PROMOTIONAL SUPPLEMENT VANCOUVER CHAPTER
18TH ANNUAL Regional OFFICE M ETRO VANCOUVER CHAPTER Cost of Business Survey
Fall 2018 NAIOP Vancouver Chapter is pleased to present the 2018 findings of its Office Development “Report Card”
400 West Georgia by Westbank
V ANCOUVER CHAPTER
GREATER VANCOUVER CHAPTER
n the 19th year of its publication, n Average annual inflation tracked back The 2018 winners are: Index the NAIOP Cost of Business Survey to 2006 (previously 2000) so all 20 I Most Improved has quantified development costs and municipalities are included 2018 Highlights ...... 1-2 processing times for 20 Metro Vancouver City of Port Coquitlam demonstrated a 70% reduction in fees from 2016 to municipalities to provide its membership 2018 NAIOP Awards for Municipal Office Market Update...... 3 and the business community as a whole 2018, more than double the next closest Excellence municipality in terms of reduction over Office Development Scenario . . . . . 4-5 with a reference tool when considering NAIOP will be acknowledging four development areas since 2000. The survey that time period. municipalities that have excelled in creating 2018 Municipal Rates...... 6-7 is also intended to be utilized by the environments positive to business creation. Most Fiscally Responsible municipalities, whose active participation City of Surrey has managed to keep an Timing ...... 8 makes this survey possible, as a gauge for The three categories of awards are: annual average inflation rate of 1.66% Permit Data ...... 9 their own development costs and approval Most Improved from 2006 to 2018 processes compared to those of their Mill Rates...... 10-11 The most improved compared to Most Business-Friendly neighbours. previous survey results New for 2018, NAIOP has City of Burnaby for their support NAIOP Development Features. . . . . 12 Most Fiscally Responsible of density and mixed use office incorporated a number of changes to better Commercial Real Estate Awards . . . . 13 deliver this information: Cost increases kept in line with overall developments. inflation. Municipal Update ...... 14 n Condensed municipal fee table created for better display Most Business-Friendly Office Trend: n Implementation of policies to support Different reporting of timing to more WELL Building Standard ...... 15 accurately reflect developer experiences the creation of new job spaces Continued on next page 2 Regional Office Cost of Business Survey — Fall 2018
M ETRO VANCOUVER CHAPTER
2018 Highlights
V ANCOUVER CHAPTER King George Hub by PCI Developments ACKNOWLEDGMENT: NAIOP would like to acknowledge and thank all of the municipalities that took part in this year’s Cost of Business Survey. Participation is voluntary and the time expended to respond to it can be significant GREATER VANCOUVER CHAPTER for planning departments. Development in any jurisdiction is a partnership between business and the community. NAIOP is pleased to be in a position to work, on behalf of our members, with all of the Metro Vancouver jurisdictions that participated in the publication of this information for the business community. NAIOP would also like to acknowledge the contributions of Avison Young for the office market update. If you have any questions on the data, please contact the Cost of Business Survey Committee at [email protected].
32 Regional Office Cost of Business Survey — Fall 2018 3
M ETRO VANCOUVER CHAPTER
Office Market Update
Economic Overview Richmond, which has not built any new office space for leaseV ANCOUVERin more than a CHAPTEdecade, R The growth of the B.C. economy is expected to slow after expanding by more than 3.5% will have to wait until the end of 2020 for new supply in the form of the ViewStar annually over the past four years. Growth is forecasted to ease to 2.9% in 2018 and average development. 