The steady expansion of major tech companies like Amazon and WeWork into Vancouver is a main driver of demand for the city’s commercial real estate, according to RE/MAX Western Canada regional executive vice president Elton Ash.
These companies’ needs are predicted to push down office vacancy rates across Western Canada for the rest of the year and throughout 2019.
“Investment by major companies like Amazon in Calgary and Greater Vancouver is evidence that commercial real estate – office space specifically – in Western Canada remains a hot commodity,” Ash explained.
“As Canada continues to push further ahead in areas like technology, investors both domestic and abroad see the potential for growth here and are willing to call Canada home.”
This robustness is expected to offset the region’s commercial sales year-over-year decline in the first quarter of 2018, from 886 transactions in Q1 2017 to 523 earlier this year.
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The country’s other top market is also showing sustained strength in this front.
Avison Young’s Fall 2018 North America and Europe Commercial Real Estate Investment Review, released earlier this month, noted that Toronto’s office properties generated $2.7 billion in sales, accounting for approximately 60% of national office dollar volume during the first half of 2018. Vancouver also posted a strong $1.1-billion output during the period.