Real Estate Sales in Abbotsford
The overall real estate market in Abbotsford, including both residential and commercial real estate, is very strong; however, commercial real estate does not tend to take the same sharp turns as residential real estate. Commercial real estate sales are on a more gradual slope, which is due to business people making decisions for long-term business success. Purchasing decisions in commercial real estate tend not to be quick, snap decisions.
Industrial Real Estate in Abbotsford
The state of industrial real estate in Abbotsford is currently in a positive area as there is not a lot of this property type for sale or lease in Abbotsford. About five years ago there was an oversupply of industrial space, but there are not very many industrial real estate projects presently underway.
A challenge this sector faces is our limited land reserve, which impacts the pricing for industrial space. Additionally, increasingly more consumers are looking for industrial space beyond industrial park settings as sometimes yard space is required. We are seeing these same difficulties not only in Abbotsford but also in neighbouring municipalities.
Retail Space in Abbotsford
There is not a lot of vacant retail space in Abbotsford, but there is also not much pressure from businesses to take the spaces that are available. Rates for retail space are fairly average for what is expected from this period, and there appears to be room for negotiation for tenants, especially for used retail space.
Office Space in Abbotsford
At the moment there is an oversupply of office space in Abbotsford. Due to this, landlords are giving rental rate extremes to bring in quality tenants, offering very low first year base rents in hopes of selling the spaces down the road.
This problem will rectify itself in time, and the outlook is positive. In the latter part of 2015 and early 2016, we have seen a great increase in interest for office space—in fact, our team wrote more leases for offices space in January of 2016 than for the entire first half of 2015.
Investment Sales in Abbotsford
Investment properties are in high demand in Abbotsford; unfortunately, there is currently a low amount of inventory. Cap rates are between 5-6% on average. Investors are looking for investment buildings that are fully-leased with multiple tenants on long leases.
City of Abbotsford
The steps the City of Abbotsford has recently taken in the creation of its economic development website and GIS prospecting tool are going to assist greatly in attracting more businesses to the city. Abbotsford has much to offer potential businesses and investors including (but certainly not limited to) the Abbotsford International Airport and the city’s close proximity to the US border and Pacific Coast.
Our city has made great strides in marketing its many assets, and our population numbers and rental rates will rise. The city will grow naturally regardless of how it is marketed, but we can always do a better job in showing that Abbotsford is an ideal place to live and do business.
About CDW & Associates – RE/MAX Little Oak Realty, RE/MAX Commercial Real Estate
For over 26 years, Commercial REALTOR® Charles D. Wiebe and his team of associates have worked almost exclusively in the investment, commercial and industrial real estate market, providing the Fraser Valley of BC with industry-leading commercial real estate services. Connect with Charles and his team by clicking here.