Apr 12, 2016 - Founded in 1978, the company comprises 2,200 real estate ... Avison Young was a winner of Canada's Best M
For Immediate Release (2 pages) Tuesday, April 12, 2016
Contact: Andrew Petrozzi 604.646-8392
[email protected]
Editors/Real Estate Reporters • Please click on link to view Avison Young’s Spring 2016 British Columbia Multi-Family Investment Report: http://www.avisonyoung.com/fileDownloader.php?file=files/contentfiles/Offices/Vancouver/Research/2016/Spring2016BCMultiFamily_web.pdf
Record levels of investment activity push British Columbia multi-family assets to new pricing peak Avison Young releases its Spring 2016 BC Multi-Family Investment Report Vancouver, BC -- Investors’ appetite for multi-family assets in British Columbia was ravenous in 2015 and so far shows no signs of abating in 2016 as local and foreign purchasers largely disregard traditional pricing metrics such as sales comparables and capitalization rates in favour of acquiring well-located quality assets (and the land they are located on) at pricing that was inconceivable even 12 months earlier. Multi-family investment activity achieved record levels in 2015 with 80 transactions valued at $1.41 billion, far surpassing the 43 transactions valued at $582 million that were completed in 2014. Even more astonishing was that 54 transactions valued at more than $1.0 billion occurred in the second half of 2015 alone compared with 26 deals worth $370 million in the first half. (Avison Young only tracks multi-family investment transactions trading at more than $5 million.) These are some of the key trends noted in Avison Young’s Spring 2016 British Columbia Multi-Family Investment Report, released today. With pricing so attractive in the back half of 2015 (which marks a reversal from the past few years when multi-family investment activity typically slowed in the second half), vendors who would typically never consider selling decided to dispose of assets once considered irreplaceable. “The metrics traditionally used to value multi-family assets in BC, particularly in Metro Vancouver, have been altered dramatically in the past 12 months,” comments Avison Young Principal Rob Greer. “The introduction of updated official community plans by municipal planning departments in an effort to boost density and affordability and the associated ‘upzoning’ that potentially comes along with such plans has further stoked the prices that purchasers are willing to pay.” Page 1 of 2
Rising values associated with the sale of multi-family assets in 2015 were triggered by heightened demand from purchasers willing to offer premium pricing that forced even reluctant vendors to reconsider (especially in light of the advancing age and deferred maintenance involved with some BC multi-family assets). These transactions demonstrated what pricing could be achieved and what was necessary in order to acquire multi-family properties in this market. Investment activity snowballed as owners realized gains that were previously unachievable, which subsequently triggered other owners to sell. The report also contains a Q&A with Peter Edgar, President of Edgar Development, discussing the challenges and benefits of developing new purpose-built rental buildings in the City of Vancouver and elsewhere. Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,200 real estate professionals in 77 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties. -end-
For further info/comment/photos: • Robert Greer, Principal, Avison Young: 604.647.5084 • Michael Keenan, Principal and Managing Director, Vancouver, Avison Young: 604.647.5081 • Andrew Petrozzi, Vice-President, Research (BC), Avison Young: 604.646.8392 •Sherry Quan, Principal, Global Director of Communications & Media Relations, Avison Young: 604.726.0959 or 604.647.5098 www.avisonyoung.com Avison Young was a winner of Canada’s Best Managed Companies program in 2011, 2012, 2013 and 2014 and requalified in 2015 to maintain its status as a Best Managed Gold company Follow Avison Young on Twitter: For industry news, press releases and market reports: www.twitter.com/avisonyoung For Avison Young listings and deals: www.twitter.com/AYListingsDeals Follow Avison Young Bloggers: http://blog.avisonyoung.com Follow Avison Young on LinkedIn: http://www.linkedin.com/company/avison-young-commercial-real-estate Follow Avison Young on YouTube: www.youtube.com/user/AvisonYoungRE
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