Vancouver’s industry real estate market sealed 2020 on a promising note with $2.2 billion worth of transactions in Q4, and $7.9 billion during the entire year, according to a report from Altus Group.
Although that’s a 15% decrease from $9.3 billion in 2019—transactions also declined by 8% on an annual basis to 1,421 from 1,550—and the office and residential land sectors also endured declines, retail, industrial and multi-family actually increased.
“The retail sector had a surprisingly strong finish to the year, up 18% in total investment volume for 2020 compared to 2019. Two benchmark sales of multi-tenanted retail plazas in Q4-2020 pushed the total amount invested in the quarter to $276 million, a 50% increase from Q4 of 2019,” said the report by Curtis Taylor and Erika Siegert, both senior analysts at Altus Group. “Despite COVID-19 restrictions in place across the country, many retailers have remained open for business in British Columbia, which appears to have had a positive effect on this asset class.”
The industrial sector also had a strong developing and composed 22% of the total money volume, marking a 34% annual increase last year. What’s more, industrial sector availability monthly premiums are low, thanks to the steady dominance of e-commerce & food delivery businesses, seem to be driven demand for warehousing furthermore storage facilities.
The Home sector also proved heavy duty in 2020, according to Altus’s report.
“Rising apartment vacancy rates led to increased variety for multi-family assets the Vancouver market area, knowning that resulted in apartment sales exceeding the $1 billion mark located in 2020, marking a a third increase year-over-year. ”
Nonetheless , the office sector recorded the most important decline in 2020 of our asset classes. The 60% drop in sales resulted in transactions fell short of captal up to $1 billion for the first time in five a number of. Moreover, indecision about regardless of whether to return workers to sports offices has put up swing pressure on office openings rates and plunged stock in the sector.
Residential acquire investment also struggled, weakening by 32% last year so that you can $1. 5 billion—a 10-year low.