Commercial real estate investment in the region is down compared to last year--$1.2B from 261 transactions across all asset classes, according to a new Colliers report. (Just try to breath, everyone.) Industrial and retail assets remain the more desired class for investor dollars, says author and Colliers market intelligence coordinator Matt Dixon, with senior associate industrial Stefan Morissette.
In the industrial sector, limited, developable land is available and low vacancies are pushing values. Six of the top deals occurred in Richmond and Delta, totalling $222M. "We're on pace to have another record year for overall dollar volume of sales, as cap rates remain historically low for quality assets," Stefan says. This is despite the fact that REITs have slowed their purchasing activity over the past few months partially due to rising cost of debt. "Demand from local capital and national institutions remains exceptionally strong in our region," he adds.