199 acres of waterfront could be in play

Nelson Bennett
Western Investor

 Everything Should Be Better: Can you think of any other job that got a 100 per cent raise over the last 10 years?

After a brief lull due to COVID-19, Canada has resumed its default condition of having an absolutely unhinged real estate market. This time around, some of the most meteoric growth has occurred in secondary markets, with price spikes of up to 20 per cent in a single year. So on that note, here’s a video about why real estate agents might be making too much money (or, at least, more than you expected).

Watch the latest Everything Should Be Better video or read the transcript below.

Oh hi there. If you’re watching this video in a part of Canada that speaks English, chances are good that the ground beneath your feet has spent the last couple of decades getting obscenely expensive.

There are a few reasons why this is not a great thing. First of all, it turns your major cities into unlivable hellscapes occupied only by the super-rich and anyone willing to raise their families in a glorified hamster cage. Also, when all of your national investment capital is constantly being poured into property, it doesn’t leave a lot left over for the stuff that actually makes economies grow, like innovation.

But I can tell you who does like a good generation-long housing bubble: Real estate agents.

Now don’t worry; I didn’t come here to bash realtors. One of them raised me, in fact. But before you sell your next house, here’s a few numbers to contemplate.

We’ll start with the obvious: Realtors are paid a percentage of every sale. Typically it’s seven per cent of the first $100,000 and three per cent of everything after that. With the commission usually being split between the buying and selling realtor, your realtor gets about 2.5 per cent of the sale price for selling your house.

In the last 10 years, Canadian average residential real estate prices have doubled. In hotter markets like Vancouver, prices have gone up more than 300 per cent since 2005. Can you think of any other job that got a 300 per cent raise over the last 15 years?

 Aside from this guy’s job, of course. Photo by Reuters/Michele Tantussi

Realtoring isn’t as easy as just showing houses to people: You’ve got office expenses, licensing considerations and all manner of whatever new paperwork the government has decided to throw at you. But, as with many things, the internet has made key parts of the job easier. A prospective buyer can now find your property, review its relevant details and even do a virtual walkthrough without your agent ever needing to pick up a phone.

Also, did I mention we’re in the midst of a crazy red hot real estate market right now?

When I sold my house in Edmonton a few years ago, my realtor had to flip a meh home in a not-great neighbourhood in the midst of a plummeting provincial economy. It was a months-long grind of showings, open houses and fruitless negotiations. Commission well spent, in my view.

But in Vancouver right now, the average property sells in 30 days. And oh look: This townhouse just sold for 30 per cent over its asking price. Far be it from me to say that, in certain markets, when buyers are literally throwing money at you, sales become a bit easier.

So why doesn’t anybody care? You have a profession collecting annual pay raises of up to 20 per cent for work that is staying about the same or getting easier. You would sure notice that kind of price differential at the grocery store, but people barely bat an eye at it when it comes to the real estate trade.

The reason is that, basically, when everybody is making crazy amounts of money for, just, owning land, you don’t get as concerned about the little details. When this is selling for $2.5 million, we’ve already thrown away the normal rules of economics, so yeah, $67,000 for two days’ work sounds about right.

This Vancouver house literally sold for $2.5 million; $100,000 over asking. 

So, screw the realtors: I’ll sell my own danged house. After all, I can turn it into a hotel room with Airbnb, so why can’t I sell it? You can: Services like Purplebricks will let you sell your home through an app for a flat fee, usually around $2,000. They’ll even put you on MLS! Quebec loves private sales: A single for-sale-by-owner website, DuProprio, is now responsible for 20 per cent of all Quebec real estate sales.

Why is Quebec much more open to private home sales? Probably because Quebec’s housing prices haven’t been nearly as insane as the rest of Canada. When you’re selling the family home for about the same price as you bought it, you become a bit more discerning about someone wanting to take five per cent of that.

Now don’t get me wrong: The occupation of real estate agent isn’t a scam. There’s plenty of folks every year who pay their realtor commissions with gratitude.

But if you’re handing five figures to someone who’s just going to post it on MLS and answer a few emails, you might want to consider whether an algorithm could do it just as well.

 

© 2021 National Post

CREA April 2021 Report: Canadian Real Estate Prices Hit Record Highs, Even as Sales Slow

Real Estate News
other

 The national real estate numbers are in for the month of April, and reveal that while markets across the country continue to be extremely competitive, the pandemic-related urgency that has driven record sales over the past year appears to be winding down. 

