Vancouver's commercial market continues slowing down

Vancouver's commercial market continues slowing down

Vancouver

Activity involving Vancouver’s commercial assets has lost pace for the third straight year, according to the Real Estate Board of Greater Vancouver (REBGV).

A total of 1,538 commercial sales transpired in 2019, representing a 32.8% decline from 2018 and a 41.5% drop from 2017. This was significantly lower than the current annual record of 2,896 sales in 2016.

Dollar value had a more precipitous 56.7% year-over-year drop in 2019, ending up at $6.86 billion. This was less than half the $16.6 billion peak reached in 2017, CBC.ca reported.

Last year saw 400 commercial land transactions (down by 54% annually) with a dollar value of $3.24 billion (down by 61%). Multi-family land had a 50% shrinkage in sales, while industrial land went relatively unscathed with just a 6% drop.

The same time frame had 624 sales of office and retail assets (down by 24%) with a total value of $1.6 billion (significantly down by 65.8%).

However, while these trends mirrored those seen in the struggling housing market, the REBGV said that it’s too early to predict the extent of the COVID-19 pandemic’s effect on the commercial sector.