2.7% in 2019 to 2020, before decreasing to 2.3% in 2021. High levels of construction have Only two projects are set to deliver in Surrey by 2020, one of which is currently 45% resulted in residential development remaining a growth driver in 2018; however, the recent preleased and the other may be sold as strata office. changes in mortgage lending policy and provincial housing measures have contributed to Market Outlook a decrease in demand that will slow residential investment during the next couple of years. Demand for office space throughout Metro Vancouver has rapidly highlighted shortfalls of A normalization trend is forecasted for interest rates as the Bank of Canada is expected to new supply in multiple markets as regional vacancy tightened to its lowest point since 2012 hike rates multiple times in 2019. GREATER VANCOUVER CHAPTER and is likely to approach the record-low vacancies of 2007-08 within 18 months. Source: Central 1, Economic Analysis of British Columbia, August 2018 With vacancy set to tighten due to a number of significant opportunities during Market Overview the remainder of 2018 in the downtown, Vancouver-Broadway and New Westminster While the development pipeline in Metro Vancouver has typically maintained a relatively markets, annual absorption is expected to be among the strongest since the last steady stream of new supply, a gap in both new product delivery and availability has development wave crested in 2015. Vacancy in all these markets as well as Burnaby, formed in key markets such as downtown, Burnaby, Richmond and, to a lesser extent, Richmond and Surrey is expected to continue tightening as deal velocity is likely to slow Surrey and Vancouver-Broadway. in response to fewer leasing opportunities. While overall, the office market in most Metro There is virtually no new space for lease being delivered downtown until 2020. Vancouver markets is expected to remain strong, there are certain municipalities that are However, the two buildings set for 2020, 402 Dunsmuir Street (100% preleased by contemplating requiring developers to provide a larger percentage of office space, as part Amazon) and 400 West Georgia (67% preleased by Deloitte Canada and Spaces), are of mixed use developments, without consideration for demand in these markets. While substantially preleased. In reality, meaningful amounts of new supply downtown will not all municipalities have the desire to create more job space, in reality the demand for office be available until 2021. space is limited in certain suburban markets. Burnaby, the second-largest office market in Metro Vancouver, has only a single project completing in the back half of 2018 with no other deliveries of office space until 2022. Metro Vancouver Vacancy & Absorption Trends
2018 Notable Office Leases 12.0% 1,600,000 9.4% 10% 9.7% 7.2% 1,400,000 Submarket Tenant Building Size (SF) 10.0% 1,223,656 1,200,000 Downtown Vancouver Amazon The Post 416,000 1,334,604 8% 8.0% Burnaby BC Liquor Distribution Branch Discovery Green 146,570 1,000,000 Downtown Vancouver Spaces 400 W. Georgia 120,390 6.0% 856,868 800,000 Downtown Vancouver Deloitte 400 W. Georgia 117,000 764,911 600,000 Downtown Vancouver Kabam Vancouver Centre II 105,000 4.0%
Downtown Vancouver Amazon The Exchange 90,000 Vacancyrate 400,000 Absorption rate (sf) rate Absorption Downtown Vancouver Blake, Cassels & Graydon LLP The Stack 80,000 2.0% 200,000 Downtown Vancouver WeWork Grant Thornton Place 75,600 92,870 Downtown Vancouver DLA Piper The Stack 67,000 0.0% – 2014 2015 2016 2017 2018 Downtown Vancouver EY Canada The Stack 60,000 (mid-year) Vacancy Absorption 2018 Notable Office Sales
Submarket Building Buyer Seller Size (SF) Price Price PSF Downtown Vancouver 800 Burrard Street Crestpoint Real Estate Investments CPP Investment Board/Oxford Properties 222,238 $277,000,000 $1,246 Burnaby Willingdon Park Spear Street Capital Healthcare of Ontario Pension Plan 488,811 $179,400,000 $367 Downtown Vancouver Telus House GWL Avigilon Corp. 134,967 $107,500,000 $796 Burnaby Canada Way Business Park CC&L Private Capital and Public Sector Pension Investors Group 327,964 $106,500,000 $325 North and South Investment Board Burnaby Production Court Pacific Reach Properties Artis REIT 297,727 $100,500,000 $338 East Vancouver Containers – Phase 2 Concert Properties Rize Alliance Properties 128,404 $92,000,000 $716 Downtown Vancouver Shorehill Building Hollyburn Properties Ltd. Shorehill Investments Ltd. 83,068 $80,000,000 $963 4 Regional Office Cost of Business Survey — Fall 2018
M ETRO VANCOUVER CHAPTER
Office Development Scenario
