Despite the slowdown in commercial real estate throughout Greater Vancouver this year, one asset class that has performed well is Industrial sales.
During the first half of 2019 there were 212 transactions, up 11% and 13% from the first halves of 2017 and 2018 respectively. Leading the way were Richmond (up 60% from last year), Vancouver (up 27%) and Surrey (up 25%). On the volume side, this year’s total of $567,434,064 was up 7% from 2017, but down 14% from 2018’s high water mark. Along these lines, North Vancouver’s volume was up 66%, Vancouver’s was up 46% and Surrey’s was down 1% from the first half of last year.
Dmytro Chernysh, a commercial REALTOR® with Klein Group, notes that there is currently a very high demand for the Industrial asset class.
“Metro Vancouver industrial vacancy rate is currently about 1.2%. In other words, there’s a huge shortage of space. Existing owners are often looking to expand their businesses, while many who are currently leasing space want to buy. The resulting demand is pushing both sale prices and lease rates up, which in turn can make it a very lucrative investment option.”