Metro Vancouver land sales surge in second quarter

130% year-over-year increase a key driver in commercial real estate transaction values

A 12.5-acre commercial site in Chilliwack sold in August for $22.2 million | CBRE Ltd.

Lower Mainland’s surging commercial real estate market continued at a blistering pace in 2021’s second quarter.

There were 726 commercial real estate sales in the region, a 114.8% increase from the 338 sales in Q2 2020, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).

The total dollar value of commercial real estate sales was $3.63 billion in Q2 2021, a 130.4% increase from $1.58 billion in Q2 2020.

“Commercial real estate activity continued to strengthen in the second quarter of 2021, with sales reaching levels that we haven’t seen in four years,” said REBGV economist Keith Stewart. “Land acquisition is particularly strong as investors are demonstrating confidence in new development potential in our region.”

Lower Mainland Q2 2021 real estate activity by category:

•Land: There were 236 commercial land sales, which is a 181% increase from 84 in Q2 2020. The dollar value of land sales was $1.78 billion, a 181.5% increase from $634 million in Q2 2020.

•Office and retail: There were 278 office and retail sales, which is up 100% from 139 sales in Q2 2020. The dollar value of office and retail sales was $859 million, a 39.7% increase from $615 million in Q2 2020.

•Industrial: There were 180 industrial land sales, which is a 71.4% increase from 105 sales in Q2 2020. The dollar value of industrial sales was $480 million, a 79.8% increase from $267 million in Q2 2020.

•Multi-family: There were 32 multi-family land sales, which is up 220% from 10 in Q2 2020. The dollar value was $511 million, a 724.2% increase from $62 million in Q2 2020. •