Commercial First Blog

In the News - May 24, 2018

Grosvenor Ambleside's first building with flagship Earls restaurant now complete
Urbanized - Kenneth Chan shares photos and information regarding the construction of Grosvenor Ambleside mixed use building in West Vancouver.

B.C. Residential Tenancy Act changes give more rights to tenants.
Business in Vancouver - Landlords must now give tenants four months' notice for eviction in order to renovate. Informative article by Glen Korstorm.

Designs revealed for 52-storey towner at 'Granville Gateway'
Vancouver Courier - High-rise on east side of Granville Bridge designed to balance and echo Vancouver House. Article by Joannah Connolly.

BCREA Market Intelligence Report: The Economic Fallout of Housing Price Shocks.

Read the latest from BC Real Estate Association's Market Intelligence Report on the potential economic fallout of a relatively modest negative price shock to housing market.

Additional economic information is available on BCREA's Website.

For more information or to send questions or comments about the Market Intelligence Report, please contact:
Cameron Muir
Chief Economist
Direct: 604-742-2780
cmuir@bcrea.bc.ca

Brendon Ogmundson
Economist
Direct: 604-742-2796
bogmundson@bcrea.bc.ca

Source: BC Real Estate Association

Commercial Real Estate Sales Down, values up in 2017

Commercial real estate sales activity in the Lower Mainland declined from the record highs of one year ago and remained above the region’s long-term historical sales average in 2017.

There were 2,591 commercial real estate sales in the Lower Mainland in 2017, a 10.4 per cent decrease from the record 2,891 sales in 2016, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).

Commercial real estate sales in 2017 were 11.1 per cent above the region’s five-year sales average.
The total dollar value of commercial real estate sales in the Lower Mainland was $15.733 billion in 2017, a 14.5 per cent increase from $13.746 billion in 2016.

“While commercial sales declined from the record pace of 2016, the total dollar value of the activity continued to rise,” said Jill Oudil, REBGV president. “The strong economic and employment growth in our province last year helped drive our commercial real estate market in 2017.”

Activity by category in 2017
Land:
There were 1,061 commercial land sales in 2017, which is an 11.3 per cent decrease from the 1,196 land sales in 2016. The dollar value of land sales was $8.708 billion in 2017, a 15.5 per cent increase from $7.537 billion in 2016.

Office and Retail: There were 888 office and retail sales in the Lower Mainland in 2017, which is down 3.8 per cent from the 923 sales in 2016. The dollar value of office and retail sales was $4.464 billion in 2017, a 15 per cent increase from $3.883 billion in 2016.

Industrial: There were 527 industrial land sales in the Lower Mainland in 2017, which is down 15.8 per cent from the 626 sales in 2016. The dollar value of industrial sales was $1.238 billion in 2017, a three per cent increase from $1.202 billion in 2016.

Multi-Family: There were 115 multi-family land sales in the Lower Mainland in 2017, which is down 21.2 per cent over the 146 sales in 2016. The dollar value of multi-family sales was $1.324 billion in 2017, a 17.8 per cent increase from $1.124 billion in 2016.

Download the Commercial Edge Detailed Report.

Sales down, values up in Lower Mainland commercial real estate

Commercial real estate sales in the Lower Mainland have edged down from last year’s record highs while dollar values continued to rise in the third quarter (Q3) of 2017.

There were 652 commercial real estate sales in the Lower Mainland in Q3 2017, an 8.8 per cent decrease from the record 715 sales in Q3 2016, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).

The 652 sales in Q3 2017 are 10.7 per cent above the five-year Q3 sales average for the region (589).

The total dollar value of commercial real estate sales in the Lower Mainland reached $3.270 billion in Q3 2017, a 16.1 per cent increase from $2.815 billion in Q3 2016.

“While there have been fewer commercial sales this year compared to 2016, activity remains in line with the long-term average for the region,” Jill Oudil, REBGV president said. “On the pricing side, dollar values for commercial properties have climbed about 16 per cent in the last year. This growth can be attributed, in part, to the extended economic growth we’ve been experiencing across a variety of sectors in our province.”

Q3 2017 activity by category

Land: There were 278 commercial land sales in Q3 2017, which is a 4.5 per cent decrease from the 291 land sales in Q3 2016. The dollar value of land sales was $2.100 billion in Q3 2017, a 35.3 per cent increase from $1.552 billion in Q3 2016.

Office and Retail: There were 225 office and retail sales in the Lower Mainland in Q3 2017, which is up 0.9 per cent from the 223 sales in Q3 2016. The dollar value of office and retail sales was $578 million in Q3 2017, a 6.1 per cent increase from $545 million in Q3 2016.

Industrial: There were 128 industrial land sales in the Lower Mainland in Q3 2017, which is down 21 per cent over the 162 sales in Q3 2016. The dollar value of industrial sales was $400 million in Q3 2017, a 15 per cent increase from $348 million in Q3 2016.

Multi-Family: There were 21 multi-family land sales in the Lower Mainland in Q3 2017, which is down 46.2 per cent from 39 sales in Q3 2016. The dollar value of multi-family sales was $192 million in Q3 2017, a 48.1 per cent decrease from $371 million in Q3 2016.

Click here to download the full package.

Vancouver has Canada's highest commercial/residential tax ratio

Commercial property owners in Vancouver are paying a higher proportion of property taxes compared to residential property owners, according to a new report from the Altus Group.

The report analyzes commercial and residential tax rates in 10 Canadian cities.

Vancouver's commercial tax rate of $12.44 per $1,000 of assessed property value compared to the residential property tax rate of $2.55 per $1,000 of value results in a ratio of 4.87 – the highest in Canada.





Altus -prop-tax-study-chart-revised
tax-rate-ratio-commercial-residential
Taxes on a commercial property with an assessed value of $1 million would total $12,440. In comparison, taxes on a residential property worth $1 million would total $2,550, according to Bob Laurie, a commercial REALTOR® for forty years and the former co-chair of the Vancouver Tax Coalition.

Vancouver has a history of serious tax imbalances between residential and business property taxes explains Laurie.

“The bottom line is that businesses, especially small businesses which create jobs, have to move away when the commercial tax rate gets this high,” said Laurie.

Businesses can write off property taxes as a legitimate expense, so the commercial tax rate should be greater than the residential rate. But over the years, businesses have shouldered an unfair burden.

Learn more.
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