Commercial real estate sales in the first quarter of 2017 have slowed compared to last year, but dollar volumes are on the rise thanks to an impressive increase in office and retail prices.
Real Estate Board of Greater Vancouver (REBGV) statistics released today (June 12, 2017) express a 19.7 per cent decrease in sales since 2016. The first quarter of 2016 saw 699 total commercial sales, while 561 total sales were recording during the first quarter of 2017.
“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, REBGV president.
Dollar volumes, however, are up 18.2 per cent over 2016. Total sales value rose from $3.287 billion in Q1 2016, to $3.884 billion in Q1 2017.
An overall dollar volume increase is lead by an 80.1 per cent increase in office and retail value, and a 55 per cent rise in multi-family prices.
Retail and office sales value rose from $896 million in 2016 to $1.61 billion in 2017. The number of sales only decreased 2.4 per cent, from 208 property sales in 2016 to 203 in 2017.
Multi-family dollar volume grew from $242 million in 2016 to $375 million. Twenty-seven multi-family properties sold across Greater Vancouver during the first quarter of 2017, versus 39 in first quarter 2016.
Not all sectors saw an increase in prices.
Land and industrial values decreased 11.6 per cent and 13.6 per cent, respectively, since 2016.