Vancouver’s Broadway Corridor: 2019 Investment & Leasing Overview
Key takeaways for 2019:
- Substantial increase in property taxes suppresses potential rental growth for underbuilt properties across all assets classes.
- Residential land market softens across Metro Vancouver as the housing market struggles to find a balanced market.
- The City of Vancouver’s land speculation levy by way of implementing Development Contribution Expectations (DCE’s) has had a substantial cooling effect on the number of transactions for the Broadway Corridor. 2017 saw a total of $219 Million in transaction volume, whereas 2018 saw a modest $130 Million dollars in transaction volume (closed deals). This is down $90 Million from the previous year; however there are a few notable transaction expected to close in early 2019.
- Overall rental vacancy across all assets classes for the Broadway Corridor continues to remain low with the majority of tenant turnover on substantial rental adjustments.
- Over 345 secured market rental housing units, 98 condo units, 438 hotel units, 96,000 square feet of retail and 62,000 square feet of office space supply will come onto the market for the Broadway Corridor over the next five years.
For more information please contact Russell Long.