Metro Vancouver Investment Report

Research & Forecast Report METRO VANCOUVER INVESTMENT REPORT

First Half 2018 Table of Contents

Introduction...... 1 Investment Overviews Office...... 2 Multifamily...... 3 Retail...... 4 Industrial...... 5

Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International Metro Vancouver Investment Report

Introduction

The Metro Vancouver 2018 Half-Year Investment Report examines The first half of 2018 also saw a continuation of Vancouver’s long all commercial real estate investment activity (excluding non- run of rising prices. The record pricing witnessed in 2018 to date market transactions) across the four major asset classes: Office, reflected a shift in rationale behind some acquisitions. In some Multifamily, Retail, and Industrial. In addition to providing coverage instances, purchasers are aggressively pricing opportunities based of the most recent market transactions, we offer insight and on their potential for long term redevelopment rather than on their analysis regarding trends in the Metro Vancouver marketplace. ability to generate income / yield. This is resulting in sustained cap rate compression across most asset classes, despite lead Economic Overview: Metro Vancouver indicators that would normally suggest cap rate softening such as an increase in interest rates and bond rates this year. The Bank of Canada has increased its key interest rate three times within the last 12 months. Despite these increases to borrowing Another notable trend this year is the uptick in the number of costs, capitalization rates have tightened or remained steady strata (also referred to as ‘condo’) projects being developed across the major asset classes and represent record lows across and marketed across Greater Vancouver. With historically low Metro Vancouver. vacancy across most asset classes, many of these projects are attractive to owner-occupiers unable to lease suitable facilities, Metro Vancouver Investment Snapshot although investors remain active. With these buyers purchasing space for their own business needs rather than to generate a There was significant investment activity across all asset classes return, pricing for strata is also now at record levels. With the over the first half of 2018, with a range of buyer profiles active number of strata projects now underway or proposed however, in reviewing and bidding on opportunities. The overall total understanding the depth of the ‘end purchaser’ market is investment volume for the first half of 2018 was approximately $4 paramount for developers considering new projects. billion across 644 transactions (source: RealNet & Colliers Research).

Year to Date Statistics

ASSET CLASS TRANSACTION COUNT TRANSACTION VOLUME

1. Office 126 $458,277,228 2. Multifamily 78 $1,371,411,319 3. Retail 194 $1,301,119,601 4. Industrial 246 $991,551,839

Total 644 $4,149,359,987

Average Capitalization Rate and Bond Yields 10.0% 9.0% 8.0% 7.0% BondYield \ 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%

CapitalizationRate 0.0%

Industr ia l Retail Office Multifamily BOC 10-Year Bond Yields BOC 5-Year Bond Yields

Source: Colliers Research

1 Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International Office

The total value of office sales in the first half of 2018 was Year Over Year Office Investment approximately $458 million, from 126 transactions. While this is nearly 80% less than the $2 billion in office sales in the first half $3,000,000,000 200 of 2017 it is important to note that Cadillac Fairview’s $471 million 180 portfolio sale was recorded early last year. $2,500,000,000 160

140 Metro Vancouver office strata development is starting to boom due $2,000,000,000 to extremely high property values, low vacancy rates, and creative 120 development strategies. Office strata averaged $222 per square $1,500,000,000 100 foot only two years ago; today, this product can sell as high as 80

$1,000,000,000 $1,100 per square foot in Mount Pleasant and $1,000 in Burnaby 60 and Richmond. 40 $500,000,000 Highlights 20 $0 0 >> The downtown office strata market was a hot topic leading into 2018, 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 following the sale of the Bosa Waterfront Centre in November 2017. YTD Transaction Volume Deal Count Bosa Development sold down half of the 335,000 square foot, 30-storey Source: RealNet & Colliers Research tower at 320 Granville Street as strata while retaining the top 15 floors for future leasing. These offices ranged in size from 598 square feet to full floors (9,000 square feet). The office space reportedly sold for just over $2,000 per square foot, the highest price the Vancouver office

market has ever seen. Buntzen Lake Capilano Lake >> One of the largest office building transactions in 2018 was the sale of 555

West r m D r d

h R A g u o n Vancouver o n r a a

r l i i o D

p d b s a mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd L S Robson Street, purchased by GWL Realty Advisors from Avigilon. GWL Queens Ave ev e ls Delbrook BC RAIL Mathers Ave d Pitt Lake Highway R E 29th St ur Inglewood Ave o 21st St 11th St 11th m y Fulton Ave 1 Hyannis Dr e

S e Lynn Valley Rd North t v

15th St

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Vancouver Rd Dr y

Mountain Hwy Larson Rd a B Realty purchased the building for $107.5 million and arranged a long term l 15th St l e

ge Lonsdale Ave d Ave Chestereld d w Harrison Lake i W 13th St Ave St Georges R d

r t e

B e B Berkley Rd Berkley

Welch St Mountain Hwy o e W W 3rd St E Sunnyside Rd Sunnyside E Grand Blvd E Grand t o Mt Seymour a K l Pkwy Harbourside Dr e l E i G s ith Harbourside Pl p L s l Rd East Rd n an o a E 3rd St i Lonsdale Quay de Rd Cove Deep L Brooksbank Ave ollarton Rd D Dollarton Hwy Main St d E Esplanade Ir l o OW Riverside Dr Port Moody sale lease-back agreement. 99 n Rd

W il r

o p

r k A

r Burrard Inlet s Dr a M Panoram

e m H

o Ioco Rd er

r it

1 i a

a Ba

l r g n

B et

H C.P.R. e

English Bay r ig

i h

McGill St d way g Eton St M

Burrard 7A DenmanDavie St St Waterfront e o La u nd Wy Pinetree n s Woodland Pipeline Rd t Pacic St Dundas St d S t o a w Lafarge Lake - Douglas y Victoria Dr i ine Dr Granville n Johnson St s ar Vancouver n s M E Hastings Street e B >> Surrey’s City Centre 2 hit the market earlier this year, selling premium City Centre e W

N D Stadium/Chinatown v Simon Fraser h

d r Port Moody Centre g Lincoln Coast Meridian Rd Parker St University u Stave Lake Venables St Curtis St St. Johns St a Yaletown/ Coquitlam Central h Richardson Rd Poin Roundhouse Port Moody Centre Inlet Centre Coquitlam S t G Main St rey Rd Cornwall St G Central Cedar Dr 3 a

Clark Dr g University of W 4th Ave Olympic Village l

Wesbrook Mall G Ave Gilmore r 1st Ave Willingdon Ave ar Prairie Ave Holdom St Gerald Ave Gerald e Sperling St d McNeil Rd at North VCC/Clark i W British Columbia ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1

Renfrew St Renfrew Holdom Clarke Rd 4 office strata in the Health and Technology District. Since the launch, the Broadway/ Commercial Port Coquitlam 4 Broadway Como Lake Ave City Hall E Broadway Burquitlam th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Sperling/ Coquitlam

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

Kingsway Ave

Lake City Way W

Canada Wy n

Kingsway r S Production Way/ i

e W a

University t n i Ridge M n

r Lougheed Highway

a u r King Edward Ave King Lougheed Lougheed a o i Sprott St Linton St 7 n Nanaimo St

Edward St Rupert Town Centre M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e Vancouver Rd Harris u Arbutus St l building has sold 75% of this units available with City Centre 1 at 95% d B 29th Ave R Crown St Crown St Dunbar T