The Canadian Real Estate Association (CREA) reports that the number of sales dropped between March and April by 12.5%, though are a whopping 256% higher compared to the same month last year. The largest declines were seen in British Columbia and Ontario, though 85% of all Canadian markets experienced a dip in activity month over month.

“While housing markets across Canada remain very active, there is growing evidence that some of the extreme imbalances of the last year are beginning to unwind, which is what everyone wants to see happen,” stated Cliff Stevenson, Chair of CREA. “That said, the slowdown in sales activity between March and April was at a time that COVID cases, including very concerning variants, hit their highest levels ever and many jurisdictions enacted fresh lockdowns, making it harder to get a clear read on the underlying levels of demand and supply. 2021 may be another year where some of the spring market gets pushed into the summer by COVID-19.”

Market Is Stronger Than It Was Pre-Pandemic

It should be noted that the year-over-year April comparisons are distorted due to the inactivity in the market at the depth of the pandemic – as the first lockdown measures set in, buyers, sellers, and the real estate industry as a whole generally froze operations. Activity rebounded strongly in the months that followed as real estate was declared an essential service, agents adapted their services to fall within social distancing guidelines, and buyers and sellers became comfortable operating in the COVID-19-era market.

However, looking to the period prior to the pandemic, the market has strengthened over the long-term, too; compared to conditions two years ago, sales are up by more than half; a total of 66,193 homes sold across Canada in April 2021, compared to around 38,000 at the start of 2019. The average national home price in April 2019 was $495,000.

“While the April national numbers indicate buyers may be taking a breather from the frantic pace that has defined the pandemic-era market, we are still experiencing elevated conditions from a historical perspective,” says Penelope Graham, Managing Editor at Zoocasa. “When we look to the same time period in 2019, sales and average price growth have far exceeded the long-term average, up around 70% and 40%, respectively. It remains a very advantageous time to sell a home, while buyers will continue to grapple with short supply and competitive bidding scenarios.”

Home Price Growth Hits New Record in April

While sales activity may have slowed its pace over the short term, home prices continue to reach new heights; the average sale price across all Canadian markets came to $696,000 in April, a record year-over-year increase of 41.9%.

 

The MLS Home Price Index, which measures the pace of price growth, rose by 23% annually and by 2.4% month over month, reflecting heated markets over a long time period that have put significant pressure on home values, even taking into account the 10% dip in average price experienced by the market last April.

 

This has been caused by unprecedented demand among buyers, particularly for higher-priced detached homes, during the depths of the pandemic. As lockdowns required that people stay at home, properties that could accommodate virtual work and school needs, and with access to green space, became especially popular. Buyers also increasingly considered smaller cities and towns where real estate prices are considerably more affordable than in big city centres, which has amped up the competition, and price growth, in these typically slower markets. The largest price gains were experienced in Ontario markets (between 20 – 50%), and in BC, Quebec, and New Brunswick, between 10 – 30%. The prairie markets and Newfoundland – which had experienced long-term declines pre-pandemic – saw home values increase between 5 – 15%.

However, as has long been the case, benchmark prices are widely varied across the country, topping the million-mark in Canada’s largest markets, and considerably lower in the prairies and atlantic Canada:

• Greater Vancouver: $1,097,900
• Greater Toronto: $1,005,500
• Calgary: $447,800
• Montreal: $483,200
• Greater Moncton: $249,500

Supply of Homes for Sale Remains Historically Low

Another key issue is that the supply of homes for sale is far too low to keep pace with demand – while a number of new listings came to market in March, that was effectively wiped out by a -5.4% decline in April, with about 70% of markets experiencing a decline.

 

This imbalance is keeping the national market mired in a steep sellers market, with a national sales-to-new-listings ratio (SNLR) of 75.2%. This ratio is a metric used by CREA to determine the level of competition in the housing market; calculated by dividing the number of sales by the number of new listings over the course of the month, a range between 40 to 60% indicates a balanced market, with above and below that range indicating sellers’ and buyers’ markets, respectively. While last month’s ratio is substantially lower than the record-breaking 90.6% recorded in January, it’s evident that buyers are experiencing challenging dynamics in markets across the country. For context, the long-term average for the national SNLR is 54.4%.

The total months of inventory – which measures how long it would take to completely sell off all homes for sale on the market – sat at 2 months in April, again an improvement from the 1.7 months recorded in March, but well below the long-term average of five months.

