!"##$%&'()'+,-(.' - - PowerPoint PPT Presentation

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!"##$%&'()*'+*,-(.' - - PowerPoint PPT Presentation

Jan 01, 2024 449 likes •602 views

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SLIDE 1

!"##$%&'()'+,-(.' .%/"012%0'' .1304'536373"!"#$%$&'%&"(')+,-)!".-//')0"1%,)%$2-%$/' 81&"9' :%;"94&"'<"=19!"3'+"4)0'5%,!"6$0'%&!"7)'-80,"9$/,:";58'0-)0" >%="0'<"==1?!"3'+"4)0'5%,!"<=+"6$0'%&!".>0?@$%"A"B$CD*/5" :%#@'!%%A"0%!"3'+"4)0'5%,!";8'0-%"E->%&" BCC'DEF'GF(DFH'D>(IJ'('<BBJ'(D'DEF'!KGK>G(H'BCCLIF' .(>JFD'

SLIDE 2

A Look at the Suburban Office Market

11.6% 14.4% 16.3% 5.7% 19.1% 17.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2010 2011 2012 2013 2014 2015 YTD

Suburban Historical Vacancy 2010-2015 YTD

Burnaby Richmond New Westminster North Shore Surrey Langley

SLIDE 3

A Look at the Suburban Office Market

(1,200,000) (1,000,000) (800,000) (600,000) (400,000) (200,000)

200,000

400,000 600,000 800,000

2011 2012 2013 2014 2015 YTD

Square Feet

Historical Absorption 2010- 2015 YTD Suburbs - 485,462 SF Total Absorption Downtown - 275,395 SF Total Absorption

SLIDE 4

Suburbs New Supply Under Construction

SOLO District Office

2025 Willingdon Ave, Burnaby

King George Station

9808-9900 King George Hwy, Surrey

TPC at South Point

3231 152nd St, Surrey

Gateway Place

13479 108th Ave, Surrey

3 Civic Plaza

10341 City Parkway, Surrey

CentreView

1308 Lonsdale Ave, North Vancouver

Developer: Appia Group Developer: PCI Developer: Avondale Development Developer: Bosa Properties Developer: Century Group Developer: Onni Group of Companies Estimated Completion Date: Q2 2016 Estimated Completion Date: Q4 2015 Estimated Completion Date: Q1 2017 Estimated Completion Date: Q2 2016 Estimated Completion Date: Q4 2016 Estimated Completion Date: Q4 2017 Approximate Size (SF): 230,000 Approximate Size (SF): 164,000 Approximate Size (SF): 116,000 Approximate Size (SF): 60,000 Approximate Size (SF): 50,000 Approximate Size (SF): 78,800 Approximate % Preleased: 9% Approximate % Preleased: 72% Approximate % Preleased:0% Approximate % Preleased: 0% Approximate % Preleased: 60% Approximate % Preleased: 0% N/A Tenants: Coast Capital Savings N/A N/A Tenants: Kwantlen Polytechnic University N/A

SLIDE 5

Suburbs New Supply Approved

Discovery Place Phase III

3555 Gilmore Way

GTC Professional Building

10189 153rd Street

City Centre 2

Market: Burnaby Market: Surrey Market: Surrey Developer: Kingswood Capital Developer: Landview Construction Developer: Lark Group Approximate Size (SF): 50,000 Approximate Size (SF): 100,000 Approximate Size (SF): 180,000 Status: Waiting for prelease commitment Status: Waiting for prelease commitment Status: Construction slated to being in upcoming months

SLIDE 6

Suburbs New Supply Proposed

Market Project Approximate Size (SF)

Burnaby Broadway Tech Centre East Campus 975,000 - Phased Development

f Five Buildings

4750 Kingsway (Metrotown) Two Office Towers Gilmore Station Up to 1,000,000 Brentwood Town Centre One or Two Office Towers Richmond 4700 No. 3 Road Nine-Storey Building Ampri International Gateway Centre 100,000 Surrey 9677/9681 King George Blvd 177,500 New Westminster 1010 Braid Street 360,000 North Vancouver 801 Harbourside 210,000

Total Approximately 3.9 million square feet

SLIDE 7

A Look at the Suburban Office Market

SLIDE 8

A Look at the Suburban Office Market

8 Large Block Availability -Suburbs (40,000 SF+)

Market Building Available Area sq. ft. Lease Type Class Headlease Burnaby Metrotower III 299,295 Headlease A Burnaby 3777 Kingsway 199,511 Sublease A Burnaby Nokia Building 62,400 Headlease A Burnaby Glenlyon Business Park 61,833 Headlease A Burnaby Metrotower II 56,518 Headlease A Burnaby 3500 Gilmore Way 56,201 Headlease A New Westminster Anvil Centre 137,330 Headlease A Richmond Fraserwood Corporate Centre 77,000 Headlease B Surrey Central City 77,162 Headlease A Surrey 15117 101st Avenue 56,413 Headlease B Total Space 10 1,083,663 * 9 blocks between 20,000 - 40,000 square feet

SLIDE 9

Suburban Office Insights

SLIDE 10

Suburban Office Insights - Migration

! Suburban leases are 75% larger than downtown leases
!Average suburban lease is 9,600 square feet
!Average downtown lease is 5,500 square feet
! Virtually no migration to downtown from suburban areas
! 94.3% of transaction activity affecting tenants in the suburbs is

either relocation to a suburban location or renewal

! Suburban tenants have a tendency to renew in place (39.0%) or

to relocate to another suburban location (40.7%)

SLIDE 11

Suburban Office Insights - Transit

! Tenants perceive that transit stations primarily offer amenities

!! Not just transit

! Many companies less concerned with proximity to mass transit

!! Bus service is viewed as desirable, parking is essential

! Be near employees’ homes
! Suburban tenants have suburban clients, projects

!! Few downtown contacts

SLIDE 12

Suburban Office Insights - Commuting

! 33% of workers say they would work an extra three hours per

week in exchange for a reasonable commute

! 50% state commute time would be main deciding factor
! Most Likely to Move Out of Core

!! 30-39 Year Olds !! New Parents !! $70K to $100K Income !! College & University Educated (Bachelor’s) !! Generation Y in this phase now

SLIDE 13

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