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Lower Mainland commercial real estate sales dipped in spring due to COVID-19

Citynews 1130 Vancouver

Last Updated Sep 28, 2020 at 11:54 am PDT

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Summary

Commercial real estate sales dipped by a quarter in the Lower Mainland this past spring due to COVID-19

Commercial sales totalled 324 in the second fiscal quarter of 2020, a 26.5 per cent decline from the year prior: REBGV

The value of office and retail sales saw a 59.4-per-cent increase, though

VANCOUVER (NEWS 1130) — Commercial real estate sales dipped by a quarter in the Lower Mainland this past spring as many businesses were forced to close to help curb the spread of COVID-19.

However, the value of some of those sales increased.

Commercial sales totalled 324 in the second fiscal quarter of 2020, a 26.5 per cent decline from the 441 during the same period the year prior, according to data from Commercial Edge, a system operated by the Real Estate Board of Greater Vancouver.

The total of those sales was $1.497 billion in the second quarter, a 1.1-per-cent decrease from $1.514 billion for the same time period in 2019.

“As COVID-19 forced an economic slowdown in the spring, sales activity in our commercial real estate market predictably followed,” Colette Gerber, REBGV chair, says in a release.

“The pandemic has caused employers to adapt to how they view and use commercial space. We’ll need more time and data throughout this year and beyond to fully understand how these changing perspectives are affecting our commercial real estate market.”

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According to the real estate board, the Lower Mainland saw 137 office and retail sales in spring, down 29.4 per cent from the 194 sales in the second quarter of 2019.

The dollar value of those sales was $612 million, though, a 59.4-per-cent increase from the $384 million in 2019.

The region had 76 commercial land sales in the second quarter, down 27.6 per cent from the 105 last year. The value of land sales was $582 million, down 21.3-per-cent decrease from $739 million in 2019.

Industrial sales were down 19.4 per cent, to 104 this year from 129 a year ago. The vales of those sales also decreased, to $265 million from $239 million.

The Lower Mainland also had seven multi-family land sales, down 46.2 per cent from the 13 in the second quarter of 2019. The dollar value of multi-family sales was $38 million, a 75-per-cent decrease from $152 million in the same period a year ago.