Commercial real estate sales decline in the second quarter
As the COVID 19 pandemic intensified in the second quarter of 2020 (Q2), the Lower Mainland’s commercial real estate market experienced fewer sales while dollar values fluctuated depending on property type.Commercial real estate sales totalled 324 in the Lower Mainland in Q2 2020, a 26.5 per cent decline from the 441 sales in Q2 2019, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV).
The total dollar value of commercial real estate sales in the Lower Mainland was $1.497 billion in Q2 2020, a 1.1 per cent decrease from $1.514 billion in Q2 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 said. “The pandemic has caused employers to adapt 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.”
Q2 2020 activity by category
Land: There were 76 commercial land sales in Q2 2020, which is a 27.6 per cent decrease from the 105 land sales in Q2 2019. The dollar value of land sales was $582 million in Q2 2020, a 21.3 per cent decrease from $739 million in Q2 2019.
Office and Retail: There were 137 office and retail sales in the Lower Mainland in Q2 2020, which is down 29.4 per cent from the 194 sales in Q2 2019. The dollar value of office and retail sales was $612 million in Q2 2020, a 59.4 per cent increase from $384 million in Q2 2019.
Industrial: There were 104 industrial land sales in the Lower Mainland in Q2 2020, which is a 19.4 per cent decrease from the 129 sales in Q2 2019. The dollar value of industrial sales was $265 million in Q2 2020, a 10.9 per cent increase from $239 million in Q2 2019.
Multi-Family: There were seven multi-family land sales in the Lower Mainland in Q2 2020, which is down 46.2 per cent from 13 sales in Q2 2019. The dollar value of multi-family sales was $38 million in Q2 2020, a 75 per cent decrease from $152 million in Q2 2019.
Office and Retail: There were 137 office and retail sales in the Lower Mainland in Q2 2020, which is down 29.4 per cent from the 194 sales in Q2 2019. The dollar value of office and retail sales was $612 million in Q2 2020, a 59.4 per cent increase from $384 million in Q2 2019.
Industrial: There were 104 industrial land sales in the Lower Mainland in Q2 2020, which is a 19.4 per cent decrease from the 129 sales in Q2 2019. The dollar value of industrial sales was $265 million in Q2 2020, a 10.9 per cent increase from $239 million in Q2 2019.
Multi-Family: There were seven multi-family land sales in the Lower Mainland in Q2 2020, which is down 46.2 per cent from 13 sales in Q2 2019. The dollar value of multi-family sales was $38 million in Q2 2020, a 75 per cent decrease from $152 million in Q2 2019.
