WRITTEN BY
NICK RENTON BROKER WILLIAM WRIGHT COMMERCIAL
THE BANK OF CANADA IS ON THE MOVE
On October 23, 2024, the Bank of Canada (BoC) reduced the policy rate by 50 basis points, lowering the overnight rate to 3.75%. This marks the fourth consecutive cut by the BoC, reflecting an intent to stimulate the economy as inflation cools. With further rate reductions anticipated into early 2025, the BoC aims to boost economic activity across all sectors, including commercial real estate. With the sheer velocity of rate movements by the BoC over the last 5 years, how has the Canadian commercial real estate market been impacted and what can we expect moving forward?
In March 2020, the BoC’s overnight rate fell to a historic low of 0.25% as we began the long march through the pandemic. By July 2023, rates were increased to 5% to stem the rapid rise of “transitory” inflation and bring household spending down. Now that the BoC appears to have achieved their 1-3% inflation target, they are taking their foot off the gas pedal and consequently, we may see a comparatively high velocity shift in rates downwards.
Unfortunately, I believe this policy change has come too late in the cycle and many good businesses and developers may be consolidated as a result. Moreover, a reduction in rates does not make immediate impacts to economic demand. There will be continued compression on commercial real estate assets, especially products with high supply, such as the industrial and office markets.
SORRY WE HAVE CLOSED
CANADA MOVE ONCE AGAIN
As a former commercial lender, the items I discussed with my clients in each financial review were:
1. How can I help you in the current stage of your business/investment planning?
2. How can I help you in the next stage?
3. What is your current access to capital to accommodate 1 and 2?
When interest rates rise, access to the right capital becomes more of a challenge and can limit expansion opportunities, cashflow protections, and inputs into the economy. Those who have available capital will invest it into safer assets with predictable returns as opposed to taking on riskier projects and investments. This can impact commercial real estate dramatically, as developers stop building, factories stop producing, warehousers reduce inventory, and consumer spending declines.
In Kelowna, we saw several projects that had completed initial phases of their developments postpone the build of remaining phases or pull the plug entirely. Specifically, in the industrial market, we saw several projects that had sat vacant throughout 2023 and 2024 come to market with reductions in price and large incentives to draw tenants and buyers into the projects. Additionally, BC has seen a large hit to the hospitality, tourism, and viticulture industries, with sales of assets and closures of businesses leading into the end of 2024. Reports indicate that up to 10-15% of the province’s 15,000 restaurants may shutter by mid-2025.
INFLATION PEAKED AT 8.1% IN SUMMER 2022 INFLATION HAS FALLEN TO 1.5% IN SEPT 2024
When interest rates fall, as we’ve seen in the last half of 2024, access to the right capital begins to ease, allowing for more trust in the direction of the economy. Canada’s chartered banks are indicating reductions in rates to as low as 2.25% by the end of 2025, which would be welcome news to most commercial real estate assets. Our William Wright offices throughout BC have already seen increased inquiries across all asset classes. We are also hearing from our development partners across Canada, who are asking for new opportunities and are revisiting sites that may not have penciled out over the last 24 months. What will be important to watch now is how the BoC will manage its expansionary policy decisions to ensure that inflation is not reignited, leading to another rollercoaster of rate decisions over the coming years.
As a commercial real estate broker, the items I discuss with my clients have now shifted to:
1. Is your current property the right fit for your business/investment needs today?
2. How do we protect your business/investment through appropriate planning with your professional team.
3. How do we help you expand your commercial real estate portfolio moving forward?
I am hopeful that with falling interest rates, these questions can be answered with more confidence and predictability, which will encourage stimulus in economic outputs throughout BC and Canada. While headwinds are still prevalent, we expect demand in commercial real estate to increase as free capital moves from safety and into higher performing assets. •
WHERE
CONNECTIVITY AND COMMUNITY
COLLIDE
Innovation District in Penticton THE SHOPS AT THE
THE RETAIL SPACES
Be the first to join this groundbreaking project and take advantage of the unparalleled commercial opportunities in this vibrant, 10-acre master-planned community, which will house over 2,000 people and support more than 300 permanent jobs on site. Phase One includes a residential building and a six-storey mass timber mixed-use building, providing a total of +/- 25,000 square feet of retail space. Flexible unit sizes and configurations offer a unique opportunity for restaurateurs, retailers, professional/ personal services, medical, and office users to immerse themselves in this rapidly growing community estimated to see up to 1,200 vehicles per hour by 2030.
