Office product fuels biggest demand

Office space was the most sought-after commercial real estate product in Canada during the first half of this year.
According to Avison Young's National Fall Newsletter, office product amounted to $1.2 billion worth of investment between January to June. But that figure was down from $2.9 billion in 2008 as the Canadian market continued to feel the after-effects of the global financial meltdown and U.S. credit crash.
Vancouver's $506 million worth of investment accounted for most of the office dollar volume. But West Coast office investment was skewed heavily upwards by German investor Deka Immobilien GmbH's surprise unsolicited purchase of Bentall V in downtown Vancouver for $297 million. That deal still stands as the largest in Canada this year.
German investors were also active in other Canadian office markets, purchasing Phase II of the Bell Office campus in Montreal for $94 million and Stampede Station Phase I in Calgary for $74 million.
Meanwhile, overall investment in office, retail, industrial and multi-family properties fell by almost 60% to $3.4 billion from $8.4 billion.

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