Metro Vancouver Office

CBRE Limited

MarketView Metro Vancouver Office

Notable Lease Transactions Global Research and Consulting Metro Vancouver Office

Size (SF) Tenant Address www.cbre.ca/research Fourth Quarter 2011 Average Asking Lease Rate Rate determined by multiplying the asking net Continuing on a trend of decreasing vacancy and Construction has already begun on the lot beside 103,033 Sierra Wireless 13811/13911 Wireless Way, Richmond lease rate for each building by its available positive absorption from earlier in the year, the the Marine Building at West Hastings and Burrard space, summing the products, then dividing by Metro Vancouver office market posted strong Street, where Oxford’s 1021 West Hastings project the sum of the available space with net leases 100,000 SNC-Lavalin 745 Thurlow Street, Vancouver market fundamentals over the fourth quarter of is being built on a speculative basis and whose for all buildings in the summary. 2011. As was forecast last quarter, market 8,000 SF floorplates are expected to attract Net Leases conditions continued to steadily improve, helping Vancouver’s diverse tenant base with typically 62,330 TD Bank Group 700 West Georgia Street, Vancouver Includes all lease types whereby the tenant pays both core and peripheral markets witness positive smaller occupancy requirements. an agreed rent plus most, or all, of the operating gains. TELUS/Westbank’s multi-phased and mixed-use expenses and taxes for the property, including Quick Stats TELUS Garden development is also expected to 54,390 Bell Canada 2980 Virtual Way, Vancouver utilities, insurance and/or maintenance After reaching peak vacancy at mid-year 2010, begin construction downtown in 2012, while expenses. the Metro Vancouver office market continued to rezoning applications have been submitted for Change from last witness quarter-over-quarter decreases, with the both Manulife’s large floorplate 980 Howe Street 20,256 Navigata Communications 3555 Gilmore Street, Burnaby Market Coverage Current Yr Qtr. Includes all competitive office buildings 10,000 fourth quarter of 2011 continuing the trend. The office project and Credit Suisse/Swissreal’s regional vacancy rate improved to 8.0%, heritage-inspired The Exchange office tower. In the square feet and greater in size. Vacancy 8.0% 18,000 Clevest Solutions Inc. 13911 Wireless Way, Richmond backstopped by several large tenancies within the peripheral markets, construction activity is Net Absorption Downtown, Burnaby, and Richmond markets. expected to resume at Ivanhoe Cambridge’s The change in occupied square feet from one Lease Rates $19.95 psf Leasing activity was relatively balanced across all Metrotower III development, which was on hold period to the next. Net Absorption 294,085 SF submarkets this quarter, a phenomenon that was since the recession but will now be offered on a Metro Vancouver Submarket Map Net Rentable Area somewhat different in previous quarters where the speculative basis. Onni’s Central Development The gross building square footage minus the New Supply** 0 SF downtown core often received the majority of along with Rize Alliance’s Containers (Phase I) elevator core, flues, pipe shafts, vertical ducts, leasing activity. The downtown vacancy rate project have begun construction while Panorama balconies, and stairwell areas. dropped for the seventh consecutive quarter to Place and Grandview Business Centre in Surrey *The arrows are trend indicators over the 3.4% led primarily by gains within the Class A and were recently completed and came to the market Occupied Square Feet specified time period and do not represent a positive or negative value. (e.g., absorption B markets, while vacancy declined in the Burnaby, with strong strata pre-sales activity. Building area not considered vacant. could be negative, but still represent a Richmond and New Westminster submarkets to positive trend over a specified period.) 12.9%, 21.4% and 11.9%, respectively. Looking ahead, market activity is expected to be Under Construction **Denotes Competitive Lease (Non-Strata) Buildings which have begun construction as Product Only. tepid over the next several months as global evidenced by site excavation or foundation work. Net absorption in the fourth quarter was strong, economic conditions are being observed with over 294,085 SF of positive absorption cautiously. As was forecast during the third quarter Available Square Feet Hot Topics overall. The downtown core once again led with of 2011, some tenants will be hesitant, but limited Available Building Area which is either physically • Metro Vancouver’s vacancy rate 161,914 SF of positive absorption alone. Total supply and relatively strong fundamentals will vacant or occupied. absorption for the year