UNIT SIZES
+/- 1,000–10,000 SQFT
THE COMMUNITY
LIST PRICE
Contact Listing Agents
Start or grow your business in the most dynamic community in the Okanagan, situated directly across the road from Penticton Regional Hospital and within walking distance of nearly 4,000 employees, within this master-planned, urban village. Located just minutes from major highways and the Penticton Regional Airport (with daily flights to Vancouver and Calgary), the Innovation District provides easy access for clients, employees, and partners alike. Locals can enjoy their commute with access to bike lanes and e-scooters, promoting a healthy and ecofriendly lifestyle, along with plans for an onsite daycare to accommodate the City's growing number of young families.
FOR MORE INFORMATION, CONTACT THE KELOWNA OFFICE
Jeff Brown
jeff.brown@williamwright.ca 250-575-8768
Victoria Mitchell
victoria.mitchell@williamwright.ca 250-300-4705
Nick Renton
nick.renton@williamwright.ca 778-584-5308
Shelby Kostyshen
shelby.kostyshen@williamwright.ca 250-808-1442
Kelowna Office 205-478 Bernard Ave, Kelowna 236-420-3558
FOR SALE 3000 KEYSTONE DRIVE, DUNCAN
William Wright Commercial is pleased to present this exceptional opportunity to acquire a prime 1.07-acre residential development site situated in the heart of the Cowichan Valley, in the city of Duncan, British Columbia. The site is strategically located at the intersection of Keystone Drive and Cowichan Lake Road, just north of the Cowichan District Hospital, making it a desirable location for both residents and developers.
PRICE
$1,650,000
LOT SIZE +/- 1.07 AC
ZONING
R8 – Residential Multi-Family Apartment Zone
TYPE
Multi-family Development Site
AGENTS
Connor Braid*
Harry Jones*
*PERSONAL REAL ESTATE CORPORATION
*PERSONAL REAL ESTATE CORPORATION
CREi Summit Top Podcast Influencer 2024
VCREP Ranked 34th
Vancouver Commercial Real Estate Podcast is named a Top Podcast by CREi
We are thrilled to announce that the Vancouver Commercial Real Estate Podcast has been recognized as one of the Top Podcasts in commercial real estate by curators at the CREi Summit. Cory Wright, founder of William Wright Commercial and host of the Vancouver Commercial Real Estate Podcast, is named the 34th top podcast influencer in Commercial Real Estate in North America. We are proud to be amongst such celebrated podcasts and to represent our market as the only Canadian podcast on the 2024 list.
William Wright Commercial expands Fraser Valley office
William Wright Commercial is excited to announce the expansion of our Fraser Valley office! Our new office is located at 180-8621 201 Street in Langley.
Opened in 2018 as William Wright Commercial’s third location, the Fraser Valley office marked a significant milestone in our company’s rapid growth and journey towards becoming BC’s largest commercial real estate brokerage by office count.
Strategically positioned near 200 Street and Highway 1 in Langley, we are located at the center of the dynamic Fraser Valley market. This prime location provides us with an improved, 150% larger space for our growing team, along with superior access to the Lower Mainland and on-the-ground insights to better service our clients.
We will continue building lasting relationships in this vibrant community, and look forward to working with you at our newly expanded William Wright Fraser Valley office at 180-8621 201 Street, Langley.
901-915 KALAMALKA LAKE RD, VERNON
Shelby Kostyshen, Jeff Hancock*
+/- 800–10,000 SQFT of move-in ready industrial, retail, and office spaces offering varying unit sizes and flexible lease terms.
107B-2748 LOUGHEED HWY, PORT COQUITLAM
Zain Rasul, Katie Zoladek
+/- 2,058 SQFT retail space at Westwood Centre with outstanding visibility and access to Lougheed Highway.
