Posted Aug 20, 2025, 2:15 AM
|
|
Registered User
|
|
Join Date: Dec 2015
Posts: 15,831
|
|
Quote:
Return-to-office mandates and brisk leasing at the high end of the market are breathing new life into the asset class, which saw low deal velocity during the height of the pandemic and the subsequent escalation of interest rates, he said.
“There are rumours, and there is a fair amount of office valuation activity happening. I think we will see more activity come the end of the summer, come September,” he said.
Leasing activity for premium offices is contributing to rising investment values and a greater willingness by lenders to finance deals such as West Pender Street, Emmott said.
“In Vancouver, the leasing market is actually extremely strong at the moment for the top-quality office,” he said.
“We are hearing from institutions that they are keen to buy again, and that is partly driven of course by the fact that banks are willing to lend money for those acquisitions,” he said.
|
Quote:
Emmot said it’s unclear what the cap rate—the measure of a property’s financial performance relative to its purchase price—will be on the deal.
“My understanding is that it’s in the high six-per-cent range,” he said.
Higher cap rates imply higher risk and reward, and lower cap rates imply safety and stable income.
Emmott said older, lower-grade office buildings face refurbishment, redevelopment or demolition, with residential conversion unlikely due to cost and code constraints.
“Soon, B and C-class buildings, some of them, will be in very little demand and landlords are definitely going to have to come up with solutions,” he said.
|
https://www.biv.com/news/real-estate/van...owntown-transaction-says-expert-11095887
|
Prev
Linear Mode
