Commercial real estate sales dip below 2016 record high
Declining sales in land and industrial sectors led the 32 per cent decrease in year-over-year transactions
Copyright © Western Investor
Commercial real estate sales in the second quarter of 2017 have decreased 32 per cent, returning to more traditional values following a record-setting 2016.
There were 595 commercial sales across the Lower Mainland this quarter versus 875 sales in the second quarter of 2016, according to Commercial Edge, the real estate data system operated by the Real Estate Board of Greater Vancouver (REBGV).
Total dollar volume has also decreased 37.5 per cent, from $4.6 billion in Q2 2016 to $2.8 billion in Q2 2017.
Sales have decreased year-over-year in every commercial sector.
“Land and industrial sales experienced the largest year-over-year declines last quarter, with sales in both categories down more than one-third compared to 2016,” said Jill Oudil, REBGV president. “Looking back over several years, however, we see that last quarter’s sale and dollar value activity follow more historically normal trend lines.”
Land sales decreased nearly 40 per cent year-over-year, from 374 sales to 227. Dollar volumes decreased more modestly, 23.2 per cent from $2.1 billion in Q2 2016 to $1.5 billion in Q2 2017.
Industrial sales declined nearly 35 per cent, from 175 sales in 2016 to 114 in 2017.
Multi-family sales posted the least decline, dropping only 14 per cent year-over-year. Dollar volumes only moved 6.8 per cent from $384 million in Q2 2016 to $358 billion in Q2 2017.
Sales volumes are still trending above 2013 and 2014 levels, but has returned to 2015 levels and declined considerably since the Q2 high (see charts below).