747 Cardero Street, a 2-storey office building at Cardero and Alberni Streets in Downtown Vancouver has sold for $2,800,000, or about $995 per sq ft. The building had been fully vacant at the time of sale.
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4434-4438 West 10th Avenue Sold
A single storey retail building in the Point Grey Village area of Vancouver has sold for $3,108,000, or $1,120 / SF. The building has tenants including Burgoo restaurant and UPS. The frontage is 50 ft and the lot is zoned C-2. The price works out to $204 per buildable SF, indicating that the property was likely bought as a hold with redevelopment potential.
Retail continues to be in high demand in White Rock as an investment, particularly due to the ongoing demand on behalf of investors to find buildings in well-established safe markets. In particular, White Rock has seen relatively little new construction over the past several years. This is a small market that is difficult to buy into and this has been reflected in increasing rental rates and values.
Retail assets that have traded over the past 10 years have typically been streetfront retail, with most sales occurring in the Marine Drive and town centre areas.
Current cap rates for retail tend to be between 5.0% and 6.0% in this market, and have exhibited gradually increasing average prices over the past 10 years as follows:
Source: Colliers Research
Residential developers continue to look to East Vancouver for new opportunities given the increasing scarcity and rising cost of developable sites in the Downtown and Westside areas.
A landmark sale for East Vancouver was Westbank’s acquisition of the Canadian Tire site at 2220 Kingsway, in the Norquay Village plan area. That site traded at $34,088,000, representing $135 per buildable sq ft.
A review of sales over the past two years shows a general average price of approx. $100 per buildable sq ft., with values varying depending on site specific conditions such as location and zoning. Sites in and around Main Street show prices above $150 per buildable sq ft, where sites along Kingsway have shown a range of $80-100 per buildable sq ft. Other increasingly active corridors include East Hastings and Fraser Street.
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Source: Colliers research.