Q3 2021 deals up 64% year-on-year as land sales lead the curve
Led by land sales, commercial real estate transactions in a three-month period in 2021 reached $3.25 billion, with third-quarter (Q3) sales jumping 64.1% from last year. same period a year earlier, according to the business advantage Real Estate Board of Greater Vancouver (REBGV) report.
Land purchases of $1.89 billion led the stock, and land sales continued to climb in the fourth quarter.
In November and December, two of the largest land deals of 2021 were completed in Metro Vancouver: the purchase of over $300 million of 27 acres near the Olympic Oval in Richmond, and a 155 million for a 14-acre lot along the Lougheed Highway in Burnaby.
“The strength of land acquisition activity indicates a new interest in development in the region,” said REBGV economist Keith Stewart.
“Commercial real estate activity recovered steadily in the first three quarters of 2021 from 2020 levels as consumer and business confidence recovered from the initial uncertainty caused by the COVID-19 pandemic,” he added.
There were 640 sales of commercial real estate in the Lower Mainland in the third quarter of 2021, compared to 390 sales in the third quarter of 2020, according to data from Commercial Edge. The total dollar value of commercial real estate sales in Q3 2021 increased by 30.7% from $2.487 billion in Q3 2020.
business advantage data includes all commercial real estate transactions in the Lower Mainland of British Columbia that have been registered with the British Columbia Land Title and Survey Authority. It does not include share sale transactions as they are not registered with the Land Title and Survey Authority.
Commercial real estate activity in Q3 2021 by category:
Earth: There were 228 commercial land sales in Q3 2021, a 137.5% increase from 96 land sales in Q3 2020. The dollar value of land sales was $1.839 billion in Q3 2021, an increase of 15.5% from $1.592 billion in Q3 2020.
Office and trade: There were 235 office and retail sales in the Lower Mainland in Q3 2021, representing a 42.4% increase from 165 sales in Q3 2020. The dollar value of office and retail sales retail was $489 million in Q3 2021, an increase of 41.7% from $345. million in the third quarter of 2020.
Industrial: There were 153 industrial land sales in the Lower Mainland in Q3 2021, a 43% increase from 107 sales in Q3 2020. The dollar value of industrial sales was $544 million in Q3 2021, a 116.7% increase from $251 million in Q3 2020.
Several families: There were 24 multifamily land sales in the Lower Mainland in Q3 2021, an increase of 9.1% from 22 sales in Q3 2020. The dollar value of multifamily sales was $378 million in Q3 2021, an increase of 26.4% from $299 million in the third quarter of 2020.