dollar value of multi-family sales in Q1 2013 was $99 million, a 15 per cent decline from a year earlier.