Blenheim St Harrison Hot Springs Rd Springs Hot Harrison Deer Lake Pkwy ra r St e W 33rd Ave E 33rd Ave ns Coquitlam Fern Cr

Rd Neaves

Ca i n R

Broadway St Broadway 7

ad Dewdney Trunk Rd McCallum Rd

Joyce a t 132nd Ave

Hig 1 i 7 9 hw P Oakridge/41st Ave ay Brunette Ave W 41st Ave E 41st Ave Grange St Burnaby Braid Shaughnessy North Rd W Boulevard United Blvd 128th Ave 128th Ave Earles St Pitt Patterson Hartley Rd 7 occupied. Rd Cameron W 49th Ave Langara/ 7 6th St Mary Hill Bypass Meadows 49th Ave 49th Ave E Metrotown Hartley Ave Lougheed Hwy

Fraser St Fraser Knight St Canada Wy

Main St St Tyne Sapperton 124th Ave Victoria Dr P Pitt d Imperial St o R

r St 203rd 248th St Oak St Meadows Granville Street Spratt Rd Spratt

Royal Rd Lake Stave W 57th Ave Rd Woolridge 256th St t r 227th St 224th St 216th St St Laity e

M 232nd St W 57th Ave Rd Boundary Oak 10th Ave DOUGLAS t

Cambie St Kingswa s y a C.P.R. Harrison Bay 264th St

t n Dewdney Trunk Rd e River ISLAND Dewdney Trunk Rd v S 8th Ave n PITT MEADOWS l

y Limbert Rd

Rumble St B Hammond Rd S t r AIRPORT o 6th Ave i Nelson Ave i AGASSIZ l d Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr NEW e Meadows d Knight St Bridge 17 R a W 70th Ave N Kent Ave S Fraser Perimeter Rd iver Port n Royal Oak Ave Royal R e P Fraser Wy Haney y Gilley Ave at B e MITCHELL u yp g Kent Ave S Marine Wy ds l 112th Ave 207th St id O WESTMINSTERar on Queens Ave Columbia lo 2 as r a w W s k ISLAND Twigg Pl e y Bridge 112th Ave B t Scott Rd S VANCOUVER S e Bridge Rd g v t New 110th Ave C.N 112th A 112th Ave n INTERNATIONAL i B 22nd St Westminster .R. HOG Templeton a rid Grosvenor Rd L River d g ISLAND AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd BARNSTON k YVR C.N.R. a Wy Bridgeport L Airport Conachie 91A ISLAND Grant Mc e WINDERMERE ISLAND S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave t r 104th Ave FAIRFIELD SEA 99 North Surrey S a Central er Farms Rd Farms ISLAND iv i ISLAND R Rd t ll K e O Aberdeen Cambie Rd Wilson St e b 256th St y Bridge Golden Ears 102nd Ave ys p

208th St t m f W 100th Ave 100th Ave o Dale Rd a r n C

G ke King George 100th Ave e a Q A Russ B 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway

o e W d 280th St r e Rd R Alderbridge Wy i y Richmond Annacis Highway n l 156th St g ANNACIS 148th St 160th St e s 96th Ave s h s Castleman Rd 9

Lansdowne Albion Ferry r i bo 96th Ave o t No 1 r n e a o ISLAND 96th Ave Richards Ave A R

d River Rd u 99A C d River Rd g r pe 91 De o a n

h l

w Rd Young 192nd St C.N.R. t H l d Farms Rd Rd McGrath

i B MCMILLAN S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av ISLAND T Yal a r e R Investment Snapshot n A u Wellington Ave d e w n d l k y ve e Rd Chapman Rd 120th St 128th St 132nd St Ferndale Ave Cli x a Granville Ave Hatzic D y F 88th Ave 88th Ave CRESCENT H erw W r Fraser River 1A No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t s 88th Ave ISLAND Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

B y 7 Wolfe Rd Blundell Rd Rd 216th St Topham r W Glover Rd i l 84th Ave d 84th Ave e 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd e o Mission St Cedar N Rd lliwack Mtn Rd Rd Ford Richmond C.N.R. Nicomen Island Trunk Chi Francis Rd C.N.R. 22nd Ave Chilliwack Central Rd No. 1 Rd No. 4 Rd No. 3 Rd No. 5 Rd No. 6 Rd C.N.R. Annacis King George Highway N R Pacic Highway Harvie Rd

Gilbert Rd i 80th Ave i Eagle Rd c Metro Vancouver Office St v o Mid-Year 2017 Mid-Year 2018 Trend Ave Railway e m Huston Rd 80th Ave Brown Rd Brown TILBURY e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run ISLAND 80th Ave 7 Tyler d k Rd 1

Williams Rd H H T 14th Ave S o e Duke Rd t i 80th Ave o p g 76th Ave S co 76th Ave l ut Fraser River h e e h Fraser - Delta Thruway Fraser t Wy 7 t k

w g C.P.R. a 208th St 216th St 192nd St 200th St R Trans Canada Hwy

a r L Hurd St Hurd d y a Prairie Central Rd 112th St Scott Rd Scott

Vantage e 76th St 80th St p 168th St 176th St 184th St Steveston Hwy h 7th Ave v W Yale Rd 144th St 140th St

a 152nd St

River Rd 72nd Ave Newton Rd T t Progress Wy 72nd Ave 240th St r Surrey S Luckakuck Wy 72nd Ave V Wren St Wren 72nd Ave 72nd Ave 1st Ave Industrial Wy e d

Mission d

72nd St McTavish Rd Newton Rd C e

Moncton St Gibson Rd No. 2 Rd r HWY 10 Rd Prest Rd Banford Shell Rd 91 64th Ave 10 City h

68th Ave SOUTHERN i Number of Deals R George Massey Tunnel BYPASS lli

77 126 d w ac R

Trans Canada Highway CHILLIWACK k i

17 RAILWAY W Yale Rd v e r

Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d Satchell St Satchell a MATSQUI Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. ISLAND Page Rd i

272nd St 1 Peters Rd

60th Ave Delta C.N.R. d 60th Ave Rd Chadsey S Sumas Rd Bailey Rd Logan Ave 58th Ave 148th St 99 Transaction Volume (CAD) 140th St Fore Rd 60th Ave $2,076,745,768 $458,277,228 56th Ave 11 Watson Rd Promontory Rd 56th Ave W Douglas Cr d B.C. RAIL 208th St 56th Ave South Fraser Perimeter Road Perimeter South Fraser LANGLEY Harris Rd R r Mission-abbotsford Highway 56th Ave e 72nd St AIRPORT Sumas Prairie Rd Sumas Prairie iv Hopedale Rd R 53rd Ave Keith Wilson Rd Station Rd Colebrook Rd 160th St

Robertson Rd Robertson ook Rd Westham Island Rd olebr n Rd C 304th St 296th St 10 Ladner Trunk Road St 288th Sinclair Rd 203rd St 203rd 48th Ave Fraser Highway d G Gladwi R ra Riverside Rd Bell Rd in WESTHAM ISLAND de Cr Townshipline Rd unta C 17A SOUTHERN RAILWAY 15 48th Ave r Mo h Source: RealNet & Colliers Research 48th Ave No. 3 Rd de ill Dawson Rd Ved iw a r Old Yale Rd ck D L a r Rd ke u Straiton R h Clayburn Rd 44 Ave d

t Yarrow Central Rd r

328th St A 64th St 17 40th Ave 40th Ave 40th Ave 40th Ave 40th Ave Mud Bay Downes Rd S BOUNDARY BAY um Fireclay Rd No. 4 Rd 36th Ave as AIRPORT M Pacic Highway

34B Ave t n North Parallel C.P.R.

