Value for money and a strong return on investment will continue to drive activity in Greater Victoria's commercial real estate market, according to a new …
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Value for money and a strong return on investment will continue to drive activity in Greater Victoria’s commercial real estate market, according to a new.
The commercial real estate firm said there is still strong demand for good office space from the provincial government and the private sector, while investors and developers see the region as a relatively good bargain.
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That drop came despite the addition of 280,000 square feet of new office space to the mix. Marshall said there was a flight to quality, with professional firms and government moving to class A space, freeing up class B and C space in the region, with some of that taken up by the growing high-tech sector.Marshall said given the region’s strong fundamentals — low unemployment and a strong, diverse economy — there’s no reason to expect developers and investors to back away from the region anytime soon. Marshall said he has fielded inquiries from the Lower Mainland, across Canada and the U.S. expressing interest in some of the larger properties available in the region.“They have a lot of confidence in the fundamentals evident in Greater Victoria,” said Marshall, who sees demand outstripping supply for the next couple of years. “The reality is a lot of these groups are looking for vehicles to invest in and the West Coast and, in particular, Vancouver Island, [is] shining.
” One of his biggest challenges has been to find large enough properties to suit some of the larger investor groups. But even in rosy conditions, the cost of construction, increased development fees, approval delays and other factors could affect the appetite for development in the downtown core.
Marshall said in some cases, it has spurred developers to explore other municipalities that might be more keen on development. The report also noted that Victoria’s industrial market is experiencing historically low availability, while land constraints have led to upward pressure and record-high lease rates.
Single family home sales in the West Shore fell 17 per cent from the same time last year, keeping in line with overall market cool-off in Greater Victoria.