CPTA & BC Assessment Market Value Forum Office, Retail, - - PowerPoint PPT Presentation

2015 Roll

CPTA & BC Assessment Market Value Forum

Office, Retail, Industrial & Hotel Portfolios October 30th, 2014

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OVERVIEW  Major Retail Properties Market Synopsis  Lower Mainland Industrial Market Synopsis  Office Market Synopsis  Hotel Market Synopsis

2015 Roll Major Retail Properties Market Synopsis

October 30, 2014

Presenters:

Ramaish Shah, Senior Appraiser, Fraser Valley Shari Jablonski, Senior Appraiser, Central Vancouver Island

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AGENDA  Recent Retail Transactions  2015 Assessment Preview Roll Summary  Discussion and Questions

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RECENT RETAIL TRANSACTIONS

Victoria - Hillside Centre

• Dec 2013
• $230,000,000(reported)
• 594,793SF
• $387/SF
• Anchored by Target,

Sears

• Est. Cap: 6%-6.25%

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RECENT RETAIL TRANSACTIONS

Victoria - Foul Bay

• Jan 2014
• $25,600,000
• 67,332 SF
• $380/SF
• Anchored by Save On
• Est. Cap: 5.5% - 5.75%

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RECENT RETAIL TRANSACTIONS

Ladysmith – Coronation Mall

• April 2014
• $19,225,000
• 77,772 SF
• $247/SF
• Major tenants: Save

On Foods, Rexall Drugs, BMO

• Est. Cap: 6.00 - 6.25%

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RECENT RETAIL TRANSACTIONS

Nanaimo – Longwood Station

• June 2014
• $33,100,000
• 105,925 SF
• $312/SF
• Major tenants: Thrifty

Foods, TD

• Est. Cap: 5.75 – 6.00%

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RECENT RETAIL TRANSACTIONS

Mill Bay Centre

• July 2014
• $19,255,000
• 88,428 SF
• $218/SF
• Major tenants: Thrifty

Foods, Royal Bank, Pharmasave

• Est. Cap: 6.25 – 6.50%

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RECENT RETAIL TRANSACTIONS

Campbell River – Timberline Village

• August 2014
• $10,300,000
• 29,592 SF
• $348/SF
• Major Tenants: Shoppers

Drug Mart, TD

• Est. Cap: 6.75 - 7.00%

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RECENT RETAIL TRANSACTIONS

Vancouver – False Creek Village

• December 2013
• $45,100,000
• 63,524 SF GLA
• $710/SQ.FT.
• Strata – Urban Fare, London Drugs,

and CRUs

• Est. Cap: 4.50%

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RECENT RETAIL TRANSACTIONS

Coquitlam - King Edward Centre

• May 22, 2014
• $13,565,000
• 81,647 SF GLA
• $166.14/SF
• Est. Cap: 6.25 – 6.50%

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RECENT RETAIL TRANSACTIONS

Delta – Ladner Harbour Centre

• June 2014
• $19,750,000
• 57,111 SF GLA
• $346/SF
• Lordco, BMO, Budget

Foods, & Pharmasave

• Est. Cap: 5.25 – 5.75%

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RECENT RETAIL TRANSACTIONS

Mission – Mission SmartCentre

• August 2013
• $34,450,000
• 117,063 SF GLA
• $294/SF
• Anchored by Walmart
• Est. Cap: 5.75 - 6.0%

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RECENT RETAIL TRANSACTIONS

Kamloops– RONA

• January 24, 2014
• $13,000,000
• 51,665 SF GLA
• $251/SF
• Est. Cap: 7.5-7.75%

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RECENT RETAIL TRANSACTIONS

Prince George – Pine Centre

• Dec 2013
• $130,000,000
• 482,031 SF
• $270/SF
• Anchored by Target,

Sport Chek

• Est. Cap: 6-6.50%

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2015 Retail Preliminary Value Direction Rental Rates Cap Rates Assessed Values

(0-5% increase)

SOUTH FRASER MAJOR INDUSTRIAL TRANSACTIONS 2010 - 2011

For your Major Retail Property Assessment enquires, please contact:

REGION Contact

Capital Office Bruce Bennett CV Island Shari Jablonski VSS Simone D'Souza North Fraser Harpreet Basra South Fraser Darren Jerke Fraser Valley Ramaish Shah Kamloops Ron Arnett Kelowna and the Okanagan Carl Walton Prince George and the North Beau Rossel Kootenays Paul Mrazek

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Discussion and Questions? Discussion and Questions?