Abbotsford R South Parallel

d Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy 32nd Ave Rd Boundary R 32nd Ave rn t ybu Lake

53rd St 53rd la d n 32nd Ave C R Atkinson Rd ce Su Old No. 5 Rd res m tn C as M 28th Ave S F W s

27B Ave w t erg a a 160th St Rd Clearbrook 168th St 184th St us m ie 28th Ave 28th Ave on y u v W S y 99 y er a South Fraser Way w B o 1A L 52nd St 56th St 188th St Old Yale 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave

Ross Rd Ross Trans Canada Hwy Mt. Lehman Rd 152nd St 124th St 140th St 128th St

20th Ave 20th Ave McMillan Rd 20th Ave Marshall Rd Hwy Interprovincial 20th Ave 13

Capitalization Rates 192nd St 1 Dixon Rd Dixon

16th Ave 08th St 232nd St 2 240th St

216th St 200th St St 200th 224th St 248th St 256th St 272nd St White Rock Rd Lefeuvre Bradner Rd King Rd 16th Ave Wells Line Rd North Blu Rd 16th Ave 16th Ave Marine Dr 12th Ave Peardonville Rd

B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

HIGH LOW 320th St n d AIRPORT

2018 Metro Vancouver Office McCallum Rd a r Cole Rd Rd McDermott Marion Rd Rd Powerhouse Whatcom Rd Whatcom y 264th St B ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

Causeway Rd Roberts Point B.N.R. 8th Ave Notable Sales d BC FERRIES 176th St

TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA Downtown 4.50% 3.50% U.S.A. U.S.A. U.S.A. Suburb 6.50% 4.75%

Source: Colliers 2018 Q2 Cap Rate Report - Class A

Notable Sales

PROPERTY ADDRESS MUNICIPALITY BUILDING SIZE (SF) PRICE PURCHASER VENDOR

1. 555 Robson Street Vancouver 135,000 $107,500,000 GWL Realty Advisors Avigilon

2. 10470 152 Street Surrey 123,885 $51,000,000 Pacific Reach Properties Investors Group

3. 4170 Still Creek Drive Burnaby 131,289 $48,250,000 Spear Street Capital Healthcare of Ontario Pension Plan

Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International 2 Multifamily

Interest in Metro Vancouver multifamily assets remains steady Year Over Year Multifamily Investment across all investor types. Purpose built rentals and total apartment sales reached $1.371 billion in the first half of 2018 across 78 transactions. $3,500,000,000 250

$3,000,000,000 Highlights 200 $2,500,000,000 >> Ottmann Properties sold their West End Portfolio, in a deal 150 brokered by Colliers International for a price of $247.92 million $2,000,000,000 with a 2.61% capitalization rate and a value of $534,682 per $1,500,000,000 unit. This acquisiton for Starlight Investments totaled 456 100 units across four buildings for a total of 264,668 square feet, $1,000,000,000 representing the biggest multifamily sale in 2018 to date. 50 $500,000,000 >> The second largest market sale in 2018 to date was the sale of Oceania Court, one of the largest mid-rise apartment complexes $- - 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD in Burnaby. The sale consisted of a four building, 117-unit 2018

apartment complex on over 2.7 acres of land. Anthem Properties YTD Apartment Count Buntzen purchased Oceania Court for $32.5 million. Lake Capilano >> The City of Vancouver has 27 view cones that limit building Lake Source: RealNet & Colliers Research heights to ensure the views of the North Shore mountains and

West r m D r d

h R A g the water are protected. In the past, architects and developers u o n Vancouver o n r a a

r l i i o D

p d b s a mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd L S have had to strictly adhere to view cone policies. Recently, City Queens Ave ev e ls Delbrook BC RAIL Mathers Ave d Pitt Lake Highway R E 29th St ur Inglewood Ave o 21st St 11th St 11th m y Fulton Ave 1 Hyannis Dr e Council approved a building plan that will exceed the view cone S e Lynn Valley Rd North t v

15th St

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Vancouver Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

limit. In order for the new development proposal to be passed, ge Lonsdale Ave d Ave Chestereld d w Harrison Lake i W 13th St Ave St Georges R d

r t e 1 e

B B Berkley Rd Berkley

Welch St Mountain Hwy o e W W 3rd St E Sunnyside Rd Sunnyside E Grand Blvd E Grand t o Mt Seymour a K l Pkwy Harbourside Dr e l E i G s ith Harbourside Pl p L s la Rd East Rd PavCo will have to compromise by committing 100% of their n na E 3rd St o i Lonsdale Quay de Rd Cove Deep L Brooksbank Ave ollarton Rd D Dollarton Hwy Main St d E Esplanade Ir l o OW Riverside Dr Port Moody 99 n Rd

W il r

o 400 foot tower at 777 Pacific Boulevard as rental housing. p

3 k A

r Burrard Inlet s Dr a M Panoram

e m H

Pavco has yet to decide if they will proceed on this basis. 1 o Ioco Rd e r

r it

i a

a Ba

l r g n

B et

H C.P.R. e

English Bay r ig

i h

McGill St d way g Eton St M

Burrard 2 7A DenmanDavie St St Waterfront e o La u nd Wy Pinetree n s Woodland Pipeline Rd t Pacic St Dundas St d S t o a w Lafarge Lake - Douglas y Victoria Dr i ine Dr Granville n Johnson St s ar Vancouver n s M E Hastings Street e B W City Centre e

N D Stadium/Chinatown v Simon Fraser h

Clark Dr g University of W 4th Ave Olympic Village l

Renfrew St Renfrew Holdom Clarke Rd 4 Broadway/ Broadway Commercial Como Lake Ave Port Coquitlam 4 City Hall E Broadway Burquitlam th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Sperling/ Coquitlam

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

Kingsway Ave

Lake City Way W

Canada Wy n

Kingsway r S Production Way/ i

e W a

University t n i Ridge M n

r Lougheed Highway

a u r King Edward Ave King Lougheed Lougheed a o i Sprott St Linton St 7 n Nanaimo St

Edward St Rupert Town Centre M Town Centre Rd Gatensbury e Winston St D Macdonald St Nanaimo Austin Ave r e Rd Springs Hot son Vancouver Rd Harris u Arbutus St l B d 29th Ave R Crown St Crown St Dunbar T

Blenheim St Harri Deer Lake Pkwy ra r St e W 33rd Ave E 33rd Ave ns Coquitlam Fern Cr

Rd Neaves

Ca i n R

Broadway St Broadway 7

ad Dewdney Trunk Rd McCallum Rd

Joyce a t 132nd Ave

Hig 1 i 7 9 hw P Oakridge/41st Ave ay Brunette Ave W 41st Ave E 41st Ave Grange St Burnaby Braid Shaughnessy North Rd W Boulevard United Blvd 128th Ave 128th Ave Earles St Pitt Patterson Hartley Rd 7 Investment Snapshot W 49th Ave Langara/ 7 Rd Cameron 6th St Mary Hill Bypass Meadows 49th Ave 49th Ave E Metrotown Hartley Ave Lougheed Hwy

