Market Information

Fall 2008

The IC & I ( Industrial, Commercial & Investment ) market is presently following suit with the residential market. Demand has slowed somewhat and inventory levels have increased. The residential markets have seen an oversupply of construction, especially in the condo market. It appears as if pricing in that sector could see some interesting turns over the winter months. Late 2007 and 2008 saw the IC & I market, specifically in Kelowna, witness some serious price increases in industrial land and commercial / industrial strata buildings. In the Spring of 2007 industrial lots in business parks were offered for sale at prices as low as $875,000.00 per acre. Early summer 2008 a couple of lots were re-sold at prices topping $1,350,000.00 per acre, a whopping 36.8 % higher than the original list prices. Strata units in 2007 were selling in the $150.00 per sq. ft. range. Currently you'd be hard pressed to find one under $185.00 SF. Again back in 2007, pre-sales in industrial and professional strata units were common. Today pre-sales are becoming a thing of the past. The market is rather sensitive at the moment. This doesn't necessarily suggest price reductions, it may, however, produce a slowdown in the development of certain types of commercial, industrial and professional buildings intended for lease or sale. The key thing to look at is activity. If you are looking to make a purchase it may be a wise time to do just that. The markets, both residential and commercial, as well as stock markets will inevitably bounce back. Timing is everything, so keep a watchful eye out, or call me as that's what I do every day.