Commercial real estate activity in Vancouver surges

It was the second best first quarter ever for Greater Vancouver commercial activity, according to RealNet Canada

Inc.

The research company said they were 299 deals worth more than a million in the first quarter for a total of $1.2-

billion. The only better first quarter was recorded in 2007.

“Although a decrease in pace was recorded in the first quarter [from the fourth of quarter of 2011], the results are

now consistently in line with results witnessed during 2006 and 2007,” said George Carras, president of RealNet.

“The Greater Vancouver market has now posted five quarters in excess of $1-billion, a run equalled only once

before.”

A bit chunk of the investment was just land with 52 per cent of all of the activity purchases for residential and

commercial land.

RealNet said the first quarter was the best ever for deals over $10-million in a quarter with the total of 24 beating

the record set in fourth quarter of 2009.

There were eight deals alone in residential land component worth more than $10-million, five of which were in the

city of Vancouver.

Some of the other big deals included the city of Surrey’s $22.14 million purchase of 58 acres of industrial land to

complete a subdivision it will market for sale. Canada Post also bought 1.78 acres of land in Vancouver for

$13.35-million that it plans to redevelop to accommodate a new state-of-the art mail processing centre.

On the office side, it recorded the largest climb in pure dollar numbers with six deals worth more than $10-million.

CPP Investment Board scored the biggest deal by acquiring a 50 per cent interest in two office towers for $115-

million. The total for all six deal was almost $200-million at average price of $496 per square foot and average cap

rate of 4.7 per cent.