A Robust Land Market Carries an Already Strong Vancouver Commercial Real Estate Market to Record Levels in 2016

2016 saw a total of 2,639 investment property sales transactions over $1 million, representing a total investment value of $12.4 billion

VANCOUVER ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the cumulative results for 2016 commercial real estate investment in the Vancouver market area. Investment volumes of $2.6 billion occurred in the fourth quarter of 2016, bringing the annual total to $12.4 billion. This represents a 54% increase from the total recorded in 2015, and more than twice the 10 year average.

 

Graph showing Vancouver property transaction dollar volume and number of transactions for all sectors by quarter from Q1 2007 to Q4 2016.

Source:  Altus Group (Q4 2016)

In 2016, the Residential Land market recorded the greatest gain in overall investment volumes, more than doubling the volume in 2015. Investment in this sector increased just over $6B and accounted for almost half of the total investment volume in the market. Several large transactions were noted on the west side of Vancouver including:

  • Oakridge Transit Centre lands, Vancouver, 13.8 acres, $440 million, December 2016
  • 4125-4175 West 8th Avenue, Vancouver, 0.72 acres, $240 million, February 2016
  • 650 West 57th Avenue, Vancouver, 19.58 acres, $217 million, March 2016

Interestingly, all three development sites were acquired from public sector owners.

The ICI Land and Industrial markets each recorded a 39% gain from 2015. The Apartment market posted a 13% gain, while Retail and Office sectors had similar showings to 2015 (with a 4% gain and a 1.5% decline, respectively).

Transaction volumes slowed in the second half of 2016, after hitting a historical peak in terms of dollar volume in the second quarter. However, investment activity in the second half of 2016 remained well above year-earlier levels, resulting in the strongest third and fourth quarters on record.

Graph showing Vancouver property transaction dollar volume and number of transactions for all sectors by quarter.

Source:  Altus Group (Q4 2016)

“The first six months of 2017 will be a defining period for the direction of the Greater Vancouver commercial real estate market. The year closed out with a number of transactions that are indicative of strong investor confidence; however, the quarter-over-quarter declines of the past six months suggest 2016 may have been the peak in investment volumes” noted Paul Richter, Director, Data Solutions, Altus Group.

 

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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 independent advisory services, software and data solutions 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 market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 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 securities are traded on the TSX under the symbols AIF and AIF.DB.A.

For more information on Altus Group, please visit: www.altusgroup.com.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Elizabeth Lambe
Manager, Communications
Altus Group
(416) 641 – 9787
elizabeth.lambe@altusgroup.com

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