Commercial properties across the Lower Mainland had an average 18% increase in their value the past year. Topping the list were major shopping centres like Pacific Centre, Metropolis at Metrotown, Oakridge Centre, and Park Royal. The assessment was part of the BC property value assessment used by municipalities to set property taxes.
In the non-shopping centres group, the list was helmed by Rio Tinto Alcan aluminum smelter complex in Kitimat followed by the Plaza of Nations in downtown Vancouver. The Bentall 5 in downtown Vancouver was the most valuable office asset in BC.
Commercial Property Value increased by 18%
There was an average of 18% increase in commercial property values over the last year. Scott Bowden, BC’s Managing Director of Colliers International’s valuation and advisory services, explained that most of the top 25 properties had experienced an increase over the past year due to the valuable positive perception these properties have. “Many of the properties have recently transacted as national and international firms see Vancouver as an attractive investment,” Bowden said. “In the office class, the arrival of new technology firms is pushing office rents up, which continues to make these buildings attractive to investors.”
Most shopping centres in the list are or are planning to develop neighbourhoods around them which has increased their value. “With thousands of residential units planned for each of these developments, shopping malls will continue to carry the highest values for commercial properties in the Lower Mainland,” said Bowden.
For 2019, Bob Levine, a principal at Avison Young in Vancouver, predicts that commercial property prices will continue to rise in 2019, “even though there are major owners selling, there are also major investors buying.”
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