B.C. commercial property assessments are climbing while deal pace is slowing, says a new Altus report.
“In Vancouver, Altus market analysts observed a significant reduction in transaction volumes and rising capitalization rates for the first half of 2023,” said the real estate intelligence firm. “Despite this evidence, Altus Group’s review of preliminary 2024 values provided by B.C Assessment indicates that assessments are continuing to rise in most sectors.”:
B.C. Assessment is the provincial authority that assesses property values for taxation purposes.
Most assessments increased between 2022 and 2023. Industrial properties experienced the biggest jumps in particularly in the Vancouver suburbs of Coquitlam, Richmond and Surrey as they received increases of about 30% year-over-year.
Industrial properties, including warehouses are up 13% to 15%, while office building, despite being in less demand.
Retail property values have risen 5% to 9%.
The Altus report was authored by senior research director Sandi Prendergast.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.