A study of Metro Vancouver commercial real estate bought after 1999 and sold as of mid-2013 shows that retail property returned a market leading 28.5 per cent through asset appreciation.
The RealNet Canada Inc. survey, released September 18, studied 337 specific properties sold between July 1, 2012 and June 30, 2013 and compared the sale prices on properties that were purchased after June 1999.
A total of $5.2 billion in transactions was represented in the annual Created Value Study of Metro Vancouver’s commercial real estate market, which together churned $224 million in added value.
Land sales dominate investment, representing 56 per cent of the total dollar volume, RealNet found.
While retail property led in appreciation, with a gain of $70 million, the multi-family apartment market was a close second, with a 24.6 per cent lift, or a total return of $60 million. The office market saw a 23.6 per cent increase in appreciation, worth $58 million, while the industrial market achieved a 23.3 per cent increase in value, worth $57 million.
Taken together, the commercial real estate market achieved a compound annual growth rate of 7.7 per cent since June of 1999.