Fraser St Fraser Knight St Canada Wy

Main St St Tyne Sapperton 124th Ave Victoria Dr P Pitt d Imperial St o R

r St 203rd Oak St Meadows 248th St Granville Street Spratt Rd Spratt

Royal Rd Lake Stave W 57th Ave Rd Woolridge 256th St t r 227th St 224th St 216th St St Laity e

M 232nd St W 57th Ave Rd Boundary Oak 10th Ave DOUGLAS t

Cambie St Kingswa s y a

C.P.R. Harrison Bay

264th St t e Metro Vancouver Multifamily Mid-Year 2017 YTD 2018 Trend n Dewdney Trunk Rd Dewdney Trunk Rd River ISLAND v S 8th Ave n PITT MEADOWS l

y Limbert Rd

112th Ave 207th St Number of Deals gO Kent Ave S Marine Wy WESTMINSTERardso ll a 124 78 id n Queens Ave Columbia o s r a w W s k ISLAND Twigg Pl e y Bridge 112th Ave B t Scott Rd S VANCOUVER S e Bridge Rd g v t New 110th Ave C.N.R. 112th A 112th Ave n INTERNATIONAL i B 22nd St Westminster HOG Templeton a rid Grosvenor Rd L River d ISLAND AIRPORT r g Gateway R Sea Island e 108th Ave 108th Ave hu y Rd e Centre t W BARNSTON k YVR Ar Vulcan C.N.R. Byrne Rd Transaction Volume (CAD) Wy Bridgeport a $1,843,630,887 $1,371,411,319 Airport hie L Conac 91A ISLAND Grant Mc e WINDERMERE ISLAND S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave t r 104th Ave FAIRFIELD SEA 99 North Surrey S a Central er Farms Rd Farms ISLAND iv i ISLAND R Rd t ll K e O Aberdeen Cambie Rd Wilson St e b Golden Ears Bridge Golden Ears y 102nd Ave 256th St ys p

208th St t m f W 100th Ave 100th Ave o Dale Rd a Source: RealNet & Colliers Research r n C

G ke King George 100th Ave e a Q A Russ B 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway

o e W d 280th St r e Rd R Alderbridge Wy i y Richmond Annacis Highway n l 156th St g ANNACIS 148th St 160th St e s 96th Ave s h s Castleman Rd 9

Lansdowne Albion Ferry r i bo 96th Ave o t No 1 r n e a o ISLAND 96th Ave Richards Ave A R

d River Rd u 99A C d River Rd g r pe 91 De o a n

h l

w Rd Young 192nd St C.N.R. t H l d Farms Rd Rd McGrath

i B MCMILLAN S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av ISLAND T Yal a r e R n A u Wellington Ave d e w n d l k y ve e Rd Chapman Rd 128th St 132nd St 120th St Ferndale Ave Cli x a Granville Ave Hatzic D y F 88th Ave 88th Ave CRESCENT H erw W r Fraser River 1A No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t s 88th Ave ISLAND Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

Capitalization Rates B y 7 Wolfe Rd Blundell Rd Rd 216th St Topham r W Glover Rd i l 84th Ave d 84th Ave e 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd e o Mission St Cedar N ck Mtn Rd Rd Ford HIGH LOW Richmond C.N.R. Nicomen Island Trunk Rd illiwa Ch Francis Rd C.N.R. 22nd Ave Chilliwack Central Rd 2018 Metro Vancouver Multifamily No. 1 Rd No. 4 Rd No. 3 Rd No. 5 Rd No. 6 Rd C.N.R. Annacis King George Highway N R Pacic Highway Harvie Rd

Gilbert Rd i 80th Ave i Eagle Rd c St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown TILBURY e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run ISLAND 80th Ave 7 Tyler d k Rd 1

Williams Rd H H T 14th Ave S o e Duke Rd t i 80th Ave o p g 76th Ave S co 76th Ave l ut Fraser River h e e h Fraser - Delta Thruway Fraser t Wy 7 t k

w g C.P.R. a 208th St 216th St 200th St Notable Sales 192nd St R Trans Canada Hwy

a r High Rise L Hurd St Hurd

3.00% 2.00% d y a Prairie Central Rd 112th St Scott Rd Scott

Vantage e 76th St 80th St p 168th St 176th St 184th St Steveston Hwy h 7th Ave v W Yale Rd 144th St 140th St

a 152nd St

River Rd 72nd Ave Newton Rd T t Progress Wy 72nd Ave 240th St r Surrey S Luckakuck Wy 72nd Ave V Wren St Wren 72nd Ave 72nd Ave 1st Ave Industrial Wy e d

Mission d

72nd St McTavish Rd Newton Rd C e

Moncton St Gibson Rd No. 2 Rd r HWY 10 Rd Prest Rd Banford Low Rise Shell Rd h

91 64th Ave 10 City 3.50% 2.50% 68th Ave SOUTHERN i George Massey Tunnel BYPASS R lli

d w ac R

Trans Canada Highway CHILLIWACK k i

17 RAILWAY W Yale Rd v e r

Kitson Pkwy Dyke Rd 64th Ave R

Lickman Rd Source: Colliers 2018 Q2 Cap Rate Report d SOUTHERN RAILWAY s Satchell St Satchell a MATSQUI Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. ISLAND Page Rd i

272nd St 1 Peters Rd

60th Ave Delta C.N.R. d 60th Ave Rd Chadsey S Sumas Rd Bailey Rd Logan Ave 58th Ave 148th St 99 140th St Fore Rd 60th Ave 56th Ave Promontory Rd 56th Ave 11 Watson Rd W Douglas Cr d B.C. RAIL 208th St 56th Ave South Fraser Perimeter Road Perimeter South Fraser LANGLEY Harris Rd R r Mission-abbotsford Highway 56th Ave e 72nd St AIRPORT Sumas Prairie Rd Sumas Prairie iv Hopedale Rd Notable Sales R 53rd Ave Keith Wilson Rd Station Rd Colebrook Rd 160th St

Robertson Rd Robertson ok R Westham Island Rd olebro d C 304th St 296th St 10 Ladner Trunk Road St 288th Sinclair Rd

erside Rd 203rd St 203rd 48th Ave Fraser Highway d G Gladwin R r Riv Bell Rd n WESTHAM ISLAND ade Townshipline Rd ntai C PROPERTY NAME PROPERTY ADDRESS MUNICIPALITY # OF UNITS PRICE PURCHASER VENDOR 15 Cr 48th Ave ou h SOUTHERN RAILWAY M 17A 48th Ave No. 3 Rd der il Dawson Rd Ved liw a r Old Yale Rd ck D L a r Rd ke u Straiton R h Clayburn Rd 44 Ave d

t Yarrow Central Rd r

328th St A 64th St 17 40th Ave 40th Ave 40th Ave Ottmann Properties 1501 Haro St, 1005 Jervis St, 1755 Vancouver/ 40th Ave 40th Ave Mud Bay Downes Rd S BOUNDARY BAY um Fireclay Rd No. 4 Rd 1. 456 $247,919,038 Starlight Investments36th Ave Ottmann Properties Ltd. a s AIRPORT M

