Metro Vancouver’s office market is “the strongest in Canada,” according to a new national survey, and a recent Burnaby purchase underlines the demand.
Concert’s CREC Commercial Fund LP has bought a fully leased, three-storey office building in the Brentwood neighbourhood of Burnaby. The 160,654-square-foot complex sold for $112.5 million, considered the highest price paid for a regional office property in the past year.
The sale of the building, which is fully leased to B.C.’s Provincial Health Services Authority (PHSA), was announced May 30. The building, at 1795 Willingdon Avenue, is nestled within a hub of new residential and commercial developments, including the Amazing Brentwood – one of British Columbia’s largest mixed-use retail and resident developments.
“This is Concert’s first acquisition in the Brentwood neighbourhood, and we’re excited to be part of this rapidly growing community as we further expand our commercial portfolio in B.C.,” said David Podmore, Concert’s president and CEO.
The property sits on a 2.58-acre lot within the core area of the Brentwood Town Centre Development Plan, which identifies the site for high-density, mixed use development consisting of residential and commercial uses.
The Brentwood Town Centre Skytrain Station is two blocks south of the property.
“We’re very pleased to acquire this premium office property in one of the fastest growing areas of B.C. With a long-term, stable, government tenant in PHSA, this acquisition will contribute stable returns to both our portfolio and to our pension fund and institutional investors,” said Andrew Tong, Concert’s chief investment officer and managing director of CREC Commercial Fund LP.
A national survey of commercial real estate released May 26 by Re/Max Commercial noted that Vancouver’s office market is currently the strongest in Canada. Metro Vancouver vacancy rates are trending down, sitting at 9.6 per cent in the first quarter of 2022 compared with 10 per cent during the same period in 2021, Re/Max found, noting that suburban markets continue to thrive.
Prior to the Brentwood sale, the highest prices paid for a Metro Vancouver office property since January 2021 was $103 million for a new 120,000-square-foot building at 1077 Great Northern Way in March 2021 and the $93 million paid for the 61,300-square-foot 815 Hornby Street tower in May of 2021, according to an Avison Young survey.
