The Lower Mainland’s commercial real estate market activity edged down in 2022’s second quarter from the brisk sales pace experienced at the start of the year.
There were 485 commercial real estate sales in the Lower Mainland in Q2 2022, a 34.3 per cent decrease from the 738 sales in Q2 2021, 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 in the Lower Mainland was $3.26 billion in Q2 2022, a 12.2 per cent decrease from $3.71 billion in Q2 2021.
“With inflationary pressures driving interest rates and borrowing costs higher, commercial activity across most market segments has slowed since the start of the year,” said Andrew Lis, REBGV’s director of economics and data analytics. “Land deals remain elevated relative to the last few years, which is unsurprising given the robust demand for new housing supply in the Lower Mainland.”
Q2 2022 activity by category
Office and retail: There were 143 office and retail sales in the Lower Mainland in Q2 2022, which is down 48.9 per cent from the 280 sales in Q2 2021. The dollar value of office and retail sales was $649 million in Q2 2022, a 25.4 per cent decrease from $870 million in Q2 2021. Industrial: There were 93 industrial land sales in the Lower Mainland in Q2 2022, which is a 49.2 per cent decrease from the 183 sales in Q2 2021. The dollar value of industrial sales was $542 million in Q2 2022, a 12 per cent increase from $484 million in Q2 2021.
Multi-family: There were 28 multi-family land sales in the Lower Mainland in Q2 2022, which is down 12.5 per cent from 32 sales in Q2 2021. The dollar value of multi-family sales was $404 million in Q2 2022, a 20.9 per cent decrease from $511 million in Q2 2021.
Land: There were 221 commercial land sales in Q2 2022, which is a 9.1 per cent decrease from the 243 land sales in Q2 2021. The dollar value of land sales was $1.67 billion in Q2 2022, a 9.9 per cent decrease from $1.85 billion in Q2 2021. ■