Future Outlook

Analysts are keen to see whether the short-term slowdown in national sales will continue throughout the typically busy summer months, and whether a softer pace will eventually trickle down to prices. As mortgage rates are poised to remain low for the foreseeable future, and vaccine rollouts become more prevalent, the usual fundamentals that support a busy market are likely to return, too.

 

© 2015 – 2020 Zoocasa Realty Inc.

Chetwynd, B.C., multi-family rental sells at $110,000 per door

Oakwyn Realty Ltd.
Western Investor

Two properties with 60 units on 2.1-acre site in northern B.C. town sold for $6.6 million, nearly $3.5 million over the assessed value, after multiple offers.

Type of property: Multi-family rental

Location: 5133 and 5137 50^th Street, Chetwynd, B.C.

Number of properties: 2

Number of units: 60 (total)

Size of property: 46,432 square feet

Size of land: 91,911.6 acres

Land size in acres: 2.11 acres

Zoning: RM2

BC Assessment value (2020): $3.12 million

List price: $6.96 million

Sale price: $6.66 million

Date of sale: April 28, 2021

Brokerage: Oakwyn Realty Ltd., Vancouver

Brokers: Chris Hayne, Eric Wu

 

© Copyright 2020 Western Investor

Coquitlam 0.71-acre development site sells for $3.25 million

NAI Commercial
Western Investor

The land, where future commercial zoning is not defined, sold for less than the assessed value.

— NAI Commercial, Vancouver, for Western Investor

Property type: Development land

Number of lots: 2

Location: 3021-3033 Gordon Ave, Coquitlam, B.C.

Land size: 0.71 acres

Zoning: “Business enterprise” use within Coquitlam OCP

Current zoning: Commercial

Potential floor-space ratio: FSR 2

BC Assessment value (2020):  $3.64 million

Sale price: $3.25 million

Date of sale: April 6, 2021

Brokerage: NAI Commercial, Vancouver

Brokers: Gary Haukeland and JD Murray

 

© Copyright 2020 Western Investor

Bluebird packs Alberta into self-storage portfolio

Wl Staff
Western Investor

 — Bluebird Self Storage expanding in 

the West. | Submitted

Bluebird Self Storage, based in Mississauga, Ontario, has bought five StoreSmart Self Storage locations in Alberta.

The storage assets are in Canmore, Cochrane, Edmonton, Red Deer and Sherwood Park – adding 3,000 units and 362,000 square feet of space to Bluebird’s portfolio. Bluebird is now the fourth-largest self-storage company in Alberta and seventh-largest in Canada.

The total value of the acquisitions was not provided.

Reade DeCurtins, Bluebird Self Storage’s co-founder and real estate director based in Calgary, said the Alberta market is fertile ground for the company’s growth.

“Our footprint is rapidly expanding in Western Canada and we’re bullish by what we see ahead. Storage rates in select Alberta markets match those of other major metropolitan markets in Canada and we are encouraged to see our coast-to-coast acquisition strategy materializing,” DeCurtins told the Real Estate News Exchange.

“We’re focused to become Canada’s most recognized, premium self-storage brand.

The transaction in Alberta takes our capital outlay to nearly $200 million since December 2020. Moving aggressively, we are seeking management and acquisition opportunities in British Columbia,” he said.

There is plenty of room for storage growth in Canada, the company claims.

There are seven square feet of self-storage per person in the U.S., and nine square feet per person in the top 25 American markets, according to Bluebird. There’s a little less than three square feet of self-storage per person in Canada.

 

© Copyright 2020 Western Investor

Buying a business: beyond the down payment

Wl Staff
Western Investor

 While cash equal to 20 to 30 per cent of the price is common, lenders can be flexible and there are options to access any extra funding needed

— The down payment decision can affect your finances for years.| WI file

When you’re buying a business, the size of your down payment matters because it has an impact on your finances for years to come.

While there’s no simple formula for calculating the “right” size of a down payment, Jade Hipson, senior account manager at the Business Development of Canada (BDC) says  it’s important to show you have some skin in the game.

“A lot of parties are being asked to take a risk on you—lenders, investors, even the buyer,” Hipson said. “The best way to show your commitment to these parties is to have a significant down payment.”

She says a good rule of thumb is for the down payment to cover 20 per cent to 30 per cent of the purchase price. Even then, lenders will often take it into account that a seasoned entrepreneur is likely to have different financial means than someone who’s just getting started, so the percentage can vary.

