It was a Record Year for Greater Vancouver Commercial Properties.
Much of Western Canada continued to experience slower market activity this year as regional economies continue to recover from the downturn in the oil sector. In contract, BC saw prices increase significantly in the Greater Vancouver Commercial Properties market. In the first half of the year, the total dollar value of commercial real estate sales was $7.135 billion. This was an increase of a staggering 94% over 2015.
To learn more, read the 2016 RE/MAX Commercial Investor Report.
“Demand for commercial property in the Vancouver area remains very high and continues to be driven mainly by local investors,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Over the next several months, we may start to see more interest from foreign investors. As a result of the recent foreign buyer tax on residential properties, buyers who are interested in investing in Greater Vancouver may start to shift their focus to commercial properties.”
Impact of the Foreign Buyer’s Tax
Demand for Greater Vancouver Commercial Properties remains high, and could become even higher as a result of the recent implementation of a 15% foreign buyers tax on residential properties. This new tax could lead foreign investors to shift their focus from residential to commercial properties.
Projections for late 2016/Early 2017
Despite the high demand, activity in the later part of 2016 may slow due to a tighter inventory. This is because the desirable properties, such as those along major transit routes, are now starting to make up a smaller share of the remaining inventory. However, there is approximately 5.3 million square feet of property in the Lower Mainland that is under construction. This property is projected to come into the market within the next 18 months and is expected to increase the inventory available for 2017.
Does your team want more leads for 2017? A switch to RE/MAX can open doors for you as an agent or as a brokerage. Set up a meeting with one of our managing brokers today to learn more. We have offices across Greater Vancouver and the Lower Mainland.