We've Got a Supply Problem
There is unprecedented demand for commercial real estate, but a shortage of product is hampering sales activity. A RE/MAX Commercial Investor Report covering 11 major Canadian centres looked at the first half of the year, covering areas like multi-unit residential, industrial, and retail. Sales decreased in 73% of the markets because of dwindling supply. (Kids, you might want to slap a for-sale sign on your treehouse.) Numbers from RealNet were used in the larger markets across Canada.
"Risk aversion appears to be behind the thrust for commercial product, with owner-operators now investing in themselves," RE/MAX regional EVP Elton Ash says. The trend to own rather than rent is especially prevalent in the industrial sector. Low interest rates and solid economic performance remain the drivers. In Greater Vancouver, according to the report, there were close to 600 sales in the first half of 2013, down 15% compared to 2012. (In the image is Discovery Parks Vancouver, an office transaction in the first half valued at $66M.)
