With “continued uncertainties amid the second wave of rising case numbers,” investment in commercial real estate has slowed in Vancouver, Altus said. There were “more restrictive measures across the city, and with it remained a hesitance amongst investors.”
Commercial real estate sales in the third quarter posted the lowest total since the second quarter of 2014, but investor interest in industrial and multi-family buildings remained strong, with year-to-date volume in both these categories increasing almost 16 per cent compared to last year. Residential land deals are also under pressure, with year-to-date totals down by 24 per cent compared to 2019 as many developers seem more comfortable holding cash than land.
The largest industrial sale involved a 200,000-plus-square-foot, Port Coquitlam warehouse and distribution centre on Coast Meridian Road. It was sold in a share sale deal for a reported $51.3 million.