“It is astonishing,” said Dylan Sohi, a commercial agent with Colliers International’s Surrey office, who said prices have rocketed up in the past three years since he joined the company.
According to Sohi, the commercial market in the Fraser Valley is being driven by the affordability of housing in this market, compared to markets like Vancouver and even Burnaby and Richmond.
“From the business point of view it’s more the fact that the population has been growing and they are locating in places like Surrey and Langley because there is a large population base and a large workforce,” he told CREW. “Many professional services companies are now locating in the Fraser Valley.”
Sohi pointed to two recent sales as examples: a small mixed-use commercial and residential building on about a half-acre lot on Surrey’s 62 Avenue that just sold for $5.25 million; and a 10-acre development site in central Surrey that sold to Anthem Properties Ltd. for $62.3 million.
It is not uncommon for multi-family residential sites in South Surrey to sell for $2.2 to 2.5 million per acre, he adds, up from $1.8 million to $2 million an acre just five months ago.
Looking ahead, Sohi sees continuing strength and busy days ahead for commercial brokers such as himself.
“As long as the residents keep coming, which I know they will because of the affordability and liveability of the area, I believe developable lands sales and commercial investment product in the Fraser Valley will see a consistent increase in pricing over a long-term basis.”
What’s good for the goose is good for the gander in BC’s lower mainland as high prices in Vancouver are driving up business for agents in outlying areas, and not just for residential agents, but also for commercial agents, some of whom have made the transition in recent years.