Pacic Highway .R. 34B Ave t .P Haro St, 150 East Keith Rd n North Parallel N. Vancouver C Limited Abbotsford R South Parallel

d Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy 32nd Ave Rd Boundary R 32nd Ave rn t ybu Lake

53rd St 53rd la d n 32nd Ave C R Atkinson Rd ce Su Old No. 5 Rd res m tn C as M 28th Ave S F W s

27B Ave w t erg a a 160th St Rd Clearbrook 168th St 184th St us m ie 28th Ave 28th Ave on y u 2. Oceania Court 7070 Inlet Drive Burnaby 117 $35,500,000 Anthem Properties Corp. Private Individual v 99 Wy r S y e a South Fraser Way w B o 1A L 52nd St 56th St 188th St Old Yale 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave

Ross Rd Ross Trans Canada Hwy Mt. Lehman Rd

Living Balance Property Investment 152nd St 124th St 140th St 128th St

20th Ave 20th Ave McMillan Rd 20th Ave Marshall Rd Hwy Interprovincial 20th Ave 13 3. Lagoon Villa Apartments 1958 Barclay Street Vancouver 42 $19,650,000 Private Individual 192nd St 1 Group16th Ave Rd Dixon 232nd St 208th St 240th St

216th St 200th St St 200th 224th St 248th St 256th St 272nd St White Rock Rd Lefeuvre Bradner Rd King Rd 16th Ave Wells Line Rd North Blu Rd 16th Ave 16th Ave Marine Dr 12th Ave Peardonville Rd

B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT cCallum Rd

a M r Cole Rd Rd McDermott Marion Rd Powerhouse Rd Powerhouse Whatcom Rd Whatcom y 264th St B ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

Causeway Rd Roberts Point B.N.R. 8th Ave d BC FERRIES 176th St

TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA U.S.A. U.S.A. U.S.A. 3 Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International Retail

The total value of retail sales in the first half of 2018 was Year Over Year Retail Investment $1.301 billion, an approximately 26% decrease from the $1.747 billion in retail sales in the first half of 2017. 194 sales $3,000,000,000 350 occurred in 2018, which is greater than the 169 sales that 300 occurred in the same period in 2017. Colliers has observed $2,500,000,000 250 the continued trend of purchasers prioritizing the future $2,000,000,000 development potential of retail investments over the current 200 return of the asset. $1,500,000,000 150 $1,000,000,000 Highlights 100

>> British Columbia’s retail growth is competitive on a national $500,000,000 50 level, with a year-over-year unadjusted sales growth of 7.4%; this surpasses the national increase of 5.6%. In January $- - 2018, Vancouver recorded a 10% increase on a same-month 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 basis compared to January 2017. Investors are willing to pay premiums to own retail spaces in vibrant, affluent areas such as YTD Transaction Volume Deal Count Kitsilano, as exmplified by the sale of 2111 West 4th Avenue. Source: RealNet & Colliers Research

Buntzen >> Gateway Casinos & Entertainment Ltd. announced in February Lake Capilano their agreement to sell and leaseback three of their casino Lake properties with Mesirow Financial, a Chicago-based financial West r m D r d

h R A g u o n Vancouver o n r a a

r l i i o D

p d b s a mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd services company. These assets were Grand Villa Casino S Queens Ave Le ve ls Delbrook BC RAIL Mathers Ave d Pitt Lake Highway R E 29th St ur Inglewood Ave o 21st St 11th St 11th m y Fulton Ave 1 Hyannis Dr e

S e

Lynn Valley Rd North t v

15th St A Burnaby, Starlight Casino New Westminster, and Cascades

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e Dr F Vancouver y Rd Mountain Hwy a Larson Rd B 15th St ll e Lonsdale Ave Chestereld Ave Chestereld d w Harrison Lake e W 13th St Ave St Georges R d

t e

e B Berkley Rd Berkley

Welch St Mountain Hwy o W W 3rd St E Sunnyside Rd Sunnyside E Grand Blvd E Grand Casino Langley. The value of this transaction is estimated to o Mt K Seymour P l kwy Harbourside Dr ei l Es th i Harbourside Pl p L l Rd East Rd ns Gate Bridg an o a E 3rd St Lonsdale Quay de Rd Cove Deep Li

Brooksbank Ave lart Rd ol on Dollarton Hw Main St D y d E Esplanade Ir l o OW Riverside Dr Port Moody 99 n Rd

W be greater than $500 million. In the past two years, Mesirow il r

o p

r k A

Burrard Inlet s Dr a M Panoram 1 e m H

o Ioco Rd er

r it

i a

a Ba

l r g Financial has closed more than $1.5 billion USD in sale- n

B et

H C.P.R. e

English Bay r ig

i h

McGill St d way g Eton St M

Burrard 7A DenmanDavie St St Waterfront e o La u nd Wy Pinetree n s Woodland Pipeline Rd t Pacic St Dundas St d S t o a w Lafarge Lake - Douglas y Victoria Dr i ine Dr Granville n Johnson St s ar 3 Vancouver n s M E Hastings Street e W City Centre B e n

N D Stadium/Chinatown v Simon Fraser h

d r

leaseback agreements. g Port Moody Centre Lincoln Coast Meridian Rd Parker St University u Stave Lake Venables St Curtis St St. Johns St a Yaletown/ Coquitlam Central h Richardson Rd Poin Roundhouse Port Moody Centre Inlet Centre Coquitlam S t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g University of W 4th Ave Olympic Village l

Renfrew St Renfrew Holdom Clarke Rd 4 Broadway/ Broadway Commercial Como Lake Ave Port Coquitlam 4 City Hall E Broadway Burquitlam th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert

W 16th Ave Sperling/ Coquitlam Grandview Hwy Burnaby Lake y Kingsway Ave Burns Rd Maple Canada Wy Lake City Way W S Kingsway Production Way/ r W University e

M i Ridge a r Lougheed Highway r King Edward Ave King Lougheed Lougheed a i Sprott St Linton St 7 n Nanaimo St

Edward St Rupert Town Centre Mountain St Town Centre Rd Gatensbury e Winston St Investment Snapshot D Macdonald St Nanaimo Austin Ave r e Vancouver Rd Harris u Arbutus St l B d 29th Ave R Crown St Crown St Dunbar T

Blenheim St Harrison Hot Springs Rd Springs Hot Harrison Deer Lake Pkwy ra r St e W 33rd Ave E 33rd Ave ns Coquitlam Fern Cr

Rd Neaves

Ca i n R

ad St Broadway Dewdney Trunk Rd McCallum Rd 7

Joyce a t 132nd Ave

Hig 1 i 7 9 hw P Oakridge/41st Ave ay Brunette Ave W 41st Ave E 41st Ave Grange St Metro Vancouver Retail Burnaby Shaughnessy Mid-Year 2017 YTD 2018 Trend Braid North Rd W Boulevard United Blvd 128th Ave 128th Ave Earles St Pitt Patterson Hartley Rd 7 W 49th Ave Langara/ 7 Rd Cameron 6th St Mary Hill Bypass Meadows 49th Ave 49th Ave E Metrotown Hartley Ave Lougheed Hwy

Fraser St Fraser Knight St Canada Wy

Main St St Tyne Sapperton 124th Ave Victoria Dr P Pitt d Imperial St o R

r St 203rd 248th St Oak St Meadows Granville Street Spratt Rd Spratt

Royal Rd Lake Stave W 57th Ave Rd Woolridge 256th St t r 227th St 224th St 216th St Laity St Laity e