Industrial Properties Market Synopsis

October 30, 2014

Presenters: Nick Damiani, Appraiser, North Fraser Region Clayton Olson, Appraiser, North Fraser Region

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AGENDA

• Recent Industrial Transactions
• Land
• Improved
• 2015 Assessment Preview Roll Summary
• Discussion and Questions

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $40,510,000

($4,402,000/acre)

• Sale Date: August 2014
• Land Size: 9.2 Acres
• Zoning: I2 – Light Industrial
• OCP: Light Industrial
• Sale Notes: Vendor Lease-Back

3150 & 3270 E Broadway, Vancouver

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $57,908,000

($1,445,000/acre)

• Sale Date: March 2014
• Land Size: 40.063 Acres
• Zoning: CDP6B2
• OCP: Industrial
• Sale Notes: Vendor Lease-Back

5-year development horizon

3405 Willingdon Ave, Burnaby

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $2,600,000

($2,680,000/acre)

• Sale Date: January 2014
• Land Size: 0.97 Acres
• Zoning: M2
• OCP: Industrial
• Sale Notes:Private Transaction

3149 Norland Ave, Burnaby

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $6,100,000 ($856,000/acre)
• Sale Date: April 2014
• Land Size: 7.13 Acres
• Zoning: A (Agricultural)
• OCP: M3 (Light Industrial)
• Sale Notes: 2 year development
• timeframe. 25% of lot lost to road

dedication.

860 Dominion Ave, Port Coquitlam

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $8,233,000 ($1,649,000/acre)
• Sale Date: October 2013
• Land Size: 4.991 Acres
• Zoning: I - Industrial
• OCP: Industrial

11200 Twigg Pl, Richmond

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $2,620,000 ($1,296,000/acre)
• Sale Date: December 2013
• Land Size: 2.021 Acres
• Zoning: CD
• OCP: Industrial

6633 154 St, Surrey

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $955,000 ($1,583,000/acre)
• Sale Date: March 2014
• Land Size: 0.603 Acres
• Zoning: IL
• OCP: Industrial

12344 83A Ave, Surrey

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $4,145,088 ($561,000/acre)
• Sale Date: January 2014
• Land Size: 7.39 Acres
• Zoning: CD14
• OCP: Heavy Industrial
• Sale Notes: Progress Way Industrial Park

44158 Progress Way, Chilliwack

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RECENT INDUSTRIAL TRANSACTIONS - LAND

• Sale Price: $2,000,000 ($1,105,000/acre)
• Sale Date: May 2014
• Land Size: 1.81 Acres
• Zoning: M2 (Industrial)
• OCP: Industrial
• Sale Notes: 2 adjacent sites, small shop
• n site. Purchased for land value.

44085/44109 Yale Rd, Chilliwack

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $7,800,000 ($248/sf)
• Sale Date: April 2014
• GLA: 31,410sf
• Year Built: 1973, 2000, 2013
• Site Coverage: 56%
• Estimate CAP: 4.50%-5.00%

8665 Barnard St, Vancouver

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $3,625,000 ($177/sf)
• Sale Date: March 2014
• GLA: 20,496sf
• Year Built: 1968
• Site Coverage: 109%
• Estimate CAP: 4.25%-4.75%

1345 Grant St, Vancouver

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $47,600,000 ($201/sf)
• Sale Date: December 2013
• GLA: 236,398sf
• Year Built: 2010
• Site Coverage: 46%
• Estimate CAP: 5.00%-5.50%
• Sale Notes: Vendor Lease-Back

8131 & 8183 Wiggins St, Burnaby

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $7,125,000 ($125/sf)
• Sale Date: April 2014
• GLA: 56,859sf
• Year Built: 1969
• Site Coverage: 44%
• Estimate CAP: 5.25%-5.75%
• Sale Notes: Vacant

7039 Winston St, Burnaby

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $18,600,000 ($216/sf)
• Sale Date: November 2013
• GLA: 85,913sf
• Year Built: 1990
• Site Coverage: 39%
• Estimate CAP: 5.50%-5.75%
• Sale Notes: Share Transfer

2820 Production Way, Burnaby

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $7,100,000 ($133/sf)
• Sale Date: April 2014
• GLA: 53,200sf
• Year Built: 1973
• Site Coverage: 34%
• Estimate CAP: 5.75%-6.25%
• Sale Notes: 10 stand-alone warehouses.

