CBRE Market Outlook Report Predicts Investment Volumes in Vancouver to Remain at Historic Highs into 2018

Forecast for Record Setting, Rising Rents in Industrial, Office and Luxury Retail

Vancouver, BC – March 5, 2018 – Vancouver is likely to see another year of historically high investment volumes, with commercial real estate maintaining its appeal as a stable, high yielding investment vehicle despite rising interest rates and stricter underwriting. This is according to CBRE Canada’s 2018 Real Estate Market Outlook Report that forecasts key trends for commercial real estate, both nationally and provincially.

Nationally, the Canadian commercial real estate market set back-to-back records in 2017, recording over $43.1 billion in investments with CBRE forecasting that the amount could potentially be surpassed in 2018. In Vancouver, commercial real estate investment volumes climbed to a record $11.7 billion in 2017, an increase of 44.9% from the previous year. This increased investment activity was driven by unprecedented demand from investors, a trend that is likely to continue into 2018.

“In Vancouver for 2018, we are forecasting record setting rental rates in office, industrial and luxury retail as demand continues to show no sign of retreat,” said Norm Taylor, Executive VP of CBRE Vancouver. “This will further intensify the appetite of global capital to acquire Vancouver commercial real estate assets.”

Some key Vancouver highlights:

  • Downtown office vacancy is forecast to continue to drop from 5%, the second lowest vacancy rate of all major North American markets. With no meaningful new supply until 2022, this market will see record high lease rates, at times exceeding $50 per square foot.
  • The office market outside of the downtown core will reap the rewards of limited downtown supply as tenants look to house operations in Mount Pleasant, Great Northern Way, Railtown and into the Fraser Valley. As such, office vacancy rates in those areas are forecast to drop to 8% this year, despite the oncoming supply of 20 new buildings adding over 1,000,000 square feet of office space, as demand continues to grow driving rents up.
  • On the industrial front, the availability rate is forecast to drop further 30 basis points to 2%, and net asking rents are expected to elevate by as much as 10%. Industrial demand will continue to outpace new supply in 2018 by 12%.
  • On the retail front, luxury retail continues to perform well in Vancouver, but the pressure of limited vacancy and increased rents on Alberni Street in particular will encourage the development of another luxury enclave outside of this area in the next few years.

A full copy of CBRE Canada’s 2018 Real Estate Market Outlook Report can be downloaded here.


About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through about 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
In Canada, CBRE Limited employs over 2,000 people in 22 locations from coast to coast. Please visit our website at www.cbre.ca.