BRITISH COLUMBIA

Mid-Year 2022 BC Investment Review

Near-record levels of investment activity persist in BC’s commercial real estate market desite discussions of a changing market

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Investment Overview

British Columbia’s commercial real estate market registered near-record levels of investment activity. Investors were involved in 458 deals worth a total value of $8.29B across British Columbia in the first half of 2022.

Mid-Year 2022: BC Investment sales by dollar volume & number of sales

Office

The majority of office investment in the first half of 2022 took place in Metro Vancouver.

Sales activity totalled 20 transactions for a value of $476M

Sales activity in office investment in the first half of 2022 totalled 20 transactions for a value of $476M. This represents a nearly one-third reduction in activity over the same period last year.

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The majority of office investment in the first half of 2022 occurred in Metro Vancouver

This marks a significant increase in office sales in secondary markets over the same period last year when only two out of 31 transactions (both in Kelowna) occurred outside of Metro Vancouver.

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Industrial

Demand for development lands remains strong as product continues to improve and increase in quality and efficiency.

79 deals valued at a total of $1.26B

Numbers for the first half of 2022 were higher than those for the first half of 2021 (73 deals valued at $1.1B).

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Demand for BC industrial assets remained very strong

Of the 79 deals that took place in the first half of the year, 23 of them were in excess of $20M, with many being significantly above that.

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Retail

The total number of transactions was higher in the first half of 2022, with 44% more transactions this year compared with the same time last year.

Retail investment sales were exceptionally strong, totalling 59 deals at a value of $892M

The trend in rebounding retail has been steady since this same period last year, when retail sales initially began to bounce back after a period of muted uncertainty due to the pandemic..

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44% more retail transactions this year

The dollar volume remained similar, the total number of transactions was higher in the first half of 2022

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Multi-Family

With 57 sales totalling a value of $1.4B, multi-family sales remained strong during the first half of 2022.

Institutional investors were active in the first half of 2022

Investors are moving away from older rent-controlled buildings and are shifting focus to newer buildings, which have higher rental rates and higher tenant turnover, suggesting a continued interest in new construction.

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Demand for multi-family dwellings from consumers remains high

Vacancy rates are low and international students are returning due to re-opened borders

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Mid-Year 2022 sales by property type & dollar volume

MID-YEAR 2022 | BRITISH COLUMBIA

Investment Review

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© 2021 Avison Young. All rights reserved. E. & O.E.: The information contained herein was obtained from sources that we deem reliable and, while thought to be correct, is not guaranteed by Avison Young Commercial Real Estate Services, LP (“Avison Young”)