stands at 860,383 SF, a continue to support market activity. Downtown declined to 8.0% led by balanced Availability Rate marked improvement from 235,004 SF in 2010. tenants with lease expiries over the next 12-24 Available Square Feet divided by the Net growth across the region. months are expected to see upward movement in Rentable Area. Regional office development continues to be a pricing, while greater preference for renewals and • Vacancy in the downtown submarket major focus within the region, as decreasing early term restructuring is also likely. Accordingly, Vacant Square Feet declined to a near-record low of supplies of quality space on the market support landlords with long-term exposure will solidify their Existing Building Area which is physically vacant 3.4% this quarter. demand for new supply. With over 190,000 SF of portfolios over the next year as supply conditions or immediately available. pre-leasing in place between McCarthy Tetrault change. While pricing conditions will remain Vacancy Rate • Suburban vacancy declined to 12.9% and SNC-Lavalin, Bentall Kennedy’s 745 Thurlow favourable for suburban tenants in the short-term, Vacant Building Feet divided by the Net Rentable in the fourth quarter. development is anticipated to break ground in growing demand should start to narrow the gap Area. early 2012 with many expecting the building to be for landlords over the long-term. • Several highly anticipated office an attractive option for larger tenants. Market Area Descriptions Normalization development projects have broken Due to a reclassification of the market, the base, (1) DOWNTOWN VANCOUVER consists of 21.9 million SF (51.4%) of the office market inventory. number and square footage of buildings of ground in the region, including 1021 (2) THE BROADWAY CORRIDOR consists of 4.2 million SF (10.1%) of the office market inventory. previous quarters have been adjusted to match West Hastings, Central, Containers Metro Vancouver Historical Absorption Absorption Vacancy (3) BURNABY consists of 7.6 million SF (17.5%) of the office market inventory. the current base. Availability and Vacancy figures Phase I, Metrotower III and Merchant (4) RICHMOND consists of 3.6 million SF (8.7%) of the office market inventory. for those buildings have been adjusted in Square. 300,000 12% (5) NORTH SHORE consists of 1.8 million SF (4.3%) of the office market inventory. previous quarters. 250,000 10% (6) SURREY consists of 2.5 million SF (6.0%) of the office market inventory. SF 200,000 8% (7) NEW WESTMINSTER consists of 1.1 million SF (2.7%) of the office market inventory. 150,000 6% For more information regarding the 100,000 4% MarketView, please contact: 50,000 2% Anthio Yuen, Senior Research Analyst 0 0% CBRE Limited

This disclaimer shall apply to CBRE Limited, Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein (the “Information”) has not 600 – 111 West Georgia Street, Vancouver, BC 4Q10 1Q11 2Q11 3Q11 4Q11 been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume V6E 4M3 Canada any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property T. 604.662.3000 F. 604.684.9368 described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. [email protected] © 2012 CBRE Limited MarketView Metro Vancouver Office Fourth Quarter 2011 7 Page Page , of an in % to the five core best the the 9 . across in of strong vacancy 12 start seventh the coupled 2012 CBRE Limited 2012 result over quarter improved of to © best and the growth however, show vacancy downtown ; representing third supply projects much should the , to % decline grow % the the 0 . 9 indicator new and new . absorption to marked months in 13 balanced region 12 as (bps) SF an since perform 24 by to - the continued to Limited 383 12 quarter below , led rate positive in point fell things . Vacancy continued % . of 860 core next 0 also . years basis has space 8 fourth absorption, SF Purchaser Dundee REIT 0896584 B.C. Ltd. 0919763 B.C. Ltd. (40% Int.) 0919952 B.C. Ltd. (49% Int.) 0911380 B.C. Ltd. (11% Int.) Dales Properties Ltd. Turf B.C. Ltd. Holdings 1623 Ltd. change the dropped vacancy over to rate 70 continued two markets the to a will office 285 fell over , of last demand downtown lowest positive for market well, 294 cycle rate totals vacancy of the Burnaby the the posting . As the . , ($/SF) numbers . number YTD % over demand low a 4 suburban 2014 time . vacancy While recorded $251 $205 $174 $517 3 levels quarter Price $413 $356 in suburban in . markets, construction to first . bringing The activity absorption quarter . - 2010 the fallen region regional continued market delivered The the performance, has declined 2008 eight suburban and quarters The quarter, from consecutive market with strong upcoming be Size (SF) Size 94,983 22,781 41,522 21,675 7,162 3,190 4Q11 4Q11 $8,500,000 $3,775,000 $2,550,000 Price $23,800,000 $9,400,000 $1,650,000 3Q11 3Q11 2Q11 2Q11 Aveune Avenue nd Urban th 1Q11 1Q11 873 873 Beatty Street Address Granville 8100 Avenue North4300 Fraser Way King George9656 Boulevard 128 West 8 West1623 2 Suburban 4Q10 4Q10 Transactions 0 Sale Sale 50 350 300 250 200 150 100

