Developers of Vernon project cautious as financing costs escalate
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A chill has descended on the commercial real estate market, as higher carrying costs are seeing developers exercise prudence when it comes to buying property that may take years to develop.
“It is really tough to sell dirt right now, just because the financing costs are so much higher, like exponentially higher,” Jeff Hudson, Senior Partner in H-M Group Commercial Real Estate told Vernon Matters.
Among others, Hudson is marketing property at the Port Okanagan Development on Okanagan Lake, at the corner of Okanagan Landing Road and Lakeshore Drive.
“I would say the interest has been reasonably strong, despite what is going on in the market. I think that is a lot of what drove it, the land prices were high but the financing was almost free,” Hudson added.
