VANCOUVER, British Columbia, Canada, Aug. 29, 2011 /CNW/ - The British Columbia commercial real estate investment market maintained its traditional strength in the first half of 2011 after reaching record deal and dollar volume highs in 2010. During the first six months of 2011, $594 million was invested in 36 transactions involving office, industrial and retail assets in BC.
A lack of supply hampered deal and dollar volumes in all asset classes, which led to lower deal and dollar volumes when compared with the record-setting $1.026 billion in investment sales activity by the mid-point of 2010.
The low cost of debt continued to drive down yields with private investors representing the majority of both vendors and purchasers. Industrial and office product captured 75% of the dollar volume invested by private buyers. REITs, which were the second most active purchasers of commercial real estate assets in the first half of the year, spread their investments almost equally among office, retail and industrial assets.
These are some of the key trends noted in Avison Young's Mid-Year 2011 British Columbia Real Estate Investment Review, released today. The semi-annual report tracks office, industrial and retail investment sales in BC greater than $5 million.
"It is a perfect storm for vendors in the marketplace right now," comments Michael Keenan (top right photo), Senior Vice-President and Managing Director of Avison Young's Vancouver office.
"With a stable economy and banking system inspiring investor confidence, historic low interest rates, a lack of available quality commercial real estate, and an inordinately high demand for commercial product that doesn't exist, the combination of those factors has created an aggressive pricing environment and downward pressure on yields.
Vendors, should they choose to dispose of assets, will find buyers of all types working to meet their pricing expectations."
For a complete copy of the company’s news release, comment and photos, please contact::
Sherry Quan, National Director of Communications & Media Relations, Avison Young: (604) 647-5098; or cell: (604) 726-0959
Andrew Petrozzi, Research Manager, Vancouver: 604) 646-8392
Michael Keenan, Senior Vice-President and Managing Director, Vancouver: (604) 647-5081
Michael Gill, Principal, Avison Young: (604) 647-5067
Rob Gritten, Principal, Avison Young: (604) 647-5063
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