8% 6% 4% 2% 0% Vacancy

Net Absorption Net 20% 18% 16% 14% 12% 10% Richmond Richmond Vancouver Burnaby Surrey Vancouver SF (000s) SF Vancouver Market Top Top

MarketView Metro Vancouver Office Fourth Quarter 2011 2 . Page Page C . job the and B than upon . While in S Europe . . affected for $8 .83 $8 U $15.02 $37.28 $32.85 $26.14 $19.01 $25.51 $24.23 $22.55 $21.38 $18.59 $21.22 $22.90 $19.12 $15.57 $15.26 $19.04 $19.00 $16.76 $12.19 $15.64 $22.75 $16.11 $15.54 $17.35 $23.16 $14.29 $10.45 $21.23 $18.37 $14.17 $11.71 in $19.95 pace residential be 2012 CBRE Limited 2012 the © growth the depend November, in issues demand confidence in Rate($/SF/YR) and will expected moderate overall % 0 Avg. AskingAvg. Lease is . year, 7 down market economic more ------to consumption growth next support winds fell to industries the overall much ongoing higher a rate as Completed at Over and economic related . continue damper grew to infrastructure and Construction (SF) quarter cools on should demand 722 695 regional - 5,988 4,478 2,856 4,366 9,917 3,558 7,975 4,871 3,851 4,917 2,636 9,035 7,334 2,269 fourth ------unemployment - - 32,075 46,832 21,475 10,836 27,326 21,880 52,764 51,092 16,681 12,944 71,699 52,694 63,352 17,824 - - - - continue market 102,116 161,914 economy China 294,085 . the S spending . construction domestic in Further U from in 4Q 2011Net4Q . . the regional Absorption (SF) Vancouver federal development exports region improved Europe The expected and the growth as

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39.5 21.4 10.2 21.9 15.0 17.8 14.9 14.0 11.9 10.3 10.8 16.5 24.0 12.9 16.8 22.9 23.6 Vacancy Vacancy (%) Rate Unemployment : Rate(%) Canada 4% 2% 0% 8% 6% 10% of GDP Unemployment Area Board 737,730 288,403 210,876 589,296 275,766 442,474 523,721 225,423 743,806 752,877 301,015 508,294 850,338 1Q12* 4,349,203 5,778,937 7,679,528 4,123,211 2,566,621 1,075,938 1,922,011 7,600,094 1,501,980 1,278,738 3,529,862 1,797,698 1,540,488 1,245,175 1,645,853 4,249,660 2,410,846 2,824,763 Area (SF) Area 21,930,879 Metropolitan 42,750,752 Conference Net RentableNet : Forecasted Source Vancouver * 1Q12* l Class C Class C Class Class C Class C Class C Class Class C Class Class C Class Class A Class Class A Class A Class A Class Class A Class A Class Class A Class Class B Class B Class Class B Class B Class B Class Class B Class Class B Class 4Q11 Subtota Subtotal Subtotal Subtotal Subtotal Subtotal Subtotal Class AAA Class Class AAA Class AAA Class Class AAA Class BuildingClass 3Q11 2Q11 $0 $20 $40 $80 $60

$100 Submarket Billions) ($ GDP New Westminster New MarketTotal North North Shore Richmond Burnaby Broadway Corridor Broadway Downtown Surrey Economic Conditions (Currentand Forecasted) Office Market Statistics Market Office MarketView Metro Vancouver Office Fourth Quarter 2011 3 Page Page Kennedy, 9,500 SF 9,500 Swissreal Avigilon’s year high in high year - 2012 CBRE Limited 2012 © Bentall Xstrata’s leasing commitments commitments leasing - and Credit Suisse/ Credit and ced this quarter, with nearly all all nearly with quarter, this ced ations in vacancy are expected as theas expected are vacancy in ations pre confirming lan Manulife mber of projects moving from the from moving projects of mber at 2.4% and 3.4% respectively, while respectively, 3.4% and at 2.4% upply to the market. market. to the upply gs gs ctu ly conditions. The overall vacancy posted posted vacancy overall The conditions. ly rket witnessed a minimal 7,975 SF of SF 7,975 minimal a witnessed rket space, most of which was seen among among seen was ofmost which space, 3.1%. The Class AAA market posted a a posted market AAA Class The 3.1%. , are countered by a number of major major of number a by countered are , office market reach a threea reach market office es sectors, emerging demand was also also was demand emerging sectors, es nu ccupancies this quarter include quarter this ccupancies her hand, experienced 16,681 SF of SF 16,681 experienced hand, her d remains positive, the latter half of 2012 half latter the positive, remains d w s w at at er ma ns) vic ive upp ot 2012 will see some interesting market interestingsome see will 2012 e o e ren /Reliance, Pattison 12,874 SF occupancy at 401 West Georgia Street, as well as as well as Street, Georgia West 401 at occupancy SF 12,874 24 months, the third and fourth quarter of quarter fourth and third the months, 24 Amec’s - 000 , 400 , 9 $ Street for Street SF) Street Street & Hues 22,218 SF and and SF 22,218 & Hues Georgia 780 , Georgia 19 Street West ( Street Pender Rythm Thurlow West 885 West Street 745 at Burrard 700 Georgia at at SF are well in their construction plans, while several other groups, including including groups, other several while plans, construction theirin well are 555 1095 SF Beatty SF West at at 309 , 000 SF , SF 873 330 13 , 401 Westbank 62 at 100 714 343 , , 9 SF 10 renewed purchased leased 784 - , renewed LLP leased Ltd out” and space gets shuffled within the market. The Class A and Class B posted substantial decreases in vacancy vacancy in decreases substantial posted B Class and A Class The market. the within shuffled gets space out” and . 12 pre leased - . C . Inc Group Kalef B leased Lavalin Lavalin Gold - - Bank 896584 SNC TD Koffman Amec SNC New Significant Transactions • • • • • • • DOWNTOWN VANCOUVER DOWNTOWN Vancouv Downtown thesaw of 2011 quarter fourth the activity, leasing positive of quarter consecutive seventha on Continuing ser business and engineering legal, resource, natural including of areas a variety from demand by Supported levels. occupancy ba was market downtown the across activity Deal industries. technology/communication and government education, from witnessed absorption. positive in gains witnessing classes s limited among accordingly rise rentsand decline vacancies as conditions market favourable to experience continue Landlords of 2008 quarter fourth the since vacancy downtown lowest the representing to 3.4%, decline quarterly (bps) points basis 70 a flu SF),small (60,011market on the space of vacant amount limited extremelyto the due but to 1.4%, increase bps 10 minimal “bottoms market to 6.8%. decline quarterly bps 40 a experienced C market Class the of posit SF 450,273was quarter fourthof the end at themarket office downtown for the figures (YTD) absorption to date Year AAA Class The respectively. absorption positive SF of 51,092and SF 102,116 with quarter this sectors B Class and A Class the on the C space Class conditions. supply limited extremely under expected is previously, mentionedas but absorption, negative Notabl class. building this in absorption quarterly average of SF 12,859the with consistent beenhas and absorption positive Street,Beatty at 858 expansion sublease 28,572 Street. Pender West at 700 sublease buildin several With 2004. since witnessed not has market downtown thethat cycle development a begin will months 24 next The of ne delivery the awaiting eagerly are 2016and 2015 2014,in expiries lease with tenantsmany start dates, construction and TELUS/ and Properties Oxford the on depending moderately increase to forecasted are rates Vacancy well. as plans development their up to ramp expected are to 2016. 2014from SF million 1.68 total over could which stage to confirmed proposed 12 next over volatility littleto show expected are conditions market overall While locatio (multiple HSBC including market, downtown the in tenantsof number a of consolidations and vacancies theas activity, t long term the While Street.Hamilton at1132 Technicolor and Street Granville at 200 Critical Vision including occupancies fluctuations.term short experience accordingly may

MarketView Metro Vancouver Office Fourth Quarter 2011 6 Page Page 2012 CBRE Limited 2012 © value (LTV) rates value - to - loan % % s C market posted theposted market C s 84 g on the transaction transaction theon g . 77 nted by robust construction robust by nted year money and selective 10, selective and money year . 3 rate down 60 bps 6.6%. bps to 60 down rate las - al office occupiers to purchase purchase to occupiers officeal 2 osted a 290 bps increase to increase bps 290a osted din - o 10.3%. Countering the Countering o 10.3%. onary note to both lenders and and lendersto both note onary cy cy - product is coming to the market to the coming is product es. The overall vacancy rate fell rate vacancy overall The es. ime favoured t p t loc sses within the Class A and C and A Class the within sses % territory at 3,201 SF. at 3,201 territory e t e a slight 40 bps quarterly increase to increase quarterly bps 40 slight a learly, Canadian real estate real Canadian learly, acancy in Carnarvon Centre (737 Centre Carnarvon in acancy uti g market, as occupancy levels have have levels occupancy as market, g % o five lo ass ore 25 . C . second mortgages, etc. Interest rates rates Interestetc. mortgages, second n v n ng . ive sin e t e 22 h as Grandview Business Centre and and Centre Business Grandview as h . 3 2 : : and suc Rate Rate USD Mortgage Mortgage 9761 . $ : Dollar Commercial Commercial Year - Year - 5 10 Canadian • • • Street led to the increase in the Class B vacancy rate, with 25,627 SF becoming available over the fourth quarter. Overall, Overall, quarter. fourth the over available SF becoming 25,627 with rate, vacancy B Class thein increase to the led Street nd % % 15 . 