By Altus Group | May 31, 2017

Commercial Real Estate Investment in Vancouver Posts a Strong Q1 2017

Q1 2017 saw a total of 498 investment property sales transactions over $1 million, representing a total investment value of $3.4 billion

VANCOUVER ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced results for the first quarter of 2017 commercial real estate investment in the Vancouver market area. Total investment reached $3.4 billion, an increase of 32% from the previous quarter. This was the highest first quarter recorded by Altus Group and the second highest quarter overall, with the previous high being Q2 2016.

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

Source:  Altus Group 

The first quarter surge in activity can be contributed to the top four transactions ranging from $115 million to $480 million. The combined value of the four transactions was $935.6 million, and includes:

  • Oakridge Centre, Vancouver: a 50% interest of $480,661,162. The remaining 50% was acquired by the same Purchaser via share sale.
  • Waterfront Centre, Vancouver: a 50% portion of a larger portfolio of which this property traded via asset sale; $182,450,000 (Cadillac Fairview – OPB/WSIB Greater Vancouver Office & Retail Portfolio 2017).
  • Granville Square, Vancouver: a 50% portion of a larger portfolio of which this property traded via asset sale; $157,500,000 (Cadillac Fairview – OPB/WSIB Greater Vancouver Office & Retail Portfolio 2017).
  • Arbutus Manor, Vancouver: a retirement home, classified as Residential Land; 3.93 acres, $115,000,000.

The number of deals in Q1 2017 increased by 8% to 498 transactions from the previous quarter (462), but is off the peak market numbers measured in Q2 2016 by 42% (860). The last two quarters each were under 500 transactions, after a consecutive five quarters of over 500 transactions per quarter, the only five quarters that ever recorded in excess of 500 transactions.

Pie chart showing Vancouver Q1 2017 Property Transactions, total dollar volume by sector.

Source:  Altus Group 

Retail and office investment reached record levels in Q1 2017. However, residential land was once again the top sector, despite dollar volumes being down from both the previous quarter and a year earlier.

“A handful of high value/high quality assets took some of the spotlight off of the pure land markets in the first quarter,” noted Paul Richter, Director, Data Solutions, Altus Group. “The interest in land for future residential development, however, remains relatively strong.”

 

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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 shares are traded on the TSX under the symbol AIF.

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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