Commercial real estate market remains stable, new inventory expands.

Metro Vancouver’s commercial real estate market remains stable, according to the latest CBRE Ltd. reports.

The company’s second-quarter industrial report for the region noted that the overall availability rate of industrial property remained unchanged from the first quarter’s 7.3 per cent. The regional vacancy rate rose 30 basis points to 4.7 per cent but has risen from a two-year low reported in the first three months of the year.

A 14-unit three-storey walkup apartment building in Kits has sold for $4,800,000, or a 3.1% cap rate ($343,000 per unit). The building, located at 2250 York Avenue contains one and two bedroom units and had been listed for sale for $5,600,000. The property is zoned RM-4.

By Frances Bula – courtesy of the Globe & Mail

A local investor group has acquired 1827 West 5th Avenue, a 2-storey office building and parking lot located on West 5th Avenue in the Kitsilano area just west of Burrard Street. The building is 11,300 sq ft and is fully leased to KPMG for a term of two years with three one year renewal options.The site area is 11,200 sq ft.

The purchase price was $6,280,000, representing a 5.0% cap rate on existing income. The zoning for the property is RM-4 and C-3A, which permits redevelopment in the future.

Does Vancouver’s hot investment market make building a better option?.

Consistent demand and high lease values in Vancouver’s downtown office and retail property markets combined with low interest rates continue to fuel a sizzling investment market.

“I don’t think I’ve ever seen the investment market this robust, vibrant and strong. We get multiple bids on everything and anything,” says Ross Moore, director of research for CBRE Canada.