43 . 2 % 1 : : 00 . 3 Bond : Bond Rate Canada Canada year money. year - Prime Year - Year - 5 10 Bank • • Quick Stats Quick • Private money is readily available for most requests: condo, custom home, infill, student housing, self storage, land, first land, storage, self housing, student infill, home, custom condo, requests: for most available readily is money Private transaction. theof profile risk theon depending to 15.0%6.0% of range the incost will sources capital private from Cap rates continue to hover around 2007 levels, especially for quality assets, as demand for product has outweighed supply. M supply. outweighed has product for demand as assets, for quality especially levels, 2007 around to hover continue rates Cap market. of the featurea still is bidding aggressive and strong be to continues appetite buyer but 20 and 25 and 20 Despite the extreme volatility in the bond market, spreads have only moved up modestly, hovering around 1.75% to 2.50%, depen to 2.50%, 1.75% around hovering modestly, up moved only have spreads market, bond thein volatility extremethe Despite of on abundance an is There floor. a seeking lenders some with etc.) terms, loan covenants, sponsorship, LTV, type, (property Notwithstanding the above, the Canadian mortgage market remains very active with an appetite for most product types, with the with types, product most for appetite an with active very remains market mortgage Canadian theabove, the Notwithstanding to 75.0%. up available debt with range 60.0% to 55.0% the in The domestic mortgage market can be characterized as active but participants are carefully watching trends in foreign markets foreign in trends watching carefully are participants but active as characterized be can market mortgage domestic The a ca adds Europe in events surrounds that uncertaintythe but group peer economic our amongst strongest the are fundamentals borrowers. CAPITAL MARKETS CAPITAL Carnarvon Street), where 28,797 SF was removed from the market. Positive market activity in New Westminster was further compl furtherwas Westminster New in activity market Positive market. the from removed SF was 28,797 where Street), Carnarvon developed. be to continue Square Merchant and District Brewery theas such of projects number where activity The New Westminster office market showed some positive movement of the fourth quarter, with vacancy declining in all asset cl asset all in declining vacancy with quarter, fourthof the movement positive some showed market office Westminster New The C The respectively. 14.0%, and to 14.9% bps 460 and bps 170 fall vacancy had market B and A Class the while to 11.9%, bps 490 i drop to major a attributed mostly was C market Class thein decline The to 5.2%. bps 790 vacancy, drop in quarterly largest increase in vacancy was the Class B market, which saw a number of deals in the 1,000 SF to 2,000 SF range help move the vacan the move help SF range SF2,000 to 1,000 the in of deals number a saw which market, B Class thewas vacancy in increase posit into slightly YTD absorption brought which quarter, the over absorption of negative SF 4,366posted market the Overall, The vacancy rate in the North Shore office market increased 20 bps over the fourth quarter to 6.2% lead primarily by marginal by primarily lead 6.2% to quarter fourththe over bps 20 increased market office North Shore the in rate vacancy The increas bps 90 a witnessed C market Class the while to 4.3%, vacancy in increase bps 80 an posted market A Class The markets. Panorama Place seeing strong sales activity. Accordingly, the desire to own space has had a negative impact on the office lea office theon impact negative a had has space to own desire the Accordingly, activity. sales strong seeing Place Panorama market. to the introduced were projects office new time same at the declined 15.0%. A new availability at 7455 132 7455 at availability newA 15.0%. from demand Ongoing SF. 40,229 positive to absorption YTD bringing quarter, this absorption of negative SF 10,835 was there projects with Surrey, in developments officestrata build to developers several spurred has property office of lease instead Market conditions remained relatively unchanged over the fourth quarter of 2011 in Surrey with the overall vacancy rate posti rate vacancy overall the with Surrey in 2011of quarter fourth the over unchanged relatively remained conditions Market B marke Class the while respectively, 2.7%, and to 21.9% declines quarterly posted both rate C vacancy and A Class The 17.8%. SURREY, NORTH SHORE & NEW WESTMINSTER NEW & SHORE NORTH