1180 RESORT DRIVE, PARKSVILLE
Santanna Portman
Up to 1.5 acres of grocery anchor development opportunity to be adjacent to over 240 apartment units.
4, 5 & 6-685 FINNS ROAD, KELOWNA
Shelby Kostyshen
Light industrial units with ample parking on-site and great signage opportunities.
+/- 1,444–5,685 SQFT.
15047 MARINE DRIVE, WHITE ROCK
Chris van Vliet*
+/- 2,581 SQFT beach-front property with restaurant build out located adjacent to the White Rock Pier.
7865 EDMONDS STREET, BURNABY
Gavin Brar
+/- 13,962 SQFT building offering 3-storeys of high level improvements for a health and wellness centre.
120-777 ROYAL OAK DRIVE, VICTORIA
Harry Jones*, Connor Braid*
Open concept +/- 4,106 SQFT retail space at Broadmead Village, a high traffic shopping plaza off Patricia Bay Highway.
56 HADOW ROAD, ENDERBY
Nick Renton
+/- 26,000 SQFT purpose built agricultural production facility on 35 acres of A1 and CR zoned land in North Okanagan.
1243 HAMILTON STREET, VANCOUVER
Roderick MacKay
+/- 626 SQFT turnkey salon in a highly sought-after location in Yaletown. Owneroccupier opportunity.
380 VICTORIA STREET, KAMLOOPS
Marianne DeCotiis* +/- 5,947 SQFT well positioned building in
201/202-6678 152 STREET, SURREY
Josh Jawanda*, Nathan Armour* +/- 2,552 SQFT fully furnished, turn key office space with high-end finishes and amenities at Hyland Square.
1671 LIONS GATE LN, NORTH VANCOUVER
Zain Rasul, Meg Cooney
+/- 823 SQFT corner retail unit in PARK WEST with overheight ceilings, floor-toceiling glazing, and ample parking.
RARE 1,081 SQFT TURN KEY OFFICE
William Wright Commercial is pleased to present the opportunity to purchase a fully built out office space. This 1,081 square foot unit is located on the second floor of the Spire Professional Centre. Improvements include a reception/waiting area, 3 private offices, boardroom, kitchenette, and open work area. This central location is just off of the busy 200th Street Corridor and Highway 1 Interchange in the Willoughby area.
Fully Built Out Office at Spire Professional Centre
Class A Office Space
Fully Built Out
Abundant Glazing and Natural Light
Secured Underground Parking
PRICE
$1,189,100
+/- 1,081 SQFT
Chris van Vliet*
William Wright Commercial is pleased to announce the sale of a 2,843 square foot strata unit, occupied by a well established Veterinary Business. South Point Pet Hospital has been in business at this location for 20 years. The facility is fully equipped with everything required to operate a successful clinic.
For information on this transaction or any other upcoming opportunities, please contact the Fraser Valley office.
SIZE +/- 2,843 SQFT
TYPE
Business Sale/Retail
BUSINESS SALE
Chris van Vliet*
chris@williamwright.ca
604-546-5555
STRATA LOT SALE
Zuber Jamal*
zuber@williamwright.ca 604-546-5555
715 EVANS COURT, KELOWNA
Shelby Kostyshen
Well kept, move-in ready industrial spaces with offices centrally located near Highway 97. +/- 1,630–4,613 SQFT.
205-15310 103A AVENUE, SURREY
Stephen Gammer, CCIM*
+/- 2,262 SQFT second floor walk up office with an open floor plan, a full kitchen, and bright windows.
120-1891 FOY STREET, ABBOTSFORD
David Hemmings
HACCP certified warehouse featuring dock and grade loading and a newly built ground floor office area. +/- 10,517 SQFT.
200 & 300-398 HARBOUR RD, VICTORIA
Harry Jones*
+/- 12,227 SQFT of Class A office space nestled within the Dockside Green neighbourhood of Victoria-West.
