Brokers sold $261 million worth of industrial land in the Fraser Valley in 2011. That is the highest amount since they achieved an all-time record of $284.2 million 2007, according to data from Avison Young released June 20.
Avison Young's report includes Surrey, Langley, Abbotsford, Chilliwack, Maple Ridge and Pitt Meadows as being part of the Fraser Valley for the purposes of its research.
The cities that most drove the region's success were:
- Surrey (140 transactions worth $163.2 million);
- Langley (27 transactions worth $39.6 million); and
- Abbotsford (22 transactions worth $22 million).
Optimism had been high for industrial sales in the Fraser Valley given Avison Young's announcement last month that $102.1 million worth of industrial property changed hands in 50 transactions in the City of Vancouver in 2011.
(See "Vancouver industrial real estate market cautiously optimistic" - May 4, 2012.)
That is the strongest dollar volume recorded since 2006 ($102.9 million) and highest number of transactions since 2007 (59).
Small-bay strata unit sales continue to form a significant portion of Fraser Valley industrial transactions, Avison Young reported.
Between September 2011 and May 2012, only two industrial land sales in Surrey topped $5 million, while there were nine transactions between $1 million and $5 million.
Almost three-quarters of all deals (54 of 74) in Surrey between September and May were for less than $500,000.
While expensive and large warehouses do not flip frequently, there is a trend toward larger ones being built. (See "Metro Vancouver warehouse world booming" - May 3, 2011.)
