BC Industrial Real Estate Investment 3X Higher Than Office

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The amount of investment pouring into Metro Vancouver's industrial real estate sector shows that demand is still going strong, according to a report by Avison Young. AvisonYoung | realestate realestatenews industrialrealestate BC Vancouver

, and the amount of dollars being poured into industrial real estate shows that the demand is still strong.published by Avison Young this week, the industrial market totaled $1.95B in sales in 2022, while the retail market totaled $1.3B and the office market totaled $613M. That means the industrial market accounted for 50% of the total $3.9B in commercial real estate sales in BC last year, while the retail market accounted for 34% and the office market accounted for just 16%.

That deal was somewhat of an outlier, however, as only seven of the 47 transactions in the second half of the year were over $20M, after 23 of the 79 transactions in the first half surpassed that value. Avison Young also notes that the strata industrial market was also affected by last year’s interest rate increases, noting that 2022 saw a “record level of releases of units as interest rates rose.”After recording 20 transactions in the first half of the year, the office real estate market saw just six in the second half, with just one transaction over $5M in each of Vancouver, Richmond, Langley, Burnaby, New Westminster, and Coquitlam.

The year’s interest rate hikes had a much larger effect on the office real estate market, however, which was compounded by timid returns to office.

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