Investor appetite in Vancouver commercial real estate remains hearty, despite some economic indigestion last year. Vancouver ranks as investors’ top Canadian market, with Toronto in second and Ottawa in third, according to a new report from research firm Altus Group. Investment volume across all commercial property types in Vancouver totalled $8.4 billion in 2023, down nearly half (48 per cent) from a year prior.
Despite the drop, the March 21 report described investors as “cautiously optimistic.” Tony Quattrin, vice-chairman of capital markets for real estate company CBRE, described appetite to invest in Vancouver as “the strongest of all of the markets in Canada.” “That's primarily because our fundamentals across all asset classes are the strongest. In other words, our vacancy rate, our rental rate structure … is just better,” he said. “Our supply is less and our values here, they didn't fall as much as they have in the rest of Canada. We have a lot of people selling here because they can retain value.” While Vancouver’s position within the Canadian investment landscape is positive, a challenging economic environment put downward pressure on investment transaction activity in the city last year. “A nationwide slowdown in investment activity was observed due to higher interest rates and inflationary pressures. Across Vancouver, investors exhibited purchasing motivations similar to those of the previous year,” said the repor