By Altus Group | 19 septembre 2018

Transit Oriented Development and Investment Continue to be Driving Forces in Vancouver Commercial Real Estate Market

Q2 2018 registered a total of 553 sales transactions over $1 million, representing a total value of $3.7 billion

VANCOUVER ‒ Altus Group, a leading provider of software, data solutions and independent advisory services to the commercial real estate industry, today announced Q2 2018 results for commercial real estate investment in the Vancouver market area. Overall dollar volume of investment in the market is up from the previous quarter by 22%, and up 6% from the second quarter of 2017.

Pie chart showing total dollar volume of Q2 2018 Vancouver property transactions by sector


Land sales in the Vancouver market area continue to dominate the overall share of investment in the market. In the second quarter of 2018 the residential land sector recorded $1.6 billion in sales while ICI land posted $530 million.

Land transactions contributed 59% of the market share of total dollar volume. Residential land is up 11% from the same quarter in 2017, and 34% from Q1 2018, totaling nearly 45% of the overall investment volumes for the second quarter. 227 residential land sales were recorded with developers being the dominant buyers in transactions over $10 million.

The City of Vancouver is still dominant in the number of transactions and overall dollar volume in the residential land market this quarter recording five of the top ten deals by price. Notably, the acquisition of 1640-1650 Alberni Street, improved with a residential and office tower, sold to Landa Global Properties, from Hollyburn Properties, for a total consideration of $130,000,000, representing an estimated price per square foot buildable of $550, based on recent applications considered, and supported, by the City.  An underlying thread this quarter appears to be the continued acquisition of residential development sites near transit hubs. 5055 Joyce Street, a 0.37 acre site, was one of the top three deals of the quarter and was acquired by Westbank for $55 million. The property was acquired by the vendor, the YMCA, in 2012 for $7.5 million, a lift in excess of 600%.

Office transaction volume has increased by 84% since the previous quarter but is down 38% from Q2 2017. Surrey accounted for over 50% of the office investment volume in the second quarter and held five of the top ten office deals by price. Much of this investment has been centred on the new Lark Group development, City Centre 2, a LEED-Gold, 12-storey, strata office building located in Surrey’s Health and Technology district, near the King George Skytrain station and the planned LRT line connecting Langley to Surrey. Notably, the largest strata office transaction of the second quarter, and second largest ever (behind 1212-1236 West Broadway, $34.7M, $722 per square foot, February 2018) was in City Centre 2. Safe Software Inc. made City Centre 2 their new headquarters, purchasing 55,581 square feet, representing a price per square foot of $547, a similar price point to the balance of the sales in City Centre 2.

Despite the increasing value of the strata office market across the region, it is expected that developments like City Centre 2, Class-A office parks in accessible locations along transit, will continue to be major contributors to overall investment in the office market given the drivers of potential LRT projects, municipal incentives, and partnerships with the collaborative Innovation Boulevard.

Contrary to the sometimes-ominous discourse surrounding the fate of retail with the continued growth of e-commerce, the Vancouver market has showed considerable resilience in this sector. Retail transaction dollar volume is up from the previous quarter by 15%, and up slightly from the second quarter of last year. Transaction dollar volume was bolstered by two significant deals along the proposed Broadway Skytrain extension, 1451-1459 West Broadway and 2625 Granville Street. These two deals were valued at $14,000,000 and $7,280,000, respectively, and commanded over $2,100 per square foot. The high price per square foot points to increasing demand and potential speculation along the proposed Broadway extension as the planning process for the Skytrain line further unfolds.

“This second quarter has seen a push in terms of both dollar volume and velocity over the first quarter of 2018, helping the Vancouver market post its sixth consecutive quarter over the $3 billion threshold as private investors and developers remained very active this quarter,” noted Paul Richter, Director, Data Solutions at Altus Group. “2018 to date has been shaped by the announcements of investment in new forms of transit by provincial and federal governments, new neighbourhood plans to accommodate increased density, investment along Broadway, the proposed LRT in Surrey, as well as infill opportunities surrounding existing transit lines.”



Data Solutions connects the Canadian real estate industry through the delivery of data with unparalleled breadth, integrity and relevance.  We cover new homes, investment transactions and commercial market inventory in key markets, and also provide intelligence on the national housing market and consumer home buying and borrowing patterns.

Our solutions are used by real estate industry stakeholders to gain market intelligence, identify and validate opportunities, benchmark, strategically plan, manage risk and more.

Data Solutions is part of Altus Analytics, the software and data solutions business of Altus Group, where our focus is to empower real estate clients and partners to work collaboratively to enhance decision making, drive performance and optimize transactional efficiency. Our solutions enable firms to better organize and manage data and connect with the right information and analytics to help them gain a complete picture of real estate assets, portfolios and transactions.

For more information on Data Solutions, please visit



Altus Group Limited is a leading provider of software, data solutions and independent advisory services to the global commercial real estate industry. Our businesses, Altus Analytics and Altus Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,500 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors.  Altus Group pays a quarterly dividend of $0.15 per share and our shares are traded on the TSX under the symbol AIF.

For more information on Altus Group, please visit:


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Elizabeth Lambe
Manager, Communications
Altus Group
(416) 641 – 9787

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