SURREY, MarketView Metro Vancouver Office Fourth Quarter 2011 Page Page 5 2012 CBRE Limited 2012 © 4Q11 rst quarter of 2012. The of 2012. quarter rst fi posting a160 bps quarterly bps a160 posting negative declines at the end of end theat declines negative ced by the fact that YTD YTD thatfact theby ced d, d, nearly a 50% decline in vacancy vacancy in decline 50% a nearly ntinues to persist within the Class Class the within to persist ntinues 3Q11 ed inventories decline among top among decline inventories ed down 260 bps from last quarter to quarter from last bps 260 down er g the majority of the demand over over demand of the majority the g der Corporation at 4664 Lougheed Lougheed 4664 at Corporation der ne with forecasted trends as theas trends forecasted with ne th quarter of 2011, a trend that trenda 2011,of quarter th co den ng ng li elp 1, tin Tra our (18,762 SF) at 4621 Canada IBM Way, Canada SF)at 4621 (18,762 Teradici 2Q11 1Q11 4Q10 Street Kingsway 3Q10 3777 Gilmore at Way Way SF 3555 at 248 , Virtual 2Q10 SF Virtual 16 256 , 2925 2980 at 20 leased at SF SF plan leased 416 1Q10 , 390 , 12 54 Pension leased renewed Industry Overall Market Vacancy Rate Vacancy Overall Market Communications Q409 – Engineers Forest Canada Bell Navigata IWA CWA 5% 0% Significant Transactions • • • • BURNABY f thein activity market positive witness market office Burnaby the helped growth sector engineering and resource Technology, supply excess While recession. of theonset to the due losses major accumulated had market theafter of 2010 end at the began h have market on the product standalone and block of large availability the and terms lease favourable C markets, Class and B attrac former the with emerged, has space B/C Class and AAA/AClass between distinction clear A Burnaby. in buildings quality year. past the in more was 2011of quarter fourththe 13.6%,to increase slight a posted of 2011 quarter third at the rate vacancy the While representi to 10.0%, quarter straight fourth thefor declined rate vacancy AAA Class The to 12.9%. declined vacancy submarket of 201 beginning the from declines quarter over quarter witnessed also has market A Class The year. of the beginning the from the during Kingsway 3777 from of TELUS vacancy SF 92,000 upcoming the with increase term short a see may but at 10.8%, stand of departure to the part in (due16.1% to 2011of quarter third the over vacancy in increase major a sufferedmarket B Class deman least theto show continues C market Class The to 16.5%. decline quarterly bps 40 a small post to managed but Highway), to 24.0%. increase evi is space for quality Demand SF. 307,709 over totals toYTD bringing quarter, thisSF 52,694totalled absorption Submarket to regist continue space C and B Class while respectively, SF 143,368 and SF 340,085 was space A and AAA Class for absorption include occupancies quarter fourth Significant accordingly). space negative of SF 61,316and SF (114,428 2011 Way. Virtual SF)at 2925 (12,416 Engineers CWA and Way, Production SF)3292 at (17,640 Burnaby 25% 20% 15% 10%

MarketView Metro Vancouver Office Fourth Quarter 2011 4 Page Page - classes Road 2012 CBRE Limited 2012 asset Miller © all for 5200 Broadway at SF Place West negative Avenue 354 mand continues to grow to grow continues mand , Delf th modest decreases in vacancy vacancy in decreases modest Class B and C markets posted posted C markets and B Class 6 8 de was lass AAA and A markets this markets A and AAAlass 1333 teady. As well, a number of number a well, As teady. by by 2011. The Broadway corridor only corridor Broadway The 2011. he ng previous quarters, the fourth the quarters, previous ng ill continue to be offered by by offeredto be continue ill ter trend in decreasing vacancy vacancy decreasing in trend ter ew space came available at 3011 available came space ew territory negative to slightly moved at e C e d s d ease to 4.6%, with the Class A Class the with 4.6%, to ease in bsorption. While the Class AAA and A and AAA Class the While bsorption. ori Properties (5,206 SF).Construction (5,206 Properties West s w s f n 23.6% and 39.5%, respectively. The respectively. 