The Lower Mainland’s commercial real estate market saw a steady pace of sales in the first quarter (Q1) of 2022, with volume outperforming the near-record action of a year earlier.
There were 595 commercial real estate sales in the Lower Mainland in Q1 2022, a 1 per cent decrease from the 601 sales in Q1 2021. However, the total dollar value was $3.71 billion in Q1 2022, a 32.9 per cent increase from $2.79 billion in Q1 2021.
The data is from Commercial Edge, a system operated by the Real Estate Board of Greater Vancouver (REBGV), which tracks Lower Mainland transactions through the Land Title and Survey Authority of British Columbia.
“Raw land was the most popular and expensive commercial category driving activity to begin the year as companies look for space to expand,” said. Daniel John, chair, REBGV.
“Going forward, we’ll need to see how the rising interest rates and inflationary pressure that we’re experiencing today will impact our commercial real estate market for the balance of 2022,” John added.
Q1 2022 activity by category
Land: There were 206 commercial land sales in Q1 2022, a 63.5 per cent increase from the 126 land sales in Q1 2021. The dollar value of land sales was $2.085 billion in Q1 2022, a 177.5 per cent increase n Q1 2021, and equal to more than half of the total commercial real estate volume.
Office and retail: There were 219 office and retail sales in the Lower Mainland in Q1 2022, which is down 6.8 per cent from the 235 sales in Q1 2021. The dollar value of office and retail sales was $624 million in Q1 2022, a 29.7 per cent decrease from Q1 2021.
Industrial: There were 141 industrial land sales in the Lower Mainland in Q1 2022, which is a 28.8 per cent decrease from the 198 sales in Q1 2021. The dollar value of industrial sales was $673 million in Q1 2022, a 2 per cent increase from $660 million in Q1 2021.
Multi-family: There were 29 multi-family land sales in the Lower Mainland in Q1 2022, which is down 31 per cent from 42 sales in Q1 2021. The dollar value of multi-family sales was $336 million in Q1 2022, a 32.7 per cent decrease from $499 million in Q1 2021.