Vancouver Investment Transaction Stats – Q2 2019
Commercial Real Estate in Vancouver Market Area Finds a New Normal in the Second Quarter
Q2 2019 registered a total of 402 property transactions over $1 million, representing a total value of $1.6 billion, a decrease of 2% from the previous quarter and a decrease of 57% compared to a year ago
VANCOUVER ‒ Altus Group, a leading provider of software, data solutions and independent advisory services to the commercial real estate industry, today announced the results for commercial real estate investment in the Vancouver market area for Q2 2019. The second quarter saw 402 sales transactions, totalling $1.6 billion.
Investment volumes over the first six months of 2019 were down by 53%, and deal counts were down by 32% when compared to the first half of 2018. Sector sales volume declines range from 21% for industrial to 74% for the apartment sector. The office market recorded the only positive gain, 51%, due mainly to two significant Q1 transactions with a combined total of $303 million.
(Vancouver Property Transactions – All Sectors by Quarter)
Despite little change in the overall sales volumes, second quarter investor confidence in the Vancouver market area has remained in line with levels measured in the first quarter, according to Altus Group’s Investment Trends Survey. On average, 4% yields are still expected in the office, retail and industrial markets, while the apartment market remains at 3.5%, according to Altus Group’s Investment Trends Survey.
The top transaction of the quarter was the sale of nine acres, from the City of Coquitlam to Polygon for just under $35 million, the first time in ten years that the top transaction has not exceeded $35 million. Of the top ten transactions in the second quarter, eight were categorized as land transactions, and values ranged from $19.8 million to nearly $35 million.
Q2 2019 recorded slight upticks, in terms of investment, in the retail, industrial and ICI Land sectors, and is in line with the investors’ preferred asset classes, according to Altus Group’s Investment Trends Survey. Industrial land was the most preferred in the Property Type Barometer survey question, with top transactions including:
- Port Coquitlam: 10.3 acres on Kingsway Avenue, $20.65 million
- Surrey (Port Kells): 4.9 acres, $14.5 million
The overall, regional average price per acre for industrial land settled at $2.4 million per acre in the second quarter.
Strata industrial properties had its biggest quarter ever, responsible for 74 of the 98 industrial transactions posted in the quarter. The release of multiple new projects, including Ironworks in Vancouver, IntraUrban Rivershore in Richmond, Glenlyon Centre in Burnaby and Campbell Heights North Commerce Center, each contributed to the record quarter for strata industrial in the Vancouver market area. The regional average price per square foot for strata industrial properties was $350, with strata sales ranging from $185 to $705 per square foot.
(Q2 2019 Vancouver Property Transactions – Total Dollar Volume by Sector)
“On the heels of the lowest transaction volume in six years, the second quarter posted slight overall gains from the previous quarter. The future of Vancouver’s overall market performance appears to be tied to, and dependant on, the demand for industrial space, evident in the growing industrial land markets, and the insatiable demand for strata industrial product going forward.” noted Paul Richter, Director, Data Solutions at Altus Group.
ABOUT DATA SOLUTIONS
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 www.altusgroup.com/datasolutions.
ABOUT ALTUS GROUP LIMITED
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: www.altusgroup.com.
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