115 Schoolhouse St, Coquitlam

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $8,900,000 ($218/sf)
• Sale Date: June 2014
• GLA: 40,763sf
• Year Built: 1975
• Site Coverage: 58%
• Estimate CAP: 4.25%-4.50%
• Sale Notes: Multi-Tenanted

12111 Bridgeport Rd, Richmond

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RECENT INDUSTRIAL TRANSACTIONS - IMPROVED

• Sale Price: $4,700,000 ($152/sf)
• Sale Date: Sept 2013
• GLA: 30,859sf
• Year Built: 2001
• Site Coverage: 43%
• Estimate CAP: 4.50%-4.75%
• Sale Notes: Owner-Occupancy

7601 MacDonald Rd, Delta

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2015 INDUSTRIAL PRELIMINARY VALUE DIRECTION Land Values

(5-10% increase)

Rental Rates Cap Rates Assessed Values

(5-10% increase)

SOUTH FRASER MAJOR INDUSTRIAL TRANSACTIONS 2010 - 2011

For your Industrial Property Assessment inquires, please contact: 1-866-valueBC (825-8322) Vancouver: Mario Lee (Ext. 09574) North Fraser: Richard Kwan (Ext. 10244) South Fraser: Brent Sear (Ext. 14236) Fraser Valley: Harpreet Bhullar (Ext. 15270)

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Discussion and Questions? Discussion and Questions?

Office Market Synopsis

October 30th, 2014

Presenters: Bruce Evans-Atkinson, Senior Appraiser, VSS Region Simone D’Souza , Senior Appraiser, VSS Region

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AGENDA  Major Project Under Construction  Recent Office Transactions  2015 Preview Assessment Roll Summary  Discussion and Questions

MAJOR OFFICE PROJECTS UNDER CONSTRUCTION

 DOWNTOWN Size Completion Year Telus Gardens 480, 000 s.f. 2015 745 Thurlow St 370,000 s.f. 2015 1021 West Hastings St 260,000 s.f. 2014 725 Granville St 250,000 s.f. 2015 980 Howe St 250,000 s.f. 2015 Rogers Arena West 110,000 s.f. 2015

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MAJOR OFFICE PROJECTS UNDER CONSTRUCTION

MAJOR OFFICE SALES

1500 West Georgia Street

• B-class office building
• $120,500,000
• 07 August 2014
• 193,092 SF GLA
• $624/SF GLA

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MAJOR OFFICE SALES

MAJOR OFFICE SALES

1281 West Georgia Street

• C-class office building
• $36,000,000
• 31 July 2014
• 72,257 SF GLA
• $498/SF GLA

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MAJOR OFFICE SALES

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• Sale Price: $86,900,000 (50% sale)
• Sale Date: June 2014
• Class: A
• GLA: 686,697sf
• Year Built: 1976, 1981
• Estimated CAP: 6.0% - 6.25%
• Sale Notes: Multi Tenant

3777 Kingsway, Burnaby

RECENT OFFICE TRANSACTIONS

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RECENT OFFICE TRANSACTIONS

• Sale Price: $32,471,500
• Sale Date: Nov 2013
• Class: A
• GLA: 71,551sf
• Year Built: 1999
• Estimated CAP: 4.0% - 4.25%
• Sale Notes: Multi Tenant (incl. Royal Bank

Regional Office)

628 Sixth Avenue, New Westminster

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RECENT OFFICE TRANSACTIONS

• Sale Price: $80,000,000
• Sale Date: Aug 2014
• Class: AAA
• GLA: 147,654sf
• Year Built: 2009
• Estimated CAP: 4.00 – 4.25%
• Sale Notes: Share Transfer, HSBC Tenant, LEED

Platinum

3383 Gilmore Way, Burnaby

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2015 Office Preliminary Value Direction Rental Rates Cap Rates Assessed Values

(5-10% increase)

Vancouver Core

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2015 Roll Preliminary Valuation Parameters