Overall, lenders are looking for a meaningful commitment in some form.

Someone who has worked in a company for many years and now wants to buy the company or a part of it, for example, will sometimes be able to purchase the company with a smaller down payment. In this situation, the buyer could argue they are less risky than a pure outsider. This could sway a lender to lower their requirements for the shareholder investment.

If lenders do not want to proceed with a new shareholder who doesn’t have significant funds to invest, one solution can be for the buyer to purchase the company over time. In these situations, the vendor will slowly sell off shares to the buyer and gradually exit the business.

Where does the rest of the money come from?

If you’re putting down up to 30 per cent of the purchase price, the remaining funds can come from a variety of sources.

A bank loan

Also called “senior debt,” this is a common way to cover a portion of the purchase price. This kind of loan usually has a set repayment schedule and relatively low interest rate compared to other options. The terms and conditions will depend on a variety of factors, including the size of your down payment, available collateral and expected business performance.

A low interest rate often comes with strict repayment terms that you can only fulfil if your business performs well right out of the gate, but since that often doesn’t happen, adding in flexibility is important.

Mezzanine financing

Also known as  “junior debt” or “subordinate debt,” this is a more flexible type of loan that can be structured in many ways—and sometimes even treated as equity, effectively increasing the size of your down payment.

This type of debt offers repayment terms adapted to a company’s cash flows, and targets a return on investment that will be more expensive than senior debt but will have flexibility in how that return is achieved (i.e. a mix of a lower coupon interest rate plus a variable return, such as a bonus or a portion of royalties).

Note that mezzanine loans rank below secured debt in repayment priority in case of default.

Vendor takeback

Also called “vendor financing,” this is an attractive option when you want to add flexibility to your financial structure. In this case, the person selling the business takes a portion of the price upfront and agrees to be paid the balance at a later date, often after much or all your senior debt is paid off.

That balance is usually secured through a lien on the property and assets of the company. If the buyer defaults on their payment obligations, the seller can step back in and take over the business, in some cases.

Often, seller and bank financing are combined. In this case, the seller’s lien is subordinate to the bank’s.

Another type of seller financing involves conditional payments, such as stock options or additional payments (earn-outs), if specified performance objectives are achieved.

These provisions help keep the seller tied to the company’s future success, which can be useful to ride out the usual surprises that arise during the early transition years. 

–      WI Staff with Business Development Bank of Canada.

 

© Copyright 2020 Western Investor

A year after its alarming forecast, CMHC predicts 14% home price increase for 2021

Sean MacKay
Livabl

What a difference a year makes. Last May, the Canada Mortgage and Housing Corporation (CMHC) made an attention-grabbing, but plausible forecast that Canadian home prices could fall up to 18 percent over the next 12-month period as the pandemic wreaked havoc on the market.

The now former head of the CMHC, Evan Siddall, first made the comment to the House of Commons Finance Committee, warning the government that a nine to 18 percent drop to the national average home price was possible if the economy didn’t improve.

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Siddall and the housing agency caught a lot of flack for the alarming statement, as it generated considerable and mostly negative media coverage (even in countries very far away) and was criticized for potentially influencing buyer psychology to the point that it would become a self-fulfilling prophecy.

The agency went on to reiterate variations of the gloomy forecast for several months. Last July, it warned that home prices in major markets would fall and remain lower than pre-pandemic levels even by the end of 2022. The forecast was repeated even in September, well into the market’s tremendous recovery, during a media call with the agency’s chief economist.

To be fair, the CMHC wasn’t the only market commentator publishing pessimistic housing forecasts in 2020. Oxford Economics predicted a nine percent decline in home prices by early 2021, while Moody’s just last September said a seven percent drop was likely.

But, in case you haven’t been paying attention, none of this came to fruition and, in fact, prices rapidly soared to record-levels amid unprecedented buyer demand shaped by the pandemic’s impact. They continued to climb to new highs across the country in April.

Now, with the CMHC’s new forecast published this week in its Housing Market Outlook for spring 2021, the agency is understandably singing a different tune. For Canada’s resale housing market, its official forecast is a 10.7 percent to 14.4 percent home price increase compared to 2020’s national average home price.

In dollar terms, the agency expects the average home price to be $649,400 on the high end and $628,400 on the low end.

In line with the consensus among housing market commentators, CMHC believes the recovery that began in 2020 will continue through 2021, with the market remaining “elevated” while a gradual sales slowdown moderates the rate of price growth.

