Strong sales seen in the Lower Mainland’s commercial real estate market carried into the first quarter (Q1) of 2021, with office/retail and multi-family transactions leading the curve.
Sales of commercial land dipped, however, and the dollar volume for land transactions fell 35 per cent from a year earlier.
There were 576 commercial real estate sales in the Lower Mainland in the first three months, a 46.9 per cent increase from the 392 sales in Q1 2020, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).
The total dollar value of commercial real estate sales in the Lower Mainland was $2.6 billion in Q1 2021, a 10 per cent increase from $2.41 billion in Q1 2020.
"Activity in the commercial real estate market has followed a similar pattern to what we’ve seen in the residential market throughout most of the pandemic," Keith Stewart, REBGV economist said, noting there is “more confidence” in the market under COVID-19 safety protocols.
Q1 2021 activity by category:
Land: There were 110 commercial land sales in Q1 2021, which is a 0.9 per cent decrease from the 111 land sales in Q1 2020. The dollar value of land sales was $684 million in Q1 2021, a 35 per cent decrease from $1.05 billion in Q1 2020.
Office and retail: There were 229 office and retail sales in the Lower Mainland in Q1 2021, which is up 62.4 per cent from the 141 sales in Q1 2020. The dollar value of office and retail sales was $820 million in Q1 2021, a 136.1 per cent increase from $347 million in Q1 2020.
Industrial: There were 196 industrial land sales in the Lower Mainland in Q1 2021, which is a 58.1 per cent increase from the 124 sales in Q1 2020. The dollar value of industrial sales was $664 million in Q1 2021, a 78 per cent increase from $373 million in Q1 2020.
Multi-Family: There were 41 multi-family land sales in the Lower Mainland in Q1 2021, which was up 156.3 per cent from 16 sales in Q1 2020. The dollar value of multi-family sales was $487 million in the first quarter, a 23.9 per cent decrease from $640 million in Q1 2020.
