Vancouver, B.C. – Year-over-year commercial real estate investment in Vancouver has taken a dive.
According to Altus Group, a construction data and technology consulting company, today announced that its research shows commercial real estate sales transactions dipped 49 per cent in Q1 2019 when compared to Q1 2018.
Altus found that Q1 this year saw 322 sales transactions, totalling $1.58 billion making it the lowest in 18 quarters, since Q3 of 2014. The total number of transactions has also slowed from the pace of last year, a decline of 36 per cent from Q1 2018.
“the lowest transaction volume since Q1 2013 is reflective of the gap between vendor and purchaser price expectations, the lack of product and has resulted in decreased market activity,” said Paul Richter, director, data solutions at Altus Group.
Researchers noted that overall cap rates for the greater Vancouver area remained relatively stable in Q1. Office, retail and industrial each settled at 4.0 per cent, while the apartment market is predicted to somewhat decompress to an overall average of 3.5 per cent. Despite the dip, Vancouver and Toronto maintained their positions as the top preferred markets in the country for investors.