Metro land values double as commercial sales dip

Value up 107% in 2020’s third quarter compared with the same quarter in 2019

A half-acre industrial site in New Westminster sold for $2.07 million in November | Macdonald Commercial

While Metro Vancouver commercial real estate sales declined in 2020’s third quarter, the dollar volume of the deals increased, led by a 106.6% surge in land prices, according to the Real Estate Board of Greater Vancouver’s (REBGV) Commercial Edge report, which tracks Lower Mainland transactions through B.C.’s Land Title and Survey Authority.

There were 93 commercial land sales in Q3 2020, which is a 20.5% decrease from the 117 in 2019’s third quarter. The dollar value of land sales, however, soared to $1.73 billion, a 106.6% increase from $838 million in Q3 2019.

Data shows that more than a quarter of the land sales were parcels valued at over $10 million.

The 387 commercial real estate sales in the Lower Mainland 2020’s third quarter represented an 8.9% decrease from the 425 sales in Q3 2019, but the total dollar value of sales hit $2.63 billion, up 31.7% from the same period a year earlier.

“Businesses across all sectors have been adapting their operations during this pandemic,” said REBGV chairwoman Colette Gerber. “With the intensive move to a remote workforce, demand for commercial space declined in the third quarter of 2020.”

Here is a breakdown of third-quarter 2020 Lower Mainland commercial and industrial sales.

Office and retail:  165, which is down 1.8% from the 168 in Q3 2019. The dollar value of office and retail sales was $342 million in Q3 2020, a 26.1% decrease from $463 million in Q3 2019.

Industrial: 108, which is a 12.2% decrease from the 123 sales in Q3 2019. The dollar value of industrial sales was $257 million in Q3 2020, a 37.6% decrease from $412 million in Q3 2019.

Multi-family:  21, which is up 23.5% from 17 sales in Q3 2019. The dollar value was $296 million in Q3 2020, a 4.9% increase from $282 million in Q3 2019. •