39.5%, and 23.6% 13200 SF o years, the Class AAA and A markets markets A and AAA Class the years, o ket leased ncr e a e . to at 990 Ltd absorption 1385 , SF at 10 Virtualink YTD 016 , . SF 8 SF (Canada) 500 , renewed 5 478 . , leased 7 . Ltd Inc Central development officially break ground after significant significant after ground break officially development Central Solutions leased negative Canada Onni’s Secure Canada Sensei to of . S 4 OCE G Intel Lean 2011 • • of • • historical highs in vacancy over the last twlast the over vacancy in highs historical - absorption end total the at YTD Way Way bringing absorption Way (57,073 SF) and the occupancy of PPH ARC Environmental at 13775 Commerce Parkway Parkway Commerce at 13775 EnvironmentalARC PPH of occupancy theSF)and Way (57,073 Alliance’s Containers project and and project Containers Alliance’s Way Wireless Wireless Rize positive Broadway 13911 of / absorption, Broadway Elmbridge 13911 Shellbridge SF West at West 13811 492 SF 6651 , negative at 1333 at 15 1985 of 000 SF at , SF at SF 18 SF 033 SF , posted 950 , 917 , 495 , 4 16 103 475 , 12 Engineering at 10851at Engineering which renewed 11 . Inc quality assets. The overall vacancy rate decreased 140 bps from last quarter to 21.4%, marking a three quar threea marking to 21.4%, quarter from last bps 140 decreased rate vacancy overall The assets. quality renewed renewed - witnessed market Franzen renewed B renewed Inc Motion Solutions Group quarter Wireless Class in the Back Sierra Clevest Genivar D+H fourth leasing activity. activity. leasing - • • • Significant Transactions within the Class AAA and A market. Despite recent preference for renewals among larger tenants in the market, major incentive major market, thein tenants larger among renewals for preference recent Despite market. A and AAA Class the within market. thein movement some in result may and landlords with 2,269 SF of negative absorption and the Class C market posted 32,075 SF of negative absorption this quarter. this absorption of negative SF 32,075 posted C market Class the and absorption of negative SF 2,269 with tenantas fundamentals market in improvements modest by definedbe to continue will market office Richmond the ahead, Looking (12,804 SF) brought quarterly absorption figures to positive territory at 46,832 SF, with YTD figures at 32,290 SF of positiv SF of at 32,290 YTD figures withSF, 46,832at territory to positive figures absorption quarterly SF) brought (12,804 mar B Class the quarter, fourththe in respectively absorption of positive SF 17,824 and SF 63,352 with gains positive posted 3031 Viking Way. Viking 3031 of occupancy The both had vacancy drop to 16.8% and 22.9% respectively in the fourth quarter of 2011. Countering the positive growth within th within growth positive the Countering of 2011. quarter fourththe in respectively 22.9% and to 16.8% drop vacancy had both up rate vacancy the bringing quarter this vacancies several realized which C markets, B and Class thein losses were quarter o SF 28,143 after quarter this 39.5%to quarterlast 25.3% from increase substantial a witnessed particular in C market Class primarily within top within primarily near posting After of 2011. quarter first the during of 23.6% high a reaching after RICHMOND evidenced as of 2011, quarter fourththe over fundamentals leasing in improvement marginal posted market office Richmond The • Significant Transactions • activity is also expected to ramp up as the first phase of phase first the up as ramp to expected also is activity pre Looking ahead, market fundamentals are expected to improve in 2012 following a relatively stagnant period of market activity activity market of period stagnant relatively a following 2012in to improve expected are fundamentals market ahead, Looking deman keep and fluctuationsmarket major from it insulate should which market, theSF on 10,000 above availabilities five has and SF) (5,500 Sensei Lean SF), (10,430 Canada Services including 2012,in space occupy to expected are tenants The except small decreases in vacancy, down 30 bps and 50 bps to 5.6% and 7.7%, respectively. respectively. 7.7%, and to 5.6% bps 50 bps and 30 down vacancy, in decreases small The vacancy rate for the Broadway Corridor increased to 5.8% over the fourth quarter of 2011, up from 5.7% last quarter. Mirr quarter. last 5.7% from up 2011, of quarter fourththe over 5.8% to increased Corridor Broadway thefor rate vacancy The i bps 10 a small posted rate vacancy AAA Class The activity. market robust, not albeit stable, by defined was of 2011 quarter T Mall. Sciences Health at 2389 vacancy SF 12,286 to newpart a in due to 5.2%, vacancy in rise bps 100a experiencing market BROADWAY CORRIDOR BROADWAY MarketView Metro Vancouver Office Fourth Quarter 2011 Page Page 5 2012 CBRE Limited 2012 © 4Q11 rst quarter of 2012. The of 2012. quarter rst fi posting a160 bps quarterly bps a160 posting negative declines at the end of end theat declines negative ced by the fact that YTD YTD thatfact theby ced d, d, nearly a 50% decline in vacancy vacancy in decline 50% a nearly ntinues to persist within the Class Class the within to persist ntinues 3Q11 ed inventories decline among top among decline inventories ed down 260 bps from last quarter to quarter from last bps 260 down er g the majority of the demand over over demand of the majority the g der Corporation at 4664 