It’s only the people who either don’t work in real estate or don’t invest in it that might make the incorrect assumption that real estate is only about residential properties. Further, there are many agents who will choose to specialize in marketing, buying, and selling commercial properties and in major metro centres this can be a very solid choice for people who want to make money in real estate. It’s also not uncommon for realtors to work with returning clients who have already purchased at least one home to now be expressing an interest in BC commercial real estate.
Industrial continues to be the hottest asset class in every major Canadian real estate market as demand is outpacing supply in ways that even outdo what’s being seen in the residential housing market in most major Canadian cities. In Vancouver for example there is a 0.6% vacancy rate in the industrial sector and the situation is so acute it is having potential negative ramifications for provincial economy.
Having the versatility with your industry know-how and expertise to shift focuses as clients’ wish is something that will benefit a real estate agent. It’s best to try and get to a broad base of knowledge as soon as possible, along with doing whatever else you can to gain an edge on competitors. Real estate is always among the most competitive in any major city where properties have great value, and that shouldn’t come as a surprise. Here at Real Estate Leads our online real estate lead generation system is an excellent way to meet new clients of all sorts and be fast-tracked when it comes to being in touch.
But back to topic, right here at the end of 2021 / start of 2022 we may be at a time where it’s advisable for clients to consider offloading some of the assets they have in commercial real estate. Let’s look deeper into why that is.
Vancouver Example
The BC economy benefits from local industrial activity just as that of any other province would. According to the Q3-2021 Vancouver Industrial Market Report from Colliers, Vancouver entered a 5th straight quarter of zero vacancies for 100,000+ sq. ft industrial facilities category and a 2nd quarter in a row of absolutely no facilities larger than 50,000 sq. ft being available. This has meant that demand for strata space has never been higher.
Through the first 3 quarters of 2021 there was an average price per square foot for strata in the GVA that was a record high at $429 per square foot. This works out to an increase from 110% from the same period in 2016 and Vancouver also established a record-high average price per square foot for strata over the first 3 quarters of 2021 – $619 per square foot. That is a 98% increase from the same period in 2016.
We’re also seeing e-commerce companies contending with supply-chain disarray, and this is expected to increase demand for warehouse and distribution space is going to become stronger through 2022. This demand is obviously going to push prices up, and even more than incrementally. The trend for e-commerce firms to offer favourable deliveries also means they need that industrial space that’s near town.
All of this creates a situation where realtors may want to advise their clients to consider the valuations they have for commercial / industrial properties they’re holding onto. If current trends continue into the middle of 2022 we may have a commercial real estate market here that is extremely hot and the prices that similar properties are selling for may be something your clients want to be made aware of.
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It’s only the people who either don’t work in real estate or don’t invest in it that might make the incorrect assumption that real estate is only about residential properties. Further, there are many agents who will choose to specialize in marketing, buying, and selling commercial properties and in major metro centres this can be a very solid choice for people who want to make money in real estate. It’s also not uncommon for realtors to work with returning clients who have already purchased at least one home to now be expressing an interest in BC commercial real estate.
Industrial continues to be the hottest asset class in every major Canadian real estate market as demand is outpacing supply in ways that even outdo what’s being seen in the residential housing market in most major Canadian cities. In Vancouver for example there is a 0.6% vacancy rate in the industrial sector and the situation is so acute it is having potential negative ramifications for provincial economy.
Having the versatility with your industry know-how and expertise to shift focuses as clients’ wish is something that will benefit a real estate agent. It’s best to try and get to a broad base of knowledge as soon as possible, along with doing whatever else you can to gain an edge on competitors. Real estate is always among the most competitive in any major city where properties have great value, and that shouldn’t come as a surprise. Here at Real Estate Leads our online real estate lead generation system is an excellent way to meet new clients of all sorts and be fast-tracked when it comes to being in touch.
But back to topic, right here at the end of 2021 / start of 2022 we may be at a time where it’s advisable for clients to consider offloading some of the assets they have in commercial real estate. Let’s look deeper into why that is.
Vancouver Example
The BC economy benefits from local industrial activity just as that of any other province would. According to the Q3-2021 Vancouver Industrial Market Report from Colliers, Vancouver entered a 5th straight quarter of zero vacancies for 100,000+ sq. ft industrial facilities category and a 2nd quarter in a row of absolutely no facilities larger than 50,000 sq. ft being available. This has meant that demand for strata space has never been higher.
Through the first 3 quarters of 2021 there was an average price per square foot for strata in the GVA that was a record high at $429 per square foot. This works out to an increase from 110% from the same period in 2016 and Vancouver also established a record-high average price per square foot for strata over the first 3 quarters of 2021 – $619 per square foot. That is a 98% increase from the same period in 2016.
We’re also seeing e-commerce companies contending with supply-chain disarray, and this is expected to increase demand for warehouse and distribution space is going to become stronger through 2022. This demand is obviously going to push prices up, and even more than incrementally. The trend for e-commerce firms to offer favourable deliveries also means they need that industrial space that’s near town.
All of this creates a situation where realtors may want to advise their clients to consider the valuations they have for commercial / industrial properties they’re holding onto. If current trends continue into the middle of 2022 we may have a commercial real estate market here that is extremely hot and the prices that similar properties are selling for may be something your clients want to be made aware of.
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Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads. The important distinction is in the fact that these leads are only provided to you, and you’ll be the only realtor receiving these leads that are for prospective clients most likely living in the same town but at the very least considering a real estate sale or purchase there. It’s a great way to supercharge your client prospecting efforts and we’re nearly certain you’ll see it as a very worthwhile investment in growing your real estate business.
