The city magnetized $3.2 billion in the last quarter alone, according to CBRE
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A B.C.-based commercial investment trust provided a major contribution to overall Canadian investment in this segment during the second quarter of 2018, according to CBRE Ltd.
Vancouver-based Pure Industrial Real Estate Trust, along with Canadian REIT, together accounted for nearly half of the $16.5 billion national commercial investment volume in Q2 2018.
The city itself magnetized $3.2 billion worth of commercial deals in the quarter, which placed the market well on track for a fantastic year, Business in Vancouver reported.
“This is as busy as we’ve ever been in Vancouver,” CBRE vice chairman of capital markets Tony Quattrin said. “The pipeline continues to show signs this will be a record year.”
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Among the highlights was a purchase of Investors Group’s nine office properties in Metro Vancouver, along with a growing number of deals in the suburban office sector.
Vancouver’s investment activity for the first half of 2018 stood at $5.6 billion, the market’s second highest volume since 2013.
Another CBRE report released last month showed that Vancouver was the strongest industrial real estate market globally, due in large part to the exceptional performance of the warehouse segment.
The city’s lease rates grew by 29% year-over-year in Q1 2018, significantly above the worldwide average of 3% in that quarter, Bloomberg reported.
“Industrial previously was almost like a forgotten asset class,” CBRE Vancouver vice president and sales manager Jason Kiselbach said. “But we haven’t even scratched the surface of the demand that’s going to continue to grow and put more pressure on the industrial market.”
“These rising lease rates really speak to the strength of the economy -- the growth in population, consumer spending.”
