Commercial real estate investment has declined slightly during the first half of 2018, following a record-making 2017.
A new report by real estate data analysts’ Altus Group shows Vancouver commercial and land investment hit $14.5 billion last year – the highest annual transaction volume in the group’s history tracking data for the market. Land sales accounted for over $9 billion in transaction value.
Land sales are expected to remain strong throughout 2018, however, total investment property sales are currently down 7 per cent for the first half of the year.
Declining office stock may be the primary cause of this slight slowdown, with office sales so far this year only posting a third of the level of transactions recorded during the same period last year.
“About 1.3 million square feet of new office space has been added to the Vancouver Market Area in the past 8 quarters – less than half the amount added in the previous eight quarters,” the report reads.
Retail sales have decreased by 11 per cent so far,
Helping to offset the decline in office and retail sales, industrial and office transactions this year are up by $138 million and $124 million, respectively.