Brokers looking to crack into the commercial market may want to keep an eye on this one budding area in Canada where sales of commercial properties in excess of $5 million have surged, according to a recent report.
Avison Young’s mid-year report on commercial real estate in British Columbia shows that a total of 56 transactions over $5 million accounted for $852 million in sales – the third highest figure since 2002.
Still, despite the impressive sales figures, Vancouver still has a ways to go before becoming a commercial behemoth like Toronto.
“There are really small pickings, so it’s difficult to get into this market; so when you’re in the market … you’re very reluctant to let it go because it’s so difficult to get back in,”Michael Gill, Avison Young’s Vancouver principal told the Vancouver Sun. “It’s not like we have a hundred office buildings like you do in Toronto.”
CMP’s August issue featured the top commercial brokers in Canada and the broker who took home top honours is none other than Vancouver’s own David William Beckingham with Dominion Lending Centres
Commercial Capital Inc.
Beckingham funded 42 for a total of $209,222,000 in 2013 – proving that it isn’t just commercial properties in excess of $5 million can be hand in Vancouver.
And for his part, Beckingham believes the commercial broker industry in Canada will only grow.
“Personally, I see the commercial brokerage industry expanding. More and more investment monies are flowing from the stock market into the commercial real estate market,” Beckingham said. “This market transition will only increase the volume of business in the commercial real estate field because investors are increasingly interested in the security and stability of a real estate investment over a stock investment.
“This transition will only increase the need for commercial mortgages and commercial mortgage brokers alike.”