The steam is evaporating from B.C.'s hot commercial real estate market and will continue to do so for the rest of the year, according to Avison Young's investment review report.
The global devaluation of assets and weakening investor confidence is projected to continue to have an impact on B.C.'s commercial real estate sector by slowing executive decision-making as the price expectation gap between buyers and sellers continues to narrow.
The report noted that many investors are sitting on the sidelines waiting for clarity in when the economy will begin to improve, although many see the next 12 to 18 months as a great buying opportunity.
The report suggested sales will likely pick up in 2009's second half with an expected improvement in the credit markets and as more properties become available throughout the year.
The number of transactions for the second half of 2008 fell to 30 from 38 in the first half of last year. But the total value of sales rose to $734 million from $535 million. While that value was higher in the second half, many of the deals were negotiated in the first half of 2008, before the financial crisis led to the bankruptcy of Lehman Bros. in September.