The lack of commercial real estate inventory in Vancouver has remained a hot topic for years, prompting many of the city’s established developers to seek properties outside B.C. With competition from offshore markets coupled with limited square footage to choose from, prices have reached record highs -- making now the perfect time for owners to sell.
The Molson Brewery Source: Google Street Maps
This past week, The Globe and Mail reported that owners of coveted commercial real estate in the city centre are taking advantage of the sellers’ market. Among them is The Molson brewery located beside the Burrard Bridge, which was assessed at $34 million. In addition, Ivanhoé Cambridge has also put all four Bentall office towers situated in the core of the city’s business district up for grabs. The price tag? A cool $810 million. All of these properties, however, are expected to sell well beyond the listing prices.
Bentall Centre Source: Bentall Kennedy
With a reputation as a ‘safe’ market, our city is a sought-after investment opportunity for those with deep pockets. As we’ve blogged before, in the past three years more than 1.3 million square feet of office properties were completed, and 3 million more are in the pipeline. The influx of properties available has left the highest vacancy levels in over a decade, which may explain why owners have decided to take advantage of selling at what might be a peak in the commercial real estate market.
What do you think? Join the discussion at our next Breakfast Event on Thursday, October 29th!