Record Shattering Investment in Greater Vancouver’s Commercial Real Estate Market
854 sales transactions over $1 million were recorded in Q2 2016, for a total investment value of $3.75 billion.
VANCOUVER – Altus Group, a leading provider of commercial real estate services, software and data solutions, today announced the results for the second quarter of 2016 for the Greater Vancouver Area (GVA) commercial real estate investment market. Q2 2016 saw $3.75 billion worth of asset sale transactions, a 34% increase over the previous quarter.
The number of transactions also experienced a sharp increase, from 596 to 857 transactions in the quarter, a 44% increase from Q1, and the first time since the data series was initiated that there were over 600 transactions in one quarter. Office and Retail deal counts increased by 110% and 114%, respectively, from the previous quarter while Residential Land and ICI Land increased by 36% and 50%.
While the overall activity of the market played a pivotal role in the record quarter, so too did high valued transactions — those over $25 million. Beginning in Q3 2015, the Greater Vancouver market began posting between 11 and 14 high valued deals per quarter. Q2 2016 posted 19 transactions that combined made up 28% of all capital flow.
Five of the seven asset classes tracked by Altus Data Solutions have posted record investment levels in either Q1 or Q2 2016, Hotel and Retail being the exceptions. Retail in Q2 2016 was just slightly off the record set in Q4 2013. Quarter over quarter investment volumes have now hit five consecutive quarters of growth. Quarterly investment volumes have increased by 134% since Q1 2015.
“The record setting first half of 2016 has been fuelled by a combination of both high value asset trades as well as a sharp uptick in deal velocity,” noted Paul Richter, Director, Altus Data Solutions Canada. “The diversity in the market in terms of asset-by-asset contribution, at all price levels, will remain key in maintaining momentum going forward.”
These results were previously released under the REALNET® Canada name, whose independent and comprehensive data, analyses and insights on the commercial real estate investment and residential development markets is collected and compiled using a nationally consistent research process established in 1995. Going forward they will be released by Altus Group, powered by a proprietary data platform led by Altus Data Solutions Canada. This team is the formal unification of leading Canadian real estate data companies previously acquired by Altus Group, including REALNET® Canada.
About Altus Data Solutions
Altus Data Solutions connects the Canadian real estate industry through the provision of data with unparalleled breadth, integrity and relevance, delivered through a proprietary technology platform with integrated analytics.
This unified data solution, combined with trusted industry expertise, empowers our clients to make faster, more informed decisions in a competitive and dynamic real estate industry.
About Altus Group Limited
Altus Group Limited is a leading provider of independent advisory services, software, and data solutions to the global commercial real estate industry. Our businesses, Altus Analytics and Expert Services, reflect decades of experience, a range of expertise, and technology-enabled capabilities. Our solutions empower clients to analyze, gain market insight and recognize value on their real estate investments. Headquartered in Canada, we have approximately 2,300 employees around the world, with operations in North America, Europe and Asia Pacific. Our clients include some of the world’s largest real estate industry participants across a variety of sectors. Altus Group pays a quarterly dividend of $0.15 per share and our securities are traded on the TSX under the symbols AIF and AIF.DB.A.
For more information on Altus Group, please visit: www.altusgroup.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Director, Altus Data Solutions
(604) 683-5591 ext. 1697