If you have a chance to buy commercial property for sale in Vancouver, you should grab it. Commercial real estate rental rates are rising as the low supply meets high demand. The trend began in 2016, and experts believed it had peaked by the end of 2017. However, the numbers show that is not the case.
Office space vacancies were 10% by the end of 2017. By the opening 2018, it was 5%, the lowest in North America. Developers are rushing to create more space, but it will take at least two years for any of them to be ready. In the meantime, the rent for office spaces is rising.
Some high-end office buildings sell out for as much as $2,000 per square foot. With lease prices at around $50 per square foot, this is a good investment. Pre-leasing is also doing brisk business, with tech companies such as Amazon taking over large chunks of office real estate.
Office rentals are not the only ones seeing a boom in the market. Industrial spaces are also running out, mostly warehouses. Vancouver has a current vacancy rate of just 2.3%. e-commerce companies looking for a place to store their products took up most of the occupied or reserved spaces.
Rental rates soared by 13.6% in 2017 at $10.23 per square foot because of this demand. Some analysts believe that Vancouver may be the first city in Canada to develop multi-story warehouses.
It is a good time to invest in commercial properties for sale in Vancouver. If you can get a good price considering the potential returns, you should consider putting your money in now while demand is high.
Some experts say that the surge in demand and prices in the past two years will stabilize as companies look outside of Vancouver for more affordable options. Even then, the city will continue to attract top companies for a long time to come.