A resurgence in rental demand as immigration recovers and more stability in the pace of home building after a recent surge in activity were other noteworthy predictions contained in the Housing Market Outlook.

“COVID-19 has had unprecedented impacts on Canada’s urban centres. While large parts of the economy have struggled to adapt to pandemic conditions, housing activity has recovered reflecting pent-up demand, adjustment of working practices by many to pandemic conditions, and lower mortgage rates,” said CMHC Chief Economist Bob Dugan, in the outlook.

“Economic conditions are expected to return to pre-pandemic levels by the end of 2023, if broad immunity to COVID-19 takes hold by the end of 2021. This includes the pace of home sales and prices, which we expect to see moderate from 2020 highs over the same period. However, significant risks remain with respect to the path, timing and sustainability of the recovery,” he continued.

 

© 2020 BuzzBuzzHome Corp.

CMHC predicts what will happen to Canada house prices this year

Tara Deschamps
Mortgage Broker News

 Canada Mortgage and Housing Corp. says the average home price could rise by as much as 14% this year, but the pace of sales could moderate by the end of 2023 if broad immunity to COVID-19 is soon achieved.

Prices across the country could soar to as much as $649,400 by the end of the year and reach as high as $704,900 in 2023, the federal housing agency predicted Thursday as it unveiled its annual outlook.

However, the report showed CMHC’s lower-end estimates place the average price at $628,400 by the end of the year and $669,500 by the end of 2023.

CMHC foresees sales and prices slowing from the heated pace triggered by the COVID-19 pandemic in the next two years, but only if the country manages to quell COVID-19 this year and economic conditions return to pre-pandemic levels.

CMHC predicts sales in 2021 will be as low as 584,000 or as high as 602,300, but will slow to as little as 539,600 or as much as 561,100 in 2023.

Last year ended with sales amounting to 551,392 and an average price of $567,699.

“Low mortgage rates, high savings rates and the resilience of income and earnings for more affluent households will continue to support sales for more expensive housing types in 2021,” said Bob Dugan, CMHC’s chief economist, on a call with media.

“In 2022 and 2023, existing home sales will gradually moderate as rising mortgage rates and high prices begin to restrain demand.”

The pandemic trend that saw people flock to cottage country and spacious rural homes will also dissipate.

“The pandemic-induced surge in demand for lower density homes in suburban and smaller communities will have run its course, adding to the downtrend in existing home sales to more sustainable levels,” Dugan said.

But many of these predictions are subject to significant risk, Dugan warned.

COVID-19 remains volatile, economic recovery in major markets is still highly uncertain and a slower-than-expected vaccine rollout would prolong the pandemic and lead to higher mortgage rates, CMHC said.

How employers address remote work could also upend the outlook, Dugan added.

“This is a big question and one that is very difficult to answer, quite frankly,” said Dugan.

“Will employers want their staff back in the office after the pandemic is over or will remote working arrangements continue to some degrees?”

If remote work arrangements continue, he said price differentials between major metropolitan centres and rural counterparts could erode or even reverse.

As Canada pulls itself out of the pandemic, CMHC expects housing starts to stabilize by the end of 2023.

It predicts that rental demand will rebound as immigration recovers, but vacancy rates will likely remain elevated.

In the Greater Toronto Area, where market conditions have heated significantly during the pandemic, CMHC’s highest estimates show prices rising to $1,087,600 this year and $1,205,400 by the end of 2023.

Sales in the city could amount to as much as 113,500 by the end of 2021 and 123,800 by the time 2023 concludes.

They sat at 95,577 in 2020, while average prices totalled $929,673.

Vancouver, another hot market during the health crisis, may see prices climb to as much as $1,129,000 later this year and $1,395,000 by the end of 2023, CMHC said.

The agency added that sales in the city may increase to as much as 50,000 in 2021 and 44,700 in 2023.

Sales amounted to 43,063 last year and the average price was $1,008,688.

 

Copyright © 2021 Key Media

New East Hastings office strata sells for $656 per square foot

Avison Young
Western Investor

The 5,185-square-foot strata office in Vancouver, with a 10-year lease in place, sold for $3.4 million at a 4.29 per cent capitalization rate.

