Vancouver’s commercial real estate investment market yielded $3.2 billion worth of deals during Q2 2018, according to CBRE Ltd.
This was propelled by activity involving Vancouver-based Pure Industrial Real Estate Trust, which – together with Canadian REIT – represented nearly half of the $16.5 billion national commercial investment volume in that quarter.
Other highlights included a growing number of suburban office deals, along with a major purchase of Investors Group’s nine office properties in Metro Vancouver.
The report followed another CBRE analysis released last month, which pointed at Vancouver as the strongest industrial real estate market across the globe.
The study attributed this to exceptional demand in the warehouse segment. The city’s lease rates grew by 29% year-over-year in Q1 2018, significantly above the worldwide average of 3% in that quarter, Bloomberg reported.
“Industrial previously was almost like a forgotten asset class,” CBRE Vancouver vice president and sales manager Jason Kiselbach said. “But we haven’t even scratched the surface of the demand that’s going to continue to grow and put more pressure on the industrial market.”
“These rising lease rates really speak to the strength of the economy — the growth in population, consumer spending.”
Overall commercial investment activity for the first half of 2018 was $5.6 billion, the market’s second highest volume since 2013.
Together, these developments have put the city on a smooth track towards a high-performance year.
“This is as busy as we’ve ever been in Vancouver,” CBRE vice chairman of capital markets Tony Quattrin told Business in Vancouver. “The pipeline continues to show signs this will be a record year.”
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