M 232nd St W 57th Ave Rd Boundary Oak 10th Ave DOUGLAS t

Cambie St Kingswa s y a C.P.R. Harrison Bay 264th St

t n Dewdney Trunk Rd e Number of Deals Dewdney Trunk Rd v River ISLAND S 8th Ave n PITT MEADOWS l 169 194 y Limbert Rd

Rumble St B Hammond Rd S t r AIRPORT o 6th Ave i Nelson Ave i AGASSIZ l d Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr NEW e Meadows d Knight St Bridge 17 R a W 70th Ave N Kent Ave S Fraser Perimeter Rd iver Port n Royal Oak Ave Royal R e P Fraser Wy Haney y Gilley Ave at B e MITCHELL u yp Kent Ave S ll 112th Ave 207th St dgO Marine Wy WESTMINSTERardson Queens Ave Columbia o as ri a w W s k ISLAND Twigg Pl e y Bridge 112th Ave B t Scott Rd S VANCOUVER St e Bridge Rd Transaction Volume (CAD) g New Av 11 110th Ave C.N.R. 2th 112th Ave $1,747,634,751 $1,301,119,601 n INTERNATIONAL i B 22nd St Westminster HOG Templeton a ridg Grosvenor Rd L River d 2 ISLAND AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd BARNSTON k YVR C.N.R. a Wy Bridgeport L Airport Conachie 91A ISLAND Grant Mc e WINDERMERE ISLAND S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave t r 104th Ave FAIRFIELD Source: RealNet & Colliers Research SEA 99 Surrey S North a Central er Farms Rd Farms iv i ISLAND ISLAND R Rd t K ell O Aberdeen Cambie Rd Wilson St e b 256th St y Bridge Golden Ears 102nd Ave ys p

208th St t m f W 100th Ave 100th Ave o Dale Rd a r n C

G ke King George 100th Ave e a Q A Russ B 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway o e W

r e 280th St Rd Alderbridge Wy i y Richmond Annacis Highway n l 156th St ANNACIS 148th St 160th St e g s 96th Ave so h Castleman Rd 9 Lansdowne bo Albion Ferry t No i r 96th Ave n 1 a o ISLAND 96th Ave Richards Ave A R River Rd u 99A C d River Rd g r D pe 91 h e o

w Rd Young 192nd St C.N.R. t H d Farms Rd Rd McGrath Westminster Hwy B 92nd Ave MCMILLAN S n r e Gillanders Rd

i d e deg 92nd Ave y T Lougheed Highway r E Brighouse Av ISLAND Yal a e n ru Rd e A n Wellington Ave d l k yw ve e Rd Chapman Rd 120th St 128th St 132nd St Ferndale Ave Cli x a Granville Ave Hatzic D y F 88th Ave 88th Ave CRESCENT H erw W r Fraser River 1A No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t s 88th Ave ISLAND Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

B y 7 Wolfe Rd Blundell Rd Rd 216th St Topham r W Glover Rd i l 84th Ave d 84th Ave e 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd Capitalization Rates e St Cedar o Mission N Rd lliwack Mtn Rd Rd Ford Richmond C.N.R. Nicomen Island Trunk Chi Francis Rd C.N.R. 22nd Ave Chilliwack Central Rd No. 1 Rd No. 4 Rd No. 3 Rd No. 5 Rd No. 6 Rd C.N.R. Annacis King George Highway N Harvie Rd R

Gilbert Rd i 80th Ave i Eagle Rd c St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown TILBURY e Rd Annis r n I

280th St s C.N.R. R land T

Garden City Rd City Garden run ISLAND 80th Ave 7 Tyler d k Rd 1 Williams Rd H H T 14th Ave S 2018 Metro Vancouver Retail HIGH LOW o e Duke Rd t i 80th Ave o p g 76th Ave S co 76th Ave l ut Fraser River h e e h Fraser - Delta Thruway Fraser t Wy 7 t k

w g C.P.R. a 208th St 216th St 192nd St 200th St R Trans Canada Hwy a r Hurd St Hurd d y a Prairie Central Rd 112th St Scott Rd Scott

Vantage e L 76th St 80th St p 168th St 176th St Pacic Highway 184th St Steveston Hwy h 7th Ave v W Yale Rd 144th St 140th St 152nd St

River Rd 72nd Ave Newton Rd T ta Progress Wy 72nd Ave 240th St r Surrey S Luckakuck Wy 72nd Ave V Wren St Wren 72nd Ave 72nd Ave 1st Ave Industrial Wy e d

Mission d

72nd St McTavish Rd Newton Rd C e

Moncton St Gibson Rd No. 2 Rd r HWY 10 Rd Prest Rd Banford Regional/Power Shell Rd City h 91 10

64th Ave 68th Ave SOUTHERN i 5.25% 3.50% R George Massey Tunnel BYPASS lli

d w ac R

Trans Canada Highway CHILLIWACK k i

17 RAILWAY W Yale Rd v e

Kitson Pkwy r Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d Satchell St Satchell a MATSQUI Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. ISLAND Page Rd i R

272nd St 1 Peters Rd

60th Ave Delta C.N.R. d

Community Rd Chadsey 5.25% 4.00% Bailey Rd 60th Ave S Sumas Rd Logan Ave 58th Ave 148th St 99 140th St Fore Rd 60th Ave 56th Ave Promontory Rd 56th Ave 11 Watson Rd W Douglas Cr

d B.C. RAIL 208th St 56th Ave South Fraser Perimeter Road Perimeter South Fraser LANGLEY Harris Rd R r Mission-abbotsford Highway 56th Ave e 72nd St AIRPORT Hopedale Rd Strip Mall iv Rd Sumas Prairie R 53rd Ave Keith Wilson Rd

5.00% 4.00% Station Rd Colebrook Rd 160th St

Robertson Rd Robertson ok R Westham Island Rd olebro d C 304th St 296th St 10 Ladner Trunk Road St 288th Sinclair Rd 203rd St 203rd 48th Ave Fraser Highway d G Gladwin Rd R ra Riverside Rd Bell Rd in WESTHAM ISLAND de C Townshipline Rd unta C SOUTHERN RAILWAY 15 r 48th Ave Mo h 17A 48th Ave No. 3 Rd der il Source: Colliers 2018 Q2 Cap Rate Report Dawson Rd Ved liw a r Old Yale Rd ck D La r Rd ke u Straiton R h Clayburn Rd 44 Ave d

t Yarrow Central Rd r

328th St A 64th St 17 40th Ave 40th Ave 40th Ave 40th Ave 40th Ave Mud Bay Downes Rd S BOUNDARY BAY u Fireclay Rd No. 4 Rd 36th Ave m Notable Sales as AIRPORT M Pacic Highway

34B Ave t n North Parallel C.P.R.

