Sales and dollar volumes in the commercial real estate market of the Lower Mainland remained stable in 2022 despite the challenging headwinds brought about by the highest borrowing costs seen in over ten years. The market demonstrated impressive resilience, with sales activity and dollar volumes holding steady, despite the rising borrowing costs that typically drive down commercial real estate activity. According to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV), the Lower Mainland saw a total of 2,116 commercial real estate sales in 2022, which is a 22.9% decrease from the 2,743 sales in 2021. However, this is only a 1.6% decrease from the five-year average for sales (2,082) in the region.
The total dollar value of commercial real estate sales in the Lower Mainland was $12.885 billion in 2022, a 16.5% decrease from $15.424 billion in 2021. Nonetheless, this is a six per cent increase from the five-year average for dollar values ($12.153 billion). This growth shows that the commercial real estate market in the Lower Mainland has remained relatively stable despite the challenging headwinds created by the COVID-19 pandemic and the subsequent economic fallout.
The pandemic has significantly affected the commercial real estate market, with changes in working habits and consumer behavior prompting a shift in property use. However, the demand for industrial real estate has remained robust, with the sector recording the highest sales volumes in 2022. According to REBGV, there were 500 industrial land sales in the Lower Mainland in 2022, which is a 30% decrease from the 711 sales in 2021. However, this is only a 5.5% decrease from the five-year average (529 sales). The dollar value of industrial sales was $1.863 billion in 2022, a 23.9% decrease from $2.447 billion in 2021, but still an increase from the five-year average of $1.769 billion.
In contrast, the office and retail sectors experienced the most significant declines in sales and dollar volumes. There were 804 office and retail sales in the Lower Mainland in 2022, which is down 23.3% from the 1,048 sales in 2021. This is also a 20.2% decrease from the five-year average (1,008 sales). The dollar value of office and retail sales was $2.332 billion in 2022, a 26% decrease from $3.153 billion in 2021, and a 23.3% decrease from the five-year average ($3.038 billion).
The commercial land market remained relatively stable, with 718 sales in 2022, down 14.4% from the 839 sales in 2021 but still above the five-year average of 701 sales. The dollar value of commercial land sales was $7.319 billion in 2022, a 5.5% decrease from $7.746 billion in 2021, but above the five-year average of $6.352 billion.
The multi-family sector saw the most significant decline in sales and dollar volumes. There were only 94 multi-family land sales in the Lower Mainland in 2022, which is down 35.2% from 145 sales in 2021. This is also a 29.8% decrease from the five-year average (134 sales). The dollar value of multi-family sales was $1.371 billion in 2022, a 34.1% decrease from $2.079 billion in 2021, and a 33