V ANCOUVERhis year’s s urvey CHAPTE was basedR on an office development scenario, the construction All municipalities were provided an opportunity to review and comment on the Tof a two-storey, 50,000-square-foot, Class B office building on two acres of results prior to publication. Please note that the survey results are based solely on the land. Municipalities received a “development proposal” where rezoning, subdivision, responses of the municipalities. The Metro Vancouver sewer and drainage charge has development permit and building permit approvals would be required. They then been broken out as a separate item for comparative purposes but has not been included reported on development costs and approval times according to their usual standards in totals due to regional variation in methods for calculating these items. and processes. Twenty municipalities were sent the survey representing a real-life situation in Development context: a mock development scenario, intending for them to run this request through their • Located within an area designated in the municipality’s Official Community Plan approvalGREATER VANCOUVERtimeline and CHAPTE assessR overall cost requirements. and Metro Vancouver’s Regional Growth Strategy as suitable for office and This level playing field provides meaningful comparison to actual building and commercial use development permit requests made by industry, and holds municipalities accountable • Located within a DP area for delivering on promises to efficiently process development opportunities in their • Located within a DCC/DCL-applicable area respective jurisdictions. • 295 feet (90 metres) of lot frontage on a 15-year-old dedicated municipal roadway and interior parcel lines with adjacent lots after subdivision • Site is assumed to have been cleared of all trees and filled to a suitable elevation
Building assumptions: • Complies with all design bylaw regulations within the governing jurisdiction • The application and its content have been prepared using the services of a registered architect, landscape architect and professional engineer • Fully sprinklered throughout Regional Office Cost of Business Survey — Fall 2018 5
M ETRO VANCOUVER CHAPTER
Office Development Scenario
Development requirements: V ANCOUVER CHAPTER • Rezoning to general office zoning as per jurisdiction, assuming proposed density conforms to zoning bylaw • Land subdivision to create one parcel of two net acres less road and other dedications and professional engineer • All required permits and fees
GREATER VANCOUVER CHAPTER Construction costs: • $235 per square foot*/$11,750,000 ($210 per sq. ft. for building + $25 per sq. ft. for site improvements) • $600,000 for off-site works (street and drainage improvements – not DCC rebatable)
*Source: Altus Group, 2018 Canadian Cost Guide
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M ETRO VANCOUVER CHAPTER
2018 Municipal Rates
V ANCOUVERnumber of important CHAPTER updates have Municipal Fee Comparison Aoccurred in this year’s survey, including the way the data is reported. Several columns $1,200,000 have been combined as they relate to 2016 2018 simplify and make the table easier to read. $1,000,000 Another key update is an increase in the $800,000 estimated construction cost for the scenario to $11,750,000 to more accurately reflect
TotalFees $600,000 rising construction costs. As a result, this GREATER VANCOUVER CHAPTER update includes fee increases wherever a fee $400,000 is calculated as a percentage of construction cost. To standardize this impact, a $200,000 benchmark has been set as outlined below. The deltas of all reported fees have been $- adjusted accordingly: n Increases greater than 35% from 2016 are City of Delta City of Surrey City of Burnaby City of Langley City of Chilliwack City of Port Moody City of CoquitlamCity of White Rock District of Mission City of AbbotsfordCity of Richmond City of Vancouver highlighted orange City of Maple Ridge Township of Langley City of Pitt MeadowsCity of Port Coquitlam City of New Westminster City of North Vancouver n Decreases greater than 20% from 2016 are District of West Vancouver District of North Vancouver highlighted green to $565,900 since 2016. All municipalities Average Development Cost Proportions Six municipalities reported significant reported increases greater than 35% in their