Industrial and Office Market Update Presentation

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Industrial and Office Market

Update Presentation

Andrew Petrozzi

Vice-President, Research (BC)

Avison Young

Metro Vancouver Regional

Planning & Agriculture Committee

February 7, 2014

4.1


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Metro Vancouver Industrial Market Vacancy

Q4 2013 Update

Richmond: 4%Surrey: 2.5%

Burnaby: 4.1%

Vancouver: 2.8%

Delta: 6.4%

Langley: 2.3%

Coquitlam: 4.4%

Port Coquitlam: 5.5%

Abbotsford: 3.7%

North Vancouver: 2.9%

New Westminster: 2.1%

Maple Ridge/Pitt Meadows: 1.6%

Metro Vancouver: 3.7%

Total SF: 186,833,932


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Metro Vancouver Industrial Market Update

New inventory: From Q3 2012 to Q3 2013, there was 2,952,943

sf of new industrial inventory added to Metro Vancouver.

Between Q3 2013 and Q4 2013, an additional 486,539 sf of new

product was delivered to the market.

Under construction: More than 2,000,000 sf of new industrial

space is currently under construction, primarily in Delta

(650,000 sf+) and Burnaby (420,000sf+) with more limitedactivity in Surrey (235,000+sf), Richmond (235,000sf+) and

Pitt Meadows (200k). Almost half of total square footage (904k)

under construction is in four developments.

Very limited large-bay opportunities: Only four spec projects in

excess of 100,000 sf are currently under construction:Boundary Bay Industrial Park (phase I) (Delta) 440K;

Millennium VI (Delta) 163k; Golden Ears Business Park

(Pitt Meadows) 200K; and Blackthorn IV (Surrey) 101k.


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Metro Vancouver Office Market

Metro Vancouver Office Inventory(Square Feet)

21,353,887

2,021,244

6,681,377

9,181,817

4,200,538

2,562,843

1,551,5721,477,580

Downtown

Yaletown

Broadway

Burnaby

Richmond

Surrey

New Westminster

North Shore


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Metro Vancouver Office Inventory (All Classes)

516,367407,197

-1,034,999

249,777

532,275640,019

-158,905

568,510

3.6% 2.7%

7.9% 8.4% 7.4%7.0%

7.8% 8.3%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%10%

-1,200,000

-1,000,000

-800,000

-600,000

-400,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,0001,200,000

2007 2008 2009 2010 2011 2012 2013 2014F

Vacancy

Rate(%)

Absorpt

ion(SF)

Absorption

Metro Vancouver recorded negative absorption for the first time since 2009


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Metro Vancouver Office Vacancy (Year End 2013)

5.70%

4.00%

5.10%

9.10%

15.40%

17.30%

9.30%8.50%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Downtown

Yaletown

Broadway

Burnab

y

Richmond

Surrey

New

Westminste

r

NorthShore

VacancyRatebyClass


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Downtown Vancouver Vacancy Forecast


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Next Generation of Downtown Towers


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Next Generation of Suburban Towers


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Next Generation of Suburban Towers (continued)


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5.3


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Subject Site

Proposed Extension


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Documents

Industrial and Office Market Update Presentation