Vancouver office space sells for record-breaking $2K a square foot
Stratospheric sale price ‘unexpected’
The recent sale price for office space in Vancouver has eclipsed the average price per square foot for Vancouver's already overheated condominium market.
Earlier this month, Bosa Development's 30-storey Waterfront Centre sold out in a week for over $2,000 per square foot.
The company declined an interview but, in a statement, said the building achieved that price point because it is unique.
"When you have a AAA office building at a prime location directly across from the transit hub for Metro Vancouver, waterfront views, world-class architecture and amenities — the project and demand for it are truly unique in the market," wrote Richard Weir, executive vice president for Bosa Development.
'AAA' cream of the crop
An expert in commercial real estate said 'AAA' class buildings are the cream of the crop — typically the newest, largest buildings in any given market, with amenities and operational systems that help to generate the buildings' classification.
"The closest comparable sale I'm aware of was the top floor of Terminal City Club's office tower ... at $1,328.00 per square foot in December of 2015," said Aaron Ulinder, senior vice president with CBRE Limited.
He categorized the extraordinary sale price as "unexpected."
The average price per square foot for commercial real estate in Vancouver is $830, according to Colliers Canada.
Statistics from the Real Estate Board of Greater Vancouver for October show the average price per square foot for a condo in Vancouver is $1,023.
Ulinder said the other factor is that office space in downtown Vancouver is in high demand — with the overall vacancy rate for premium office space under three per cent.
"There are only a handful of opportunities in the entire downtown core that could accommodate a tenancy greater than 20,000 square feet," he said.
A representative with Bosa wouldn't disclose who the purchasers were — but said one buyer bought an entire floor.
The tower will be built at 320 Granville St., adjacent to Waterfront station. It features curved glass walls, water and mountain views and will house a restaurant and retail space.
Bosa Development is holding onto the top 15 floors for future leasing. The building is set to open in 2021.