CLASS RENT VACANCY EXPENSE CAP RATE AAA $34 to $38 5 % 5 % 5.50 % A $31 to $35 5 % 5 % 5.50 % B $24 to $28 6 % 5 % 5.00 - 5.50% C $19 to $24 7% 6 % 5.00 - 5.50 % Notes:

 Rental ranges are typical for the majority blended space over the entire building  Rents reflect typical lease terms for the different building classes.  Rent analyzed on as is turnkey basis, averaged over the term, less free rent  Space standards consistently applied for local markets (generally BOMA)  Cap rates are analyzed based on adjusted actual and economic

Vancouver Core

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2015 Office Preliminary Value Direction Rental Rates Cap Rates

(0.25-0.50% decrease)

Assessed Values

(5-10% increase)

Suburban

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2015 Office Preliminary Value Parameters

Notes:

• Above rent ranges are typical for the majority blended space over the entire building
• Rents reflect typical lease terms for the different building classes
• Rent analyzed on as is turnkey basis, averaged over the term, less free rent
• Space standards consistently applied for local markets (generally BOMA)
• Cap rates analyzed based on the adjusted actual and economic

CLASS RENT VACANCY EXPENSE CAP RATE A $15.00 - $22.50 5% - 10% 5% - 10% 5.25 - 6.25 B $12.50 - $18.00 5% - 10% 5% - 10% 5.25 - 6.25 C $10.00 - $14.50 5% - 10% 5% - 10% 5.00 - 6.75

Suburban

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Discussion and Questions? Discussion and Questions?

Hotel Market Synopsis

October 30, 2014

Presenter: David Deng, Senior Appraiser, VSS Region

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AGENDA  Recent Hotel Transactions  Hotels under Construction  2015 Assessment Preview Roll Summary  Discussions and Questions

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RECENT HOTEL TRANSACTIONS

Heritage River Inn – Campbell River

• 42 Rooms
• Sale Price $3,075,000
• Sale Date May 2014
• $73,000 per room
• Est. Cap: 6.7%

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RECENT HOTEL TRANSACTIONS

Holiday Inn Express – Kamloops

• 80 Rooms
• Sale Price $8,900,000
• Sale Date April 2014
• $111,250 per room
• Est. Cap: 7.6% – 8.1%

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RECENT HOTEL TRANSACTIONS

Super 8 Motel Merritt

• 33 Room Resort Hotel
• Sale Price $2,550,000
• Sale Date June 2014
• $77,000 per room
• Est. Cap: 7.5%

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RECENT HOTEL TRANSACTIONS

Super 8 Williams Lake

• 53 Rooms
• Sale Price $4,100,000
• Sale Date July 2014
• $77,000 per room
• Est. Cap: 8%

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RECENT HOTEL TRANSACTIONS

Super 8 Abbotsford

• 99 Rooms
• Sale Price $11,500,000
• Sale Date Sep 2013
• $116,000 per room
• Est. Cap: 8%

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RECENT HOTEL TRANSACTIONS

Best Western Plus Abercorn Inn Richmond

• 98 Rooms
• Sale Price $14,250,000
• $145,400 per room
• Reported Cap Rate: 5%
• Est. Cap: 4.75%

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RECENT HOTEL TRANSACTIONS

Westin Bayshore Downtown Vancouver

• 511 Rooms
• Sale Price $140,760,000
• Sale Date June 2013
• $275,000 per room
• Cap Rate: 5%

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HOTELS UNDER CONSTRUCTION

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HOTELS UNDER CONSTRUCTION

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2015 Hotel Preliminary Value Direction RevPAR Cap Rate Assessed Value

(3% – 6% increase)

Capital Region

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2015 Hotel Preliminary Value Direction RevPAR Cap Rate Assessed Value

(No increase)

South Fraser Region

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2015 Hotel Preliminary Value Direction RevPAR Cap Rate Assessed Value

(15% increase)

VSS Region

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For your hotel assessment pre-roll consultation and enquiries, please contact: Vancouver Sea-to-Sky David Deng South Fraser John Snow Capital Chris Sturrock Vancouver Island Shandra McInnes Okanagan Jay Walker Thompson Cariboo Ron Arnett North Fran Berry Kootenays Paul Mrazek

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Discussion and Questions?

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If there are any questions, please contact: