Commercial property prices to hit record highs in 2016: CBRE

By

METRO VANCOUVER (NEWS 1130) – A forecast for the Metro Vancouver commercial real estate market says “insatiable investors will push property prices to record highs” next year.

CBRE predicts those high prices will push the rate of return for buyers to record lows.

Norm Taylor, CBRE’s managing director for BC, says there’s been a change since Vancouver hosted the Winter Olympics.

“Since 2010 — the Winter Olypmics — our market has matured significantly. We’re seeing everything get bigger: bigger tenants, bigger buildings, bigger rents, bigger prices.”

That pressure will affect neighbourhoods CBRE calls “inner sub-markets” as developers and investors “continue to build strategies” around areas such as Mount Pleasant and Strathcona.

The agency says Vancouver’s tech sector will continue to lease office space, as struggling resource companies use less.

CBRE adds that demand for industrial space is strong, due to “Vancouver’s importance as a key part of the increasingly sophisticated supply chain.”

It expects availability to tighten and construction to rise next year in response to demand.

Top Stories

Top Stories

Most Watched Today