overall cost increases, the highest being development and building permit fees, the A. Sewer & Water Connection Fees – 8% A B the City of Port Moody at 84% higher average increase being 67% over the span of since the last office survey was conducted two years. B. Rezoning & Subdivision Application Fees – 3% in 2016. This is predominantly due to its C Only two municipalities, the City of C. Development & Building Permit Fees – 23% development and building permit fees more Port Coquitlam and City of Surrey, reported E than doubling in the last two years. Not far significant overall cost decreases. In both Administration, Processing & Sprinkler Inspection Fees – 4% D. D behind is the District of North Vancouver at cases, their DCC fees were reduced, by 82% 72%, whose DCC fee went from $274,000 and 47%, respectively. E. DCC/DCL Fee – 62% Regional Office Cost of Business Survey — Fall 2018 7
M ETRO VANCOUVER CHAPTER
2018 Municipal Rates
2018 Municipal Rates V ANCOUVER CHAPTER 2016 Rank 2016 Rank 2018 Municipality & Rezoning Subdivision Application Fees Development Building & Permit Fees Administration, Processing & Sprinkler Inspection Fees Fee DCC/DCL Sewer & Water Connection Fees Regional Sewer & Fees Drainage Taxes Total (Excluding Regional Metro Charges & Taxes) Percentage Change from 2016 Percentage Change from 2006 Equivalent AnnualAverage Inflation Rate 1 1 City of Maple Ridge1 $8,012 $33,821 $24,000 $43,781 $31,000 $133,500 $121,560 $140,614 -0.10% -21% -1.92% 3 2 City of Burnaby $17,623 $158,545 $2,329 $0 $64,401 $133,500 $144,215 $242,898 38.30% 115% 6.60%
2 3 City of Port Moody $12,218 $177,018 $24,697 $55,165 $15,000 $133,500 $85,529 $284,098 80.8% 93%GREATER VANCOUVER5.79% CHAPTER 4 4 City of Pitt Meadows2 $10,675 $122,160 $0 $108,229 $74,000 $133,500 $110,881 $315,064 27.80% 79% 5.00% 7 5 City of Delta $4,162 $88,245 $24,620 $132,290 $85,000 $133,500 $96,319 $334,316 5.90% 49% 3.37% 20 6 City of Port Coquitlam $12,044 $87,720 $24,698 $187,519 $28,000 $133,500 $113,163 $339,980 -70.20% 34% 2.48% 17 7 City of Surrey3 $8,572 $95,533 $7,774 $211,864 $23,994 $133,500 $73,522 $347,737 -31.60% 22% 1.66% 5 8 City of New Westminster4 $4,591 $104,381 $24,964 $257,000 $0 $133,500 $196,451 $390,935 47.10% 265% 11.40% 8 9 Township of Langley $11,760 $94,447 $28,625 $258,156 $0 $133,500 $97,395 $392,988 12.80% 16% 1.21% 6 10 City of Chilliwack5 $3,265 $87,327 $9,000 $216,735 $80,000 $0 $106,594 $396,327 46.80% 173% 8.72% 11 11 District of West Vancouver6 $14,000 $118,992 $24,905 $260,175 $0 $60,000 $108,690 $418,072 0.30% 33% 2.38% 9 12 City of Coquitlam7 $12,429 $104,147 $23,575 $283,345 $0 $133,500 $109,499 $423,496 18.90% 40% 2.87% 10 13 City of White Rock $5,600 $121,333 $2,614 $297,884 $12,000 $133,500 $71,154 $439,431 11.90% 225% 10.33% 14 14 City of North Vancouver $6,930 $95,481 $40,856 $269,549 $65,000 $60,000 $146,374 $477,816 1.30% 29% 2.11% 12 15 District of Mission $6,592 $75,386 $31,301 $384,792 $0 $0 $159,347 $498,071 4.70% 75% 4.80% 15 16 City of Langley $7,909 $104,063 $27,790 $341,650 $32,000 $133,500 $94,817 $513,412 6.10% 66% 4.32% 16 17 City of Abbotsford $7,625 $66,823 $24,575 $423,736 $46,360 $0 $124,735 $569,120 13.30% 66% 4.34% 18 18 City of Richmond8 $5,322 $110,918 $24,000 $566,500 $22,600 $52,500 $59,705 $729,340 7.00% 160% 8.29% District of North 13 19 Vancouver $9,495 $145,438 $27,446 $565,900 $50,469 $60,000 $69,150 $798,749 71.70% 190% 9.27% 19 20 City of Vancouver $83,574 $65,747 $1,411 $695,500 $74,060 $46,500 $62,123 $920,292 6.30% 110% 8.67%
Increase greater than 35% from 2016 survey Decrease greater than 20% from 2016 survey
Note: where sewer and water hookup fees are not reported, the developer’s cost to 1 Development permit fee covers the sprinkler inspection fee 4 DCC fee based on Mainland area DCC rate; Queensborough install the hookups is required. Other potential development costs include letters of 1 Building permit fee based on application of Employment Lands Incentive Program area DCC fee would be $648,000 credit, landscape/street improvements, amenity contributions and other fees. Please 1 DCC fee based on Town Centre Commercial DCC rate with Employment 5 Sprinkler inspection fee included in building permit fee consult each municipality for more information on additional requirements. Lands Industrial Incentive Program applied (50% up to $50,000). 6 Rezoning application fee covers development permit fee 2 Administration, processing and sprinkler inspection fees 7 Sewer and water connection fees included in administration and processing fees included in the application and permit fees 8 Floor area exemptions may be available on DCC fee depending on specific development 3 DCC rates vary for development in Campbell Heights and Highway 99 Corridor. 8 Regional Office Cost of Business Survey — Fall 2018