RECENT TRANSACTIONS Q3 2024
Matthew
350-522 SEVENTH ST, NEW WESTMINSTER
Nathan Armour*, Stathis Michael Savvis* +/- 1,108 SQFT turn-key
201-1800 TRANQUILLE RD, KAMLOOPS
Marianne DeCotiis*, Jeff Brown +/- 975 SQFT office unit at Brock Centre, anchored by Save-On-Foods, Shoppers Drug Mart, and Tim Hortons.
519 ELLICE STREET, VICTORIA
Harry Jones*
Light industrial property and auto business sale near downtown core with ample parking and large yard area. +/- 7,200 SQFT.
915 MCCLURE STREET, VICTORIA
Harry Jones*, Connor Braid*
Duplex property with prime development potential of up to 2.5 FSR in the coveted Fairfield neighbourhood. +/- 7,484 SQFT.
104-106 27090 GLOUCESTER WAY, LANGLEY
Steven Lam*, Matthew Ho*
Prime industrial property with three grade & dock loading doors and 26’ clear ceiling height. +/- 11,083 SQFT.
72 E PENDER STREET, VANCOUVER
Roderick MacKay
+/- 6,239 SQFT freestanding building with retail unit at the ground floor, two second floor office units, and a basement.
C-2571 QUADRA STREET, VICTORIA
Harry Jones*
+/- 1,241 SQFT of well-located retail space in the Hillside/Quadra area, easily accessible with high exposure.
104-2333 HUNTER ROAD, KELOWNA
Shelby Kostyshen, Jeff Hancock*
+/- 1,950 SQFT industrial unit, centrally located with an easy configuration and excellent signage opportunity.
VANCOUVER COMMERCIAL REAL ESTATE PODCAST
For all the curious minds interested in commercial real estate investing, grab a coffee and pull up a chair because we have exclusive stories and tips from commercial real estate brokers, investors, developers, economists, urban planners, and everyone in-between. From the successes and failures to the motivations and lessons learned, the Vancouver Commercial Real Estate Podcast is your insight into commercial real estate in Vancouver, Victoria, Kelowna, and beyond.
Hosted by Cory Wright, founder of William Wright Commercial, and co-hosts Adam and Matt Scalena of the Vancouver Real Estate Podcast, our podcast opens the door to real estate investing.
A Top 20 Apple Business Podcast as of May 2021
FEATURED EPISODE
VCREP #141: EXPLORING THE OKANAGAN REAL ESTATE MARKET WITH NICK RENTON
Cory and Melisa welcome Nick Renton to the show for a comprehensive overview of the BC and Okanagan real estate markets. With over 13 years of experience in credit and investment within retail and business banking, Nick brings a wealth of knowledge to the discussion.
Nick, now with William Wright Commercial, leverages his extensive background to uncover real estate opportunities across the Okanagan and BC. His career includes managing significant investment and credit portfolios, supporting business development initiatives, and helping clients with property purchases, leasehold improvements, and equipment financing.
Tune in to gain valuable insights from Nick as he shares his expertise on the current state and future prospects of the BC and Okanagan real estate markets.
PROVIDING REAL-TIME INSIGHT INTO TODAY’S COMMERCIAL REAL ESTATE INDUSTRY.
FEATURED EPISODE
VCREP #142: NAVIGATING THE FALL MARKET: INTEREST RATE DROPS AND WHAT’S NEXT WITH ALAN HAIGH
In this episode, Cory is joined by Alan Haigh from Impact
Commercial to unpack the recent interest rate drop and its impact on the real estate market. Al dives into how these changes are shaping the fall market, offering his expert insights on what investors and developers can expect in the coming months.
Tune in to hear Al's take on the future of rates, the opportunities they present, and how the real estate landscape might shift as we move into the new season. Level up!
FEATURED EPISODE
VCREP #143: WHAT’S NEXT IN COMMERCIAL REAL ESTATE AND INTEREST RATES WITH PETER LEUNG
This week, Cory and Melisa are joined by the Investorpreneur himself, Peter Leung, to dive deep into the latest interest rate trends and how they impact the commercial real estate market. Peter shares his insights on why now is the time to invest in commercial properties, which markets are catching his eye, and where he sees the most potential for growth. If you're looking to make smart investment moves, this episode is packed with valuable advice! Tune in to discover where Peter would put his money next.