— Avison Young, Vancouver, for Western Investor

Property type: Strata office

Location: 939 East Hastings Street, Vancouver

Property size: 5,185 square feet

Number of tenants: 1

Zoning: CD-1

List price: $3.6 million

Sale price: $3.4 million

Date of sale: April 30, 2021

Brokerage: Avison Young, Vancouver

Broker: Stuart Wright

 

© Copyright 2020 Western Investor

Industrial strata now more pricey than high-end residential condos

Frank O’Brien
Western Investor

Rising lease rates, Canada’s lowest vacancy rate and potential appreciation make strata industrial a hot commodity in Metro Vancouver

— Cutaway of strata industrial space at the new Langley Gateway project. | Denciti Development Corp.

Metro Vancouver now has the lowest industrial vacancy rate in North America, a 0.7 per cent in the first quarter of 2021, and the highest industrial lease rates in Canada.

This, combined with the infamous appreciation performance of Vancouver-area real estate, and rock-bottom financing rates, has persuaded a growing number of industrial customers to buy their space rather than lease.

The soaring lease rates are also persuading investors to purchase strata industrial and lease it out, adding a further impetus to an already hot market.

This year, strata developments account for one third of the 1.9 million square feet of new industrial supply underway in Metro Vancouver, according to Avison Young

“The increasing pricing that strata units can command – supported by low- cost capital – has stimulated the continued appreciation in the value of industrial land, which remains severely constrained and, thus, also contributes to driving pricing even higher,” Avison Young noted in his most recent report on the B.C. industrial sector.

For those trying to decide whether to lease or buy their next industrial space, Cushman & Wakefield cautions that those leasing should act quickly because costs are rising faster than anyone expected. In the first quarter of 2021, average industrial lease rates in Metro Vancouver hit $13.98 per square foot, but they spike above $14 per square foot in Burnaby, to $17.28 in Vancouver and to an average of $18.98 per square foot in North Vancouver.

“After tremendous lease rate growth in 2020, it was expected that lease rates would grow at a more stable rate in 2021. However, given the extremely low vacancy rate, asking lease rates may increase at quicker rates than anticipated.,” noted Cushman & Wakefield research analyst Andrew Vandermay.

A Colliers International survey of major new speculative industrial projects under construction in Metro Vancouver found that three of the five where strata developments. The largest of these is a Conwest Group building on No. 3 Road, Richmond, at 250,000 square feet.

The biggest existing strata sale in the first quarter gives an indication of the values that large space now commands. The deal, for 81,000 square feet at the Riverside Centre in Richmond, closed at $26 million, equating to a price-per-square foot of $320.

The real money for developers – and investors – though, is in smaller strata footprints of light industrial of less than 5,000 square feet, where City of Vancouver prices can top $900 per square foot, and are often above $400 per square foot in the inner suburbs.

The target audience includes architects, designers, engineering firms and small distributors.

A Vancouver real estate agent, who asked to remain nameless,  said a client bought a new unit in a new North Vancouver industrial building two months ago for $570 per square foot.  Now, as the project nears opening,  similar strata  units in the complex are selling for $630 per square foot.

“Some North Vancouver industrial strata space is going for $800 to $900 per square foot,” the agent added.

The pricing means that a 2,000 square foot industrial strata could cost from $800,000 to $1.8 million – in some prime projects even higher – which is above the typical cost of a large Metro Vancouver residential condo. But industrial developers don’t need to pay for fancy kitchens and bathrooms or the level of finishing and amenities demanded in high-end residential strata.

In Langley, the new Langley Gateway, which begins construction this summer as the first strata industry project in the area in 15 years, is offering 90,000 square feet of light industrial in two buildings with prices above $400 per square foot.

Todd Bohn, a partner and industrial specialist at Frontline Real Estate Services, said marketing recently started at Langley Gateway and it is seeing huge demand.

“Industrial businesses are banging down the door for real estate,” Bohn said. “Buyers are motivated to secure ownership in a tightening industrial market.”

Early sales include investors as well as owner-occupiers, Frontline confirms.

Prices for Langley Gateway’s 28 units, which range from 2,600 to 3,600 square feet with front- or rear-grade loading options, are from $410 per square foot to $450 per square foot. The development, near Highway 1 and the 200th Street interchange, is by Denciti Development Corp., in partnership with Nicola Wealth Real Estate.

Even in Abbotsford, where industrial space leases for an average of $11.58 per square foot, new light industrial strata is selling for from $315 to $330 per square foot, according to local commercial agent Dymtro Chernysh of Klein Group-Royal LePage Sussex.

 

© Copyright 2020 Western Investor