M ETRO VANCOUVER CHAPTER
Timing
2018V ANCOUVER Rank Municipality CHAPTER Pre-Application Rezoning Process Development Permit Subdivision Building Permit 2018 Approval 2016 Approval Percentage Design Review (days) (days) Process (days) Approval (days) (days) Timing (days) Timing (days) Change 1 City of Chilliwack N/A 60-120 Concurrent Concurrent Concurrent 120 90 33% 1 Township of Langley 30 60-120 Concurrent Concurrent Concurrent 120 120 0% 1 City of Maple Ridge N/A 60-120 Concurrent Concurrent Concurrent 120 150 -20% 1 District of Mission 30 60-120 Concurrent Concurrent Concurrent 120 300 -60% 5 City of Langley N/A 60-120 Concurrent Concurrent <60 180 120 50%
5GREATER VANCOUVERCity of Delta CHAPTER N/A 60-120 Concurrent Concurrent <60 180 150 20% 5 City of Richmond N/A 120-180 Concurrent Concurrent Concurrent 180 150 20% 5 City of Abbotsford 14-21 120-180 Concurrent Concurrent Concurrent 180 210 -14% 5 City of Port Coquitlam N/A 120-180 Concurrent Concurrent Concurrent 180 330 -45% 5 City of New Westminster 42 120-180 Concurrent Concurrent Concurrent 180 360 -50% 11 City of Port Moody 60 180-240 Concurrent Concurrent Concurrent 240 >180 33% 11 City of White Rock 14 180-240 Concurrent Concurrent Concurrent 240 240 0% 11 City of Burnaby N/A 180-240 Concurrent Concurrent Concurrent 240 >330 -27% 11 City of Pitt Meadows N/A 180-240 Concurrent Concurrent Concurrent 240 >210 14% 15 City of Surrey 28 120-180 Concurrent Concurrent 60-120 300 210 43% 16 City of Vancouver N/A 240-365 Concurrent Concurrent Concurrent 365 >180 102% 16 District of North Vancouver 90 240-365 Concurrent Concurrent Concurrent 365 240 52% 18 District of West Vancouver 60 180-240 Concurrent Concurrent 120-180 420 270 56% 18 City of North Vancouver 14-21 180-240 Concurrent 60-120 <60 420 360 17% 20 City of Coquitlam 90 365+ Concurrent Concurrent 60-120 485 210 131% Increase from 2016 survey Decrease from 2016 survey
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M ETRO VANCOUVER CHAPTER
Permit Data
cross the Metro Vancouver region, Building Permits Issued for New and Major Renovation of Office Buildings in 2017 V ANCOUVER CHAPTER Adevelopment activity has been steady with a significant volume of Municipality Total Construction Value Total Number of Building Permits building permits being issued. The City District of Mission $772,000 3 of Richmond leads this activity with 155 City of North Vancouver $21,535,000 20 building permits issued for new and major District of West Vancouver $0 0 renovation of office buildings in 2017. City of Delta1 $19,781,343 53 The City of Delta and the City of Langley Township of Langley $17,435,000 4 issued large numbers of building permits City of Chilliwack $2,741,000 6 GREATER VANCOUVER CHAPTER as well, at 53 and 84, respectively. It is City of White Rock $0 0 important to note, however, these two 2 municipalities submitted permit volumes City of Surrey $56,338,097 6 for all commercial, not just office. In City of Maple Ridge $0 6 total, these three municipalities have City of New Westminster $2,055,380 27 approved over $46 million in commercial City of Coquitlam $27,099,726 5 building activity. District of North Vancouver2 $5,095,350 11 City of Richmond $16,771,963 155 City of Pitt Meadows $0 0 City of Port Coquitlam $470,500 2 City of Port Moody $3,218,540 21 City of Langley1 $9,596,306 84 City of Burnaby $12,770,000 6 City of Abbotsford2 $13,282,100 21 City of Vancouver $73,623,965 54
¹ Values include commercial, commercial/mixed-use and institutional for new buildings and additions ² Values include all commercial, commercial/mixed-use and institutional for new buildings only (no additions or renovations)
