While total commercial real estate sales declined in the third quarter (Q3) of 2020, the dollar volume increased, led by a 106.6 per cent surge in land prices, according to the Commercial Edge report from the Real Estate Board of Greater Vancouver (REBGV), which tracks Lower Mainland transactions through the Land Title and Survey Authority of British Columbia
There were 93 commercial land sales in Q3 2020, which is down 20.5 per cent from the 117 land sales in Q3 2019. The dollar value of land sales, however, soared to $1.732 billion, a 106.6 per cent increase from $838 million in Q3 2019.
Data shows that more than a quarter of the commercial/industrial land sales were parcels valued at more than $10 million.
The total of 387 commercial real estate sales in the Lower Mainland in the third quarter of 2020 represented an 8.9 per cent decrease over the 425 sales in Q3 2019, but the total dollar value of sales hit $2.628 billion, up 31.7 per cent from the same period a year earlier.
“Businesses across all sectors have been adapting their operations during this pandemic. With the intensive move to a remote workforce, demand for commercial space declined in the third quarter of 2020,” said Colette Gerber, REBGV Chair.
Here is a breakdown of commercial and industrial sales in Q3 2020:
Land: There were 93 commercial land sales in Q3 2020, which is a 20.5 per cent decrease from the 117 land sales in Q3 2019. The dollar value of land sales was $1.732 billion in Q3 2020, a 106.6 per cent increase from $838 million in Q3 2019.
Office and retail: There were 165 office and retail sales in the Lower Mainland in Q3 2020, which is down 1.8 per cent from the 168 sales in Q3 2019. The dollar value of office and retail sales was $342 million in Q3 2020, a 26.1 per cent decrease from $463 million in Q3 2019.
Industrial: There were 108 industrial land sales in the Lower Mainland in Q3 2020, which is a 12.2 per cent decrease from the 123 sales in Q3 2019. The dollar value of industrial sales was $257 million in Q3 2020, a 37.6 per cent decrease from $412 million in Q3 2019.
Multi-family: There were 21 multi-family land sales in the Lower Mainland in Q3 2020, which is up 23.5 per cent from 17 sales in Q3 2019. The dollar value of multi-family sales was $296 million in Q3 2020, a 4.9 per cent increase from $282 million in Q3 2019.
