B.C. office deals surged to their highest level in three years during the first half of 2024, says an Avison Young report.

The vast majority of B.C. office transactions occur in Vancouver.

Office transactions totalled about $685 million, representing 2.5 times the volume traded over the previous 18 months, according to the full-service commercial real estate company.

The office findings were part of an investment review that covered the main asset classes.

Industrial sales led the region’s commercial real estate activity, accounting for the majority of deals and nearing a transaction volume of $1 billion. The report also noted renewed optimism within the commercial real estate industry due to interest-rate drops in June, July, and September. (The Bank of Canada has since introduced an oversized 50-basis-point cut, marking four consecutive reductions following a prolonged series of holds and hikes.)

Additionally, said Avison Young, upcoming changes to federal capital-gains tax rules sparked a significant wave of sales ahead of the June 25 deadline.

As a result, transactions valued at more than $5 million comprised about 38% of all B.C. sales covered by the Avison Young report in the first half of the year.