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M ETRO VANCOUVER CHAPTER
Mill Rates
VnANCOUVER previous editions, CHAPTE thisR publication has addressed the 2016 2018 Municipality 2018 Commercial Mill 2018 Residential Mill Commercial-to- Iextraordinary gap between residential and commercial mill rates, Rank Rank Rate (Class 6) Rate (Class 1) Residential Tax Ratio namely how the latter places a significantly higher tax burden on business owners over residents. Since 2016, municipalities have 8 1 City of Surrey 1.806 1.806 1.000 reported an overall decrease in Class 6 commercial mill rates by 1 2 City of Chilliwack 8.093 3.368 2.403 approximately 28.29%, yet the overall commercial-to-residential 2 3 City of White Rock 6.013 2.263 2.657 mill rate ratio has increased by 6.25%. 7 4 District of West Vancouver 3.410 1.234 2.765 Higher and lower mill rates will have an overall effect on local 5 5 City of Port Moody 6.925 2.473 2.801 communities, neighbourhoods and businesses. Lower municipal GREATER VANCOUVER CHAPTER 5 6 City of Abbotsford 10.051 3.357 2.995 tax rates have been shown to effectively contribute to business sustainability and increase opportunities for residents such as 4 7 City of Langley 7.678 2.485 3.089 employment opportunities. Conversely, higher business tax rates 14 8 City of Richmond 4.834 1.515 3.191 may negatively impact a business’ profitability and force business 6 9 City of Maple Ridge 9.843 2.996 3.285 owners to pick up and move operations to a lower-tax municipality. 12 10 Corporation of Delta 7.260 2.157 3.366 For 2018, the five municipalities with the lowest commercial-to- 9 11 City of Pitt Meadows 8.978 2.642 3.398 residential property tax burden are: 17 12 District of North Vancouver 5.599 1.593 3.516 n City of Surrey 10 13 Township of Langley 7.886 2.104 3.749 n City of Chilliwack 13 14 City of Port Coquitlam 9.163 2.440 3.755 n City of White Rock n District of West Vancouver 15 15 City of North Vancouver 6.176 1.605 3.849 n City of Port Moody 11 16 District of Mission 12.903 3.223 4.004 The five municipalities with the highest commercial-to- 18 17 City of Burnaby 4.200 1.040 4.040 residential property tax burden are: 19 18 City of Vancouver 5.030 1.244 4.044 n City of Coquitlam 16 19 City of New Westminster 10.42779 2.507 4.160 n City of New Westminster 20 20 City of Coquitlam 8.5844 1.958 4.384 n City of Vancouver n City of Burnaby n District of Mission
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M ETRO VANCOUVER CHAPTER
Mill Rates
Commercial-to-Residential Tax Ratio V ANCOUVER CHAPTER
4.5
4.0
3.5
3.0 GREATER VANCOUVER CHAPTER
2.5
2.0
1.5
1.0
0.5
0.0
City of Surrey City of Langley City of Burnaby City of Chilliwack City of White Rock City of Port MoodyCity of Abbotsford City of Richmond District of Mission City of Vancouver City of Coquitlam City of MapleCorporation Ridge of Delta Township of Langley City of Pitt Meadows City of Port Coquitlam City of North Vancouver City of New Westminster District of West Vancouver District of North Vancouver 2016 2018 12 Regional Office Cost of Business Survey — Fall 2018
M ETRO VANCOUVER CHAPTER
NAIOP Development Features
KingV ANCOUVER George CHAPTE HubR by PCI Developments Project Description King George Hub is PCI Development’s multi-phase, transit-oriented development located in Surrey City Centre at King George Boulevard and Fraser Highway adjacent to the Expo Line’s first SkyTrain Station and two additional future transit stations. The first phase includes the already completed 185,000-square-foot Coast Capital Savings
GREATER VANCOUVER CHAPTER Help Headquarters, housing over 700 employees and significantly improving the area. The second phase of King George Hub is now under construction to be completed in Q4 2021 and includes: n 738 residential units in two 39 and 28-storey towers which sold out in fall 2017; n 160,000-square-foot 15-storey LEED® Gold Class A Office Tower with major tenants to be announced in 2019; n 100,000-square-foot of commercial retail space integrated with public plazas to create a “High Street” that promotes pedestrian flow through the site in connection with transit and Surrey Memorial Hospital. Retail announcements to follow in 2019. Future phases include additional retail and over 1,500 residential units in 4 towers.
