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Land sales topped $7 billion to lead CRE action in 2022

Total commercial real estate volumes – at $12.8 billion across the Lower Mainland – were down from a year earlier but higher than the five-year average
Western Investor staff
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A Port Coquitam 5-acre industrial site sold for $10.6 million in May 2022. |Lee & Associates

Sales activity and dollar volumes in the Lower Mainland’s commercial real estate market held steady in 2022, despite the highest borrowing costs seen in at least 10 years.

There were 2,116 commercial real estate sales in the Lower Mainland in 2022, a 22.9 per cent decrease from 2,743 sales in 2021, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).

This is about a 1.6 per cent decrease from the five-year average for sales (2,082) in the region. 

The total dollar value of commercial real estate sales in the Lower Mainland was $12.88 billion in 2022, a 16.5 per cent decrease from $15.42 billion in 2021. This is a 6 per cent increase from the five-year average for dollar values.

“With the Bank of Canada raising the policy rate from 0.25 per cent to 4.5 per cent in a little under one year, the strong sales volumes seen in the Lower Mainland last year really speak to the resilience of our market,” Andrew Lis, REBGV’s Director of Economics and Data Analytics, said. “While sales were down in the second half of 2022 relative to the first half, the figures were roughly in line with what we’ve seen historically, when our market wasn’t facing down challenging headwinds from much higher borrowing costs, and the looming possibility of an economic recession.”

Activity by category

Land: There were 718 commercial land sales in 2022,  a 14.4 per cent decrease from the 839 land sales in 2021. The dollar value of land sales was $7.31 billion in 2022, down 5.5 per cent from $7.74 billion in 2021.

Office and retail: There were 804 office and retail sales in the Lower Mainland in 2022, which is down 23.3 per cent from the 1,048 sales in 2021. The dollar value of office and retail sales was $2.33 billion in 2022, a 26 per cent decrease from $3.15 billion in 2021.

Industrial: There were 500 industrial land sales in the Lower Mainland in 2022, which is a 30 per cent decrease from the 711 sales in 2021. The dollar value of industrial sales was $1.86 billion in 2022, a 23.9 per cent decrease from $2.44 billion in 2021.

Multi-family: There were 94 multi-family land sales in the Lower Mainland in 2022, which is down 35.2 per cent from 145 sales in 2021. The dollar value of multi-family sales was $1.3 billion in 2022, a 34.1 per cent decrease from $2.079 billion in 2021.