Vancouver, BC – British Columbia commercial real estate investment activity shifted downward in the first half of 2009 as the province continued to feel after-shocks from the global financial meltdown.
The 23 transactions completed in the first half of 2009 represented the lowest first-half number of deals witnessed in the province in the past seven years, according to the recently-released Avison Young Mid-Year 2009 British Columbia Real Estate Investment Review. However, investor confidence continues to improve as investor confidence continues to improve and global economic restraints ease.
Total dollar volume in the first half of 2009 fell 12% to $643 million from $734 million in the second half of 2008. (It is important to note, though, that the majority of those second-half 2008 deals were negotiated in the early part of 2008, before the fall 2008 equity market crash.)
Year-end 2009 sales volume is on track to meet last year’s level of $1.27 billion.
Industrial deals (11) outnumbered office (8) and retail (4) transactions. But office deals accounted for 79%, or $506 million of the $643 in total dollar volume, while industrial amounted to 15%, or $96 million, and retail reflected a modest 6%, or $41 million. The average sale price in the first half of 2009 increased to $29.2 million from $24.5 million in the second half of 2008 and $14.5 million in the first half of 2008.
The semi-annual report tracks office, industrial and retail investment sales in B.C. greater than $5 million.
To see the full report, go to: http://www.avisonyoung.com/library/pdf/Van_Research/Invest_MID_09.pdf
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