Property Woes Slam Cities Across Continent, But Not Vancouver
The Wall Street Journal reports: The picturesque city of Vancouver, Canada, has turned into an unexpected oasis in the bleak desert of commercial real estate.
In most cities in the US and Canada, sales activity has frozen to a standstill. Would-be sellers are unwilling to accept the steep drops in value of office buildings, shopping centers and other commercial property. And even if they were, buyers can't get financing.
But then there's Vancouver, a city of about 578,000 people with views of the Pacific Ocean and the Coast Mountain range. Its office market has logged seven building transactions this year capped off by Germany-based Deka Immobilien's recent $263 million purchase of Bentall V, a 33-story tower in the heart of the city's business district.
Just as impressive, prices have held up well. By contrast, only five office properties have sold in Manhattan in the first two quarters of this year, and average prices paid are off 32%, according to Real Capital Analytics.
So what gives?
View the full article on The Wall Street Journal: Property Woes Slam Cities Across Continent, But Not Vancouver
Posted by: Matthew Stone