The Bosa Waterfront Centre office building in Vancouver set a new record for the most expensive office building in the city after its selling price reached more than $2,000 per square foot.
Aaron Ulinder, senior vice president with CBRE Limited, said that the last time a commercial building for sale in Vancouver closed at a record per-square-foot price happened in December 2015. Terminal City Club’s top fetched $1,328.00 per square foot.
Ulinder said that the price per square foot for the Bosa Waterfront Centre reflects its status as an AAA building, which is one of the newest and tallest structures in any market. Richard Weir, Bosa Development executive vice president, also said that demand for AAA office towers are “truly unique in the market” when these are on a prime area near transportation centers in the city, and vancouverbusinessbrokers.ca agrees.
Colliers Canada claimed that buyers of commercial real estate space pay an average of $830 per square foot in Vancouver is $830. The acquisition price for Bosa Waterfront Centre only shows that demand for office space remains high, amid a vacancy rate of less than 3%, according to Ulinder.
Bosa Development will continue to own the top 15 stories of the 30-floor Bosa Waterfront Centre. The company clarified rumors that foreign buyers bought the majority of the other half. It noted that 95% of buyers comprised local investors, while offshore entities consisted of the remainder.
It took only less than seven days to sell 50% of a 355,000-square-foot office building at 320 Granville. The swift sale process further indicated the demand for commercial space. During the third quarter of 2017, office building projects in Vancouver spanned 1.6 million square feet.
The record price for the Bosa Waterfront Centre showed that buyers are willing to pay a premium for prime real estate in Vancouver, especially if it is strategically located within the city.