Abbotsford R South Parallel

d Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy R 32nd Ave 32nd Ave rn Rd Boundary t ybu Lake

53rd St 53rd la d n 32nd Ave C R Atkinson Rd ce S Old No. 5 Rd s um tn Cre as M 28th Ave S F W s

27B Ave w t erg a a 168th St 184th St Rd Clearbrook 160th St u m ie 28th Ave 28th Ave so y u v n W S y 99 y er a South Fraser Way w B o 1A L 52nd St 56th St 188th St Old Yale 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave

Ross Rd Ross Trans Canada Hwy Mt. Lehman Rd 152nd St 124th St 140th St 128th St

20th Ave 20th Ave McMillan Rd 20th Ave Marshall Rd Hwy Interprovincial 20th Ave 13 192nd St 1 16th Ave Rd Dixon 232nd St

208th St 240th St

216th St 200th St St 200th 224th St 248th St 256th St 272nd St White Rock Rd Lefeuvre Bradner Rd King Rd 16th Ave Wells Line Rd North Blu Rd 16th Ave 16th Ave Marine Dr 12th Ave Peardonville Rd

B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT Notable Sales a McCallum Rd r Whatcom Rd Whatcom Cole Rd Rd McDermott Marion Rd Rd Powerhouse y 264th St B 6th Ave ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd

Causeway Rd Roberts Point B.N.R. 8th Ave d BC FERRIES 176th St

TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA PROPERTY NAME MUNICIPALITY BUILDING SIZE (SF) PRICE PURCHASER U.S.A. VENDOR U.S.A. U.S.A.

Starlight Casino, Grand Villa New Westminster, 1. Casino & Hotel, and Cascades Burnaby and 791,488 $500,000,000 Mesirow Financial Gateway Casinos & Entertainment Limited Casino Langley

2. 2111 West 4th Avenue Vancouver 64,381 $80,500,000 Bonnis Properties Private Investor 3. Richmond Centre Richmond 790,000 $69,783,066 AIMCo Ivanhoe Cambridge

Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International 4 Industrial

The total value of industrial sales in the first half of 2018 was Year Over Year Industrial Investment approximately $991 million, a 253% increase from the nearly $392 million transacted in the same period last year. The $2,500,000,000 300 number of transactions also increased substantially, with 246 sales occurring in 2018 to date, compared with 135 sales in 250 the first half of 2017. The Lower Mainland is approaching a $2,000,000,000 crisis in terms of pent-up demand relative to available supply. 200 Without the creation of more industrial space, some businesses $1,500,000,000 may be forced leave the Lower Mainland to find available 150 properties elsewhere, as industrial property that is accessible $1,000,000,000 for employees is becoming increasingly expensive and difficult 100 to find. In Vancouver proper, industrial strata prices can $500,000,000 50 surpass $700 per square foot.

$- - Highlights 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018 >> Industrial strata is valuable in Burnaby, and prices have risen 88% in the past decade, breaking $400 per square foot. At YTD Industrial Count

one point in June, there were no vacant industrial strata units Source: RealNet & Colliers Research listed for sale in Burnaby, which creates demand for upcoming projects such as PC Urban’s 100,000 square foot strata development on Regent Street. Land zoned for multifamily

development severely limits industrial availability and exerts Buntzen Lake Capilano Lake upward pressure on prices, and Burnaby is an area experiencing Vancouver

West r m D r d

h R A g u o n Vancouver o n r a a

r l rapid, dramatic residential densification. However, industrial land i i o D

p d b s a mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le ve ls Delbrook BC RAIL Mathers Ave d Pitt Lake Highway R E 29th St ur Inglewood Ave o 21st St 11th St 11th m y Fulton Ave 1 Hyannis Dr e

S has not been prioritized in this building boom. e Lynn Valley Rd North t v

15th St

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Vancouver Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chestereld d w Harrison Lake i W 13th St Ave St Georges R d

r t e

B e B Berkley Rd Berkley

Welch St Mountain Hwy o e W W 3rd St E Sunnyside Rd Sunnyside E Grand Blvd E Grand t o Mt Seymour a K l Pkwy Harbourside Dr e l E i G s ith Harbourside Pl p L s l Rd East Rd n an o a E 3rd St i Lonsdale Quay de Rd Cove Deep L Brooksbank Ave ollarton Rd D Dollarton Hwy Main St d E Esplanade Ir l >> Between 2010 and 2015, Vancouver approved the change in o OW Riverside Dr Port Moody 99 n Rd

W il r

o p

r k A

r Burrard Inlet s Dr a M Panoram

e m H

o Ioco Rd er

r it

i a

a Ba

l r g n

B et

H C.P.R. e

English Bay r ig i h land use of more than 350 hectares of industrial land. Industrial McGill St d

way g Eton St M

N D Stadium/Chinatown v Simon Fraser h

Clark Dr g University of W 4th Ave Olympic Village l

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

Kingsway Ave

Lake City Way W

Canada Wy n

Kingsway r S Production Way/ i

e W a

request to have around 200 hectares of land excluded from the t University n i Ridge M n

r Lougheed Highway

a u r King Edward Ave King Lougheed Lougheed a o i Sprott St Linton St 7 n Nanaimo St

Edward St Rupert Town Centre M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e Vancouver Rd Harris u Arbutus St l B d 29th Ave R Crown St Crown St Dunbar T

Blenheim St Harrison Hot Springs Rd Springs Hot Harrison Deer Lake Pkwy ra r St e W 33rd Ave E 33rd Ave ns Coquitlam Fern Cr

Rd Neaves

Ca i n R

Broadway St Broadway 7

ad Dewdney Trunk Rd McCallum Rd

Joyce a t 132nd Ave

t Hig 1 i 7 9

Agricultural Land Reserve was denied in April. The Agricultural hwa P Oakridge/41st Ave y Brunette Ave W 41st Ave E 41st Ave Grange St Burnaby Braid Shaughnessy North Rd W Boulevard United Blvd 128th Ave 128th Ave Earles St Pitt Patterson Hartley Rd 7 W 49th Ave Langara/ 7 Rd Cameron 6th St Mary Hill Bypass Meadows 49th Ave 49th Ave E Metrotown Hartley Ave Lougheed Hwy

1 St Fraser Knight St Canada Wy

Main St St Tyne Sapperton 124th Ave Victoria Dr P Pitt d Imperial St o R

r St 203rd 248th St Oak St Meadows Granville Street Spratt Rd Spratt

Royal Rd Lake Stave W 57th Ave Rd Woolridge 256th St t r 227th St 224th St 216th St St Laity e

M 232nd St W 57th Ave Rd Boundary Oak 10th Ave DOUGLAS t

Cambie St Kingswa s Land Commission stated the priority for these lands will y a C.P.R. Harrison Bay 264th St

t n Dewdney Trunk Rd e River ISLAND Dewdney Trunk Rd v S 8th Ave n PITT MEADOWS l

y Limbert Rd

Rumble St B Hammond Rd S t r AIRPORT o 6th Ave i Nelson Ave i AGASSIZ l d Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr NEW e Meadows d Knight St Bridge 17 R a W 70th Ave N Kent Ave S Fraser Perimeter Rd iver Port n Royal Oak Ave Royal R e P Fraser Wy Haney y Gilley Ave at B e MITCHELL u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy WESTMINSTERardson Queens Ave Columbia lo as ri a w W s k ISLAND Twigg Pl e y Bridge 112th Ave B t Scott Rd S VANCOUVER S e Bridge Rd g v t New 110th Ave C.N 112th A 112th Ave continue to be farm use, despite the dwindling industrial supply n INTERNATIONAL i B 22nd St Westminster .R. HOG Templeton a rid Grosvenor Rd L River d g ISLAND AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd BARNSTON k YVR C.N.R. a Wy Bridgeport L Airport Conachie 91A ISLAND Grant Mc e WINDERMERE ISLAND S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave t r 104th Ave FAIRFIELD SEA 99 North Surrey S a Central er Farms Rd Farms ISLAND iv i ISLAND R Rd t ll K e O Aberdeen Cambie Rd Wilson St e b 256th St Golden Ears Bridge Golden Ears y in the region. y 102nd Ave s p 208th St t m f W 100th Ave 100th Ave o Dale Rd a r n C