400 West Georgia by Westbank
Project Description 400 West Georgia by Westbank will provide 25 storeys of office space, ground-level retail and iconic architecture in Vancouver’s downtown core connecting the urban fabric between the Central Library and Telus Garden. The project includes 375,000 square feet of office and retail space anticipated to house 1,500 to 1,700 new jobs perfectly situated near rapid transit infrastructure. Deloitte is anchor tenant in the building occupying 10 floors at the top of the tower, and Spaces co-working group is taking eight lower office floors. The project is now under construction and is anticipated to be completed in Q4 2020. Regional Office Cost of Business Survey — Fall 2018 13
M ETRO VANCOUVER CHAPTER
Commercial Real Estate Commercial Real Estate
Awards of Excellence Awards of Excellence galaV ANCOUVER CHAPTER salutes industry standouts
Four hundred delegates from the business estate industry within the Metro Vancouver PRESENTED BY: community attended the NAIOP Vancouver area for 2016-17. Finalists for each category and Business in Vancouver Commercial Real were previously announced, with the winners Estate Awards of Excellence gala May 17 at announced live at the gala MCed by Rob the Fairmont Waterfront Hotel. The awards Macdonald of MacdonaldGREATER Development VANCOUVER CHAPTECorp.R • recognized excellence in the commercial real
THE 2018 COMMERCIAL REAL ESTATE AWARDS OF EXCELLENCE WINNERS ARE: Best Office Development: Manulife – 980 Howe Best Office Lease: Nickel Building Best Industrial Lease: Loblaw Properties West Inc., T&T Supermarket Best Retail: NorthWoods Village Best Developing Leader: Ted Mildon Best Mixed-Use Development: Solo District Best Industrial Development: Delta Link Business Park Best Investment Transaction: Willingdon Business Park Best Tenant Improvement: 777 Dunsmuir – KPMG Offices Judges’ Choice: Parq Vancouver 14 Regional Office Cost of Business Survey — Fall 2018
M ETRO VANCOUVER CHAPTER
Municipal Update
V ANCOUVER CHAPTER
GREATER VANCOUVER CHAPTER
unicipalities continuously evaluate ways in City of Port Coquitlam Mwhich existing and new policy can provide Commercial Official Community Plan Policies and direction to guide and encourage economic growth Development Permit Areas are under review. in communities. The following municipal planning initiatives are underway and could have significant City of Richmond impacts on development opportunities, revitalization and Industrial Land Intensification Study underway. employment intensification: District of West Vancouver City of Abbotsford Ambleside Town Centre Plan underway. City Centre Plan and Historical Downtown Neighbourhood Plan underway. Township of Langley Williams Neighbourhood Plan underway. City of Burnaby The Metrotown Downtown Plan was approved in 2017 City of Vancouver and requires 25% of floor area within mixed-use sites City Core 2050 and a number of interrelated planning to be commercial/office uses. When sites are designated programs focused on creating a shared future vision for as mixed-use and contain existing office space, 100% the economic, cultural and social heart of the city and replacement is required. Maple Ridge region. The interrelated planning programs include a Employment Land Investment Incentive Program review of Vancouver’s economy and employment lands City of Chilliwack underway. Additional area planning is anticipated along and the Broadway Corridor Planning Program. Ongoing policy and bylaw review to ensure the Lougheed Corridor and Albion Flats. diversification, employment opportunities, revitalization *Most of the above policies are subject to council and/or of downtown Chilliwack and job creation in anticipation City of Pitt Meadows staff approval. of continued population increases. Official Community Plan Review underway. Regional Office Cost of Business Survey — Fall 2018 15
M ETRO VANCOUVER CHAPTER
Office Trend: WELL Building Standard
V ANCOUVER CHAPTER Investing in the health and wellness of people has a clear return on investmentGREATER VANCOUVER CHAPTER
Sound Bolsters occupant health and well-being through the identification and mitigation of acoustical comfort parameters that shape occupant experiences in the built environment.
