According to Realty Today, commercial property owners have gained the upper hand in Vancouver’s world of commercial real estate as it has turned into a seller’s market. The time is right for owners to take control over the market and command a higher price because of the low inventory of properties. Vancouver’s real estate is slowly becoming a global market too as interest from outside of the country peaks.
Two major commercial properties have already recently been listed: the Molson brewery and the Bentall office towers. The brewery is located on a large stirp of land beside the Burrand Bridge while the Bentall towers are located in the heart of Vancouver’s financial district. More owners are preparing to list, hoping to capitalize on the market too. Maury Dubuque, managing director at Colliers International, commented, “There’s a lot of discussions in a lot of boardrooms throughout Vancouver on real estate strategy. Many of our clients are having those conversations.” Commercial brokerage firm, Cushman & Wakefield’s senior managing director Hendrik Zessel also spoke out on the matter , “Today, there’s a lot of money in the system. People want hard assets and Vancouver is safe.”
When it comes to the Bentall towers, Ivanhoé Cambridge (the main owner) believes that now is the best opportunity to sell the property to the highest bidder. Spokesperson Sébastien Théberge said, “There is great appetite from global institutional investors for core assets in key cities and there is limited inventory that is accessible. Bentall Centre offers a centre-ice location, long-term value and opportunity for more development.” Typically, when a property is sold, minority co-owners are offered to purchase a larger share in the property first, but the towers are such a hot property, smaller companies such as Great West Life were overlooked though they were informed about the listing.
Unlike the Bentall towers, the Molson brewery is taking a different approach by testing the waters of the market. It is still currently occupied and being used to produce beer and kegs. Depending on whether they receive the price they’re looking for will determine how badly they would like to sell and relocate the brewery.
Each owner has their tactics and their motivations, but all can agree that the market is hot for sellers, and now is the right time to take advantage of it.