G ke King George 100th Ave e a Q A Russ B 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway

o d e 3 W 280th St r e Rd R Alderbridge Wy i y Richmond Annacis Highway n l 156th St g ANNACIS 148th St 160th St e s 96th Ave s h s Castleman Rd 9

Lansdowne Albion Ferry r i bo 96th Ave o t No 1 r n e a o ISLAND 96th Ave Richards Ave A R

d River Rd u 99A C d River Rd g r pe 91 De o a n

h l

w Rd Young 192nd St C.N.R. t H l d Farms Rd Rd McGrath 2 i B MCMILLAN S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av ISLAND T Yal a r e R n A u Wellington Ave d e w n d l k y ve e Rd Chapman Rd 120th St 128th St 132nd St Ferndale Ave Cli x a Granville Ave Hatzic D y F 88th Ave 88th Ave CRESCENT H erw W r Fraser River 1A No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t s 88th Ave ISLAND Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

Gilbert Rd i 80th Ave i Eagle Rd c St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown TILBURY e Rd Annis r n I Investment Snapshot 280th St s C.N.R. l R and T Garden City Rd City Garden run ISLAND 80th Ave 7 Tyler d k Rd 1

Williams Rd H H T 14th Ave S o e Duke Rd t i 80th Ave o p g 76th Ave S co 76th Ave l ut Fraser River h e e h Fraser - Delta Thruway Fraser t Wy 7 t k

w g C.P.R. a 208th St 216th St 192nd St 200th St R Trans Canada Hwy

a r L Hurd St Hurd d y a Prairie Central Rd 112th St Scott Rd Scott

Vantage e 76th St 80th St p 168th St 176th St 184th St

Surrey v W Yale Rd Steveston Hwy h 7th Ave 144th St 140th St

a 152nd St

River Rd 72nd Ave Newton Rd T t Progress Wy 72nd Ave 240th St r Surrey S Luckakuck Wy 72nd Ave V Wren St Wren 72nd Ave 72nd Ave 1st Ave Industrial Wy e 2018 Metro Vancouver Industrial Mid-Year 2017 YTD 2018 Trend d Mission d

72nd St McTavish Rd Newton Rd C e

Moncton St Gibson Rd No. 2 Rd r HWY 10 Rd Prest Rd Banford Shell Rd 91 64th Ave 10 City h

68th Ave SOUTHERN i George Massey Tunnel BYPASS R lli

d w ac R

Trans Canada Highway CHILLIWACK k i

17 RAILWAY W Yale Rd v e r

Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d Satchell St Satchell a MATSQUI Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. ISLAND Page Rd i

272nd St 1 Peters Rd

60th Ave Delta C.N.R. d 60th Ave Rd Chadsey S Sumas Rd Bailey Rd Logan Ave Number of Deals 148th St 82 246 58th Ave 99 140th St Fore Rd 60th Ave 56th Ave Promontory Rd 56th Ave 11 Watson Rd W Douglas Cr d B.C. RAIL 208th St 56th Ave South Fraser Perimeter Road Perimeter South Fraser LANGLEY Harris Rd R r Mission-abbotsford Highway 56th Ave e 72nd St AIRPORT Sumas Prairie Rd Sumas Prairie iv Hopedale Rd R 53rd Ave Keith Wilson Rd Station Rd Colebrook Rd 160th St

Robertson Rd Robertson ook Rd Westham Island Rd olebr n Rd C 304th St 296th St 10 Ladner Trunk Road St 288th Sinclair Rd 203rd St 203rd 48th Ave Fraser Highway d G Gladwi R Transaction Volume (CAD) Riverside Rd Bell Rd ra in $799,526,181 $991,551,839 WESTHAM ISLAND de Townshipline Rd unta C C SOUTHERN RAILWAY 15 r 48th Ave Mo h 17A 48th Ave No. 3 Rd der il Dawson Rd Ved liw a r Old Yale Rd ck D L a r Rd ke u Straiton R h Clayburn Rd 44 Ave d

t Yarrow Central Rd r

328th St A 64th St 17 40th Ave 40th Ave 40th Ave 40th Ave 40th Ave Mud Bay Downes Rd S u Fireclay Rd Source: RealNet & Colliers Research BOUNDARY BAY m No. 4 Rd 36th Ave as AIRPORT M Pacic Highway

34B Ave t n North Parallel C.P.R.

Abbotsford R South Parallel

d Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy 32nd Ave Rd Boundary R 32nd Ave rn t ybu Lake

53rd St 53rd la d n 32nd Ave C R Atkinson Rd ce Su Old No. 5 Rd res m tn C as M 28th Ave S F W s

Ross Rd Ross Trans Canada Hwy Mt. Lehman Rd 152nd St 124th St 140th St 128th St

20th Ave 20th Ave McMillan Rd 20th Ave Marshall Rd Hwy Interprovincial 20th Ave 13 192nd St 1 Dixon Rd Dixon

16th Ave 08th St 232nd St 2 240th St

216th St 200th St St 200th 224th St 248th St 256th St 272nd St White Rock Rd Lefeuvre Bradner Rd King Rd 16th Ave Wells Line Rd North Blu Rd 16th Ave 16th Ave Marine Dr 12th Ave Peardonville Rd B ABBOTSFORD 11

Capitalization Rates o u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT

a McCallum Rd r Cole Rd Rd McDermott Marion Rd Rd Powerhouse Whatcom Rd Whatcom y 264th St B Notable Sales ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

Causeway Rd Roberts Point B.N.R. 8th Ave d BC FERRIES 176th St

TERMINAL 172nd St 176th St 2018 Metro Vancouver Industrial HIGH LOW 1st Ave TSAWWASSEN CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA U.S.A. U.S.A. U.S.A. Multi-Tenant 5.00% 4.00% Single-Tenant 4.75% 3.75%

Source: Colliers 2018 Q2 Cap Rate Report

Notable Sales

PROPERTY NAME MUNICIPALITY BUILDING SIZE (SF) PRICE PURCHASER VENDOR 1. 101 69th East Avenue Vancouver 542,366 $90,390,000 Hungerford Properties Wal-Mart Canada Corp 2. 7900 Nelson Road Richmond 125,000 $39,030,000 Austeville Properties Ltd. Brookfield Properties Corp. 3. 19750 92A Avenue Langley 208,000 $32,750,000 Manulife Financial Barregar Investments Limited

5 Research & Forecast Report | First Half 2018 | Metro Vancouver / Investment | Colliers International PRIMARY AUTHORS: 413 offices in Kirk Kuester Executive Managing Director | BC 69 countries on +1 604 661 0814 [email protected]

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Patrick Easton Market Intelligence Coordinator +1 604 694 7214 $2.7 [email protected] billion US* in annual revenue

Colliers International | Vancouver 2.0 200 Granville Street, 19th Floor billion square feet Vancouver, BC | Canada under management TEL +1 604 681 4111

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About Colliers International Group Inc.

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Copyright © 2018 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.