Materials Reduces human exposure to hazardous building material ingredients through the restriction or elimination of compounds or products known to be toxic and the e spend approximately 90% of our Investing in the health and wellness of Light promotion of safer replacements. Wtime indoors. Through measurable people has a clear return on investment. A Supports visual acuity by setting a design interventions, environments should WELL-certified building helps improve threshold for adequate light levels and Mind be optimized and tested to support health health and well-being across 10 concepts requiring luminance to be balanced Promotes mental health through policy, and well-being. The International WELL of building performance: within and across indoor spaces. program and design strategies that seek to Building Institute (IWBI) is leading the address the diverse factors that influence global movement to transform buildings Air Movement cognitive and emotional well-being. and communities in ways that help people Establishes requirements in buildings that Promotes movement, physical thrive. IWBI delivers the cutting-edge promote clean air and reduce or minimize activity and active living and Community WELL Building Standard, the first to the sources of indoor air pollution. discourages sedentary behaviours through Supports access to essential health be focused exclusively on the ways that environmental design strategies, programs care, workplace health promotion and buildings, and everything in them, can Water and policies. accommodations for new parents while improve our comfort, drive better choices Limits the presence of sediment and water- establishing an inclusive, integrated and generally enhance, not compromise, borne pathogens in water designated for Thermal Comfort community. our health and wellness. human contact. Promotes human productivity and ensures a maximum level of thermal There are currently over 1,000 WELL Nourishment comfort among all building users through projects encompassing 200 million square Promotes the consumption of fruits improved HVAC system design and feet across 39 countries. To start a project and vegetables by making them easily control and by meeting individual thermal or join the healthy building movement, accessible to occupants. preferences. visit wellcertified.com.
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Subscribe at biv.com/subscribe or call 604.608.5147 Board of Directors 2018
Back, left to right: Anthio Yuen, Developing Leaders Chair, GWL Realty Advisors Inc., Marvin Haasen, Development Issues & Government Relations Co-Chair, Madison Pacific Properties Inc., Jarvis Rouillard, Past President, PCI Developments, Steffan Smith, President (Jan-Jun '18), GWL Realty Advisors Inc., Andrew Laurie, Membership Chair, JLL, Dan Jordan, Breakfast Committee Co- Chair, Colliers International, Tony Tse, Treasurer, KPMG, Don Fairgrieve-Park, Development Issues & Government Relations Co-Chair, QuadReal Property Group, LP., Pedro Tavares, Development Issues & Government Relations Co-Chair, Altus Group Ltd. Front, left to right: Carolina Miranda, Administrator, NAIOP Vancouver, Stephen Smith, Breakfast Committee Co-Chair, Manulife Real Estate, Darlene Hyde, BC Real Estate Association, Janay Koldingnes, Events Committee Chair, Dialog Design Missing: Ryan Berlin, Communications Chair, Rennie Group, Beth Berry, Interim President, Beedie, Jason Kiselbach, Member at Large, CBRE Limited Brokerage Services, Chris MacCauley, National Director, CBRE Limited, Conrad Rego, Legal Counsel, McCarthy Tetrault LLP
NAIOP Vancouver represents commercial Why become a member of NAIOP? real estate developers, owners and investors of office, industrial, retail and mixed-use properties. It provides strong advocacy, • Legislative voice with municipal and provincial officials—through our Development Issues and education and business opportunities and Government Affairs Committee. connects its members through a powerful North American network. • Local networking opportunities through monthly breakfast speaker series and events. NAIOP truly reflects the pulse of the • Mentorship Program and special events for Developing Leaders, under 35 years of age. commercial/industrial/development industry in Greater Vancouver. It provides its diverse • A biennial Commercial Real Estate Awards of Excellence Gala, to recognize the best in the industry. membership with a valuable network of industry professionals, a powerful forum • Industry and market information—through breakfast speakers, special publications and the chapter to exchange ideas, economic information website, www.naiopvcr.com and market news, and a collective voice to lobby for regulatory debate and change. • Access to the NAIOP Canada Sustainability Blog’s wide collection of articles, reports, case studies NAIOP works for members year round to and other sustainability-related works enhance market knowledge and exposure, to help streamline the industry, and provide a • The Annual Cost of Business Report—which reviews the effectiveness of local municipalities in healthy sprinkling of camaraderie and fun. addressing office and industrial development projects. The Vancouver Chapter of NAIOP is one of 51 chapters within an extensive network • Educational opportunities—through seminars, webinars and symposiums, including the annual that represents the interests of developers and owners of industrial, office and Developers’ Symposium. related commercial real estate throughout North America. NAIOP’s Award Winning • Biweekly e-bulletins which keep the membership up to date on industry news and events. annual Cost of Business Survey provides a benchmark for performance of over 21 • Active online community, allowing members to join the conversation, grow their networks, and municipalities in the Metro Vancouver area obtain the latest commercial real estate news at @NAIOPVancouver & NAIOP Vancouver Group with respect to their development costs and (LinkedIn) ease of doing business.
For more information on NAIOP – Vancouver Chapter or any of its events, please visit the website at www.naiopvcr.com, email [email protected] or call 604.601.5106