A near-record number of transactions helped propel B.C. commercial real estate in 2013’s first half, according to an Avison Young report released September 11.
The period’s 58 transactions was the second highest number of transactions recorded in a six-month period since 2002, according to the report.
The $724 million value of those transactions, however, was 48% lower than the $1.39 billion in commercial real-estate transactions in the province in 2012’s first half.
The report cited the lack of a blockbuster deal, including the lack of a single-office transaction in downtown Vancouver, as a main cause for the low dollar volume.
“The $66 million sale of Discovery Parks Vancouver was both the largest office and overall transaction recorded in the first half of 2013,” the report noted.
Fear of future interest hikes has prevented real estate investment trusts (REITs) from making transactions, according to the report. Transactions by REITs are often larger than private ones.
Indeed, 79% of the transactions and 62% of the dollar volume invested in the first half of 2013 came from private companies.
Retail property transactions accounted for the largest dollar volume in the first six months of 2013 (40%), slightly edging out industrial assets (37%) but easily outperforming office property investment (23%).
