Fortunately, this year appears to be a brighter spot for the market
Global trade tensions and a lacklustre cannabis market weighed upon Western Canada’s commercial real estate segment in the final stretch of 2019, according to a recent analysis by RE/MAX.
This was particularly evident in BC, where the cannabis industry failed to establish long-term roots.
“As a result, regions like Greater Vancouver, poised to become a cannabis hot spot in 2019, has experienced a year-over-year decrease in total dollar value of 69% across all commercial property types,” RE/MAX stated in its report.
Multiple factors converged to stymie the sector’s growth, RE/MAX of Western Canada regional executive VP Elton Ash said.
“While we anticipated the legalization of cannabis to drive prices and sales up in the commercial real estate market this year, a variety of factors including overall supply, stigmas, approval times and licensing restrictions have impeded commercial property growth across Western Canada – particularly in British Columbia,” Ash explained.
However, the light at the end of the tunnel now appears to be shining more brightly, along with much better prospects on the national level.
“Despite the pressures, we’re starting to see the market steady and 2020 looks more promising,” Ash noted, but with the caveat that “while we anticipate modest growth in 2020, uncertainty such as global trade disputes, and oil fluctuations will continue to loom over the region.”