Vancouver Investment Transaction Stats – Q1 2018
Vancouver’s Commercial Real Estate Market Takes a Breath After Historic 2017
Q1 2018 registered a total of 480 sales transactions over $1 million, representing a total value of $2.9 billion
VANCOUVER ‒ Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced Q1 2018 results for commercial real estate investment in the Vancouver market area. Overall, investment volumes were down 24% while deal velocity slowed by 7% when compared to the same quarter in 2017.
Source: Altus Group
Land markets continue to attract the majority of investment in the Vancouver market area. The residential land market recorded $1.14 billion in total investment in the first quarter; ICI land posted $530.3 million. Total investment in the land sectors accounted for 57% of the entire market and included unique acquisitions by investors and developers that illustrate a healthy appetite for development sites remains despite obstacles in both the acquisition and redevelopment phases.
The most significant residential land transactions were in Vancouver, Coquitlam and North Vancouver, each high density uses. Two of these deals were residential strata dissolutions; a West End, 1970s era, 53 unit building on 0.496 acres, for $52 million, and a North Vancouver, 1970s era, 90 unit building on 2.47 acres, for $31 million. Each of these strata corporations were wound-up and dissolved in order to facilitate the transactions.
The top transactions in the ICI land sector included Vancouver Fraser Port Authority acquiring a 159-acre narrow strip of land along Deltaport Way leading to the Deltaport Terminal for $63 million, a 6.2 acre site at 20th Avenue and 165A Street acquired by the Surrey School Board for $28.8 million and a private investor that acquired Mylora Golf Course in Richmond, a 28.2 acre golf course in the ALR for $22.5 million.
The retail and hotel markets were the only two sectors to record increases in overall investment from the previous quarter, each as the result of a portfolio of hotel and casino properties that traded between Gateway Casinos and Mesirow Financial, a foreign investor. The overall portfolio traded for $500.88 million and included properties in Burnaby, New Westminster and the City of Langley.
“While overall investment levels are down from 2017, the first quarter represents a top ten quarter historically in terms of overall investment,” noted Paul Richter, Director, Data Solutions at Altus Group. “Private, institutional, and government purchasers were all active in the first quarter, an indication that confidence in the market remains strong, and from an array of stakeholders.”
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 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
(416) 641 – 9787