4.

Industrial and Office Market Update Presentation

Andrew Petrozzi Vice-President, Research (BC) Avison Young Metro Vancouver Regional Thank you. Planning & Agriculture Committee February 7, 2014

avisonyoung.com 2013 Avison Young Inc. All rights reserved.

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

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 limited activity 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.

Metro Vancouver Office Market

Metro Vancouver Office Inventory
(Square Feet)
1,477,580

1,551,572 2,562,843 4,200,538

Downtown Yaletown 21,353,887 Broadway Burnaby Richmond

9,181,817

Surrey New Westminster North Shore 2,021,244 6,681,377

Metro Vancouver Office Market

Metro Vancouver Office Market

Metro Vancouver Office Inventory (All Classes)
1,200,000 1,000,000 800,000 600,000 516,367 Absorption (SF) 400,000 200,000 0 -200,000 -400,000 -600,000 -800,000 -1,000,000 -1,200,000 2007 2008 2009 2010 2011 2012 2013 2014F -6% -1,034,999 -8% -10% Absorptio n -158,905 3.6% 2.7% 532,275 407,197 249,777 2% 0% -2% -4% 640,019 568,510 7.9% 8.4% 7.4% 7.0% 7.8% 8.3% 10% 8% 6% 4% Vacancy Rate (%)

Metro Vancouver recorded negative absorption for the first time since 2009

Metro Vancouver Office Vacancy (Year End 2013)

20% 18% 16% Vacancy Rate by Class 14% 12% 10% 8% 6% 4% 2% 0% New Westminster Burnaby Broadway Richmond Surrey North Shore Downtown Yaletown
5.70% 4.00% 5.10% 9.10% 9.30% 8.50% 15.40% 17.30%

Downtown Vancouver Vacancy Forecast

Suburban Vancouver Vacancy Forecast

Next Generation of Downtown Towers

Next Generation of Suburban Towers

Next Generation of Suburban Towers (continued)

Andrew Petrozzi Vice-President, Research (BC) Avison Young andrew.petrozzi@avisonyoung.com 604.646.8392 www.avisonyoung.com

Thank you.

avisonyoung.com 2013 Avison Young Inc. All rights reserved.

5.3

Proposed Extension

Subject Site