Metro Vancouver commercial real estate sales hit a fresh record this year, according RealNet Canada Inc. which released historical data showing how strong real estate investments have become.
RealNet told a Vancouver real estate conference this month that $5.71 billion in commercial sales, totaling 2,487 transactions were made in the 12 months ending June 30. (RealNet counts sales of more than $250,000).
Land accounted for 55 per cent of all commercial real estate sales in the past year, with $3.16 billion spent buying it, five times more than in any other commercial sector
Other highlights from the RealNet study,
• Over the past five years, Greater Vancouver commercial real estate prices are up by 58 per cent. Residential real estate prices have increased 13.4 per cent in the same time period.
• Commercial real estate prices continue to climb, while Greater Vancouver residential prices are down 0.5 per cent in the past year.
• Commercial real estate prices have been growing at an annual compound growth rate of 9.4 per cent
• Over the last five years, retail property values grew 10.5 per cent, per year, Office properties grew 9.1 per cent; industrial 8.8 per cent; and rental apartment buildings by 8.3 per cent.
•The fastest growth rate in all categories was in the mid-priced properties – those valued at between $3 million and $10 million.
• The value of retail properties in the mid-priced category grew a healthy 16.1 per cent annually for the past five years
• The slowest price growth came in commercial properties worth over $10 million, which grew at an annual rate of 5 per cent.
For the complete RealNet release, visit www.realnet.ca