Lougheed Lougheed 4664 at Corporation der ne with forecasted trends as theas trends forecasted with ne th quarter of 2011, a trend that trenda 2011,of quarter th co den ng ng li elp 1, tin Tra our (18,762 SF) at 4621 Canada IBM Way, Canada SF)at 4621 (18,762 Teradici 2Q11 1Q11 4Q10 Street Kingsway 3Q10 3777 Gilmore at Way Way SF 3555 at 248 , Virtual 2Q10 SF Virtual 16 256 , 2925 2980 at 20 leased at SF SF plan leased 416 1Q10 , 390 , 12 54 Pension leased renewed Industry Overall Market Vacancy Rate Vacancy Overall Market Communications Q409 – Engineers Forest Canada Bell Navigata IWA CWA 5% 0% Significant Transactions • • • • BURNABY f thein activity market positive witness market office Burnaby the helped growth sector engineering and resource Technology, supply excess While recession. of theonset to the due losses major accumulated had market theafter of 2010 end at the began h have market on the product standalone and block of large availability the and terms lease favourable C markets, Class and B attrac former the with emerged, has space B/C Class and AAA/AClass between distinction clear A Burnaby. in buildings quality year. past the in more was 2011of quarter fourththe 13.6%,to increase slight a posted of 2011 quarter third at the rate vacancy the While representi to 10.0%, quarter straight fourth thefor declined rate vacancy AAA Class The to 12.9%. declined vacancy submarket of 201 beginning the from declines quarter over quarter witnessed also has market A Class The year. of the beginning the from the during Kingsway 3777 from of TELUS vacancy SF 92,000 upcoming the with increase term short a see may but at 10.8%, stand of departure to the part in (due16.1% to 2011of quarter third the over vacancy in increase major a sufferedmarket B Class deman least theto show continues C market Class The to 16.5%. decline quarterly bps 40 a small post to managed but Highway), to 24.0%. increase evi is space for quality Demand SF. 307,709 over totals toYTD bringing quarter, thisSF 52,694totalled absorption Submarket to regist continue space C and B Class while respectively, SF 143,368 and SF 340,085 was space A and AAA Class for absorption include occupancies quarter fourth Significant accordingly). space negative of SF 61,316and SF (114,428 2011 Way. Virtual SF)at 2925 (12,416 Engineers CWA and Way, Production SF)3292 at (17,640 Burnaby 25% 20% 15% 10%

MarketView Metro Vancouver Office Fourth Quarter 2011 4 Page Page - classes Road 2012 CBRE Limited 2012 asset Miller © all for 5200 Broadway at SF Place West negative Avenue 354 mand continues to grow to grow continues mand , Delf th modest decreases in vacancy vacancy in decreases modest Class B and C markets posted posted C markets and B Class 6 8 de was lass AAA and A markets this markets A and AAAlass 1333 teady. As well, a number of number a well, As teady. by by 2011. The Broadway corridor only corridor Broadway The 2011. he ng previous quarters, the fourth the quarters, previous ng ill continue to be offered by by offeredto be continue ill ter trend in decreasing vacancy vacancy decreasing in trend ter ew space came available at 3011 available came space ew territory negative to slightly moved at e C e d s d ease to 4.6%, with the Class A Class the with 4.6%, to ease in bsorption. While the Class AAA and A and AAA Class the While bsorption. ori Properties (5,206 SF).Construction (5,206 Properties West s w s f n 23.6% and 39.5%, respectively. The respectively. 39.5%, and 23.6% 13200 SF o years, the Class AAA and A markets markets A and AAA Class the years, o ket leased ncr e a e . to at 990 Ltd absorption 1385 , SF at 10 Virtualink YTD 016 , . SF 8 SF (Canada) 500 , renewed 5 478 . , leased 7 . Ltd Inc Central development officially break ground after significant significant after ground break officially development Central Solutions leased negative Canada Onni’s Secure Canada Sensei to of . S 4 OCE G Intel Lean 2011 • • of • • historical highs in vacancy over the last twlast the over vacancy in highs historical - absorption end total the at YTD Way Way bringing absorption Way (57,073 SF) and the occupancy of PPH ARC Environmental at 13775 Commerce Parkway Parkway Commerce at 13775 EnvironmentalARC PPH of occupancy theSF)and Way (57,073 Alliance’s Containers project and and project Containers Alliance’s Way Wireless Wireless Rize positive Broadway 13911 of / absorption, Broadway Elmbridge 13911 Shellbridge SF West at West 13811 492 SF 6651 , negative at 1333 at 15 1985 of 000 SF at , SF at SF 18 SF 033 SF , posted 950 , 917 , 495 , 4 16 103 475 , 12 Engineering at 10851at Engineering which renewed 11 . Inc quality assets. The overall vacancy rate decreased 140 bps from last quarter to 21.4%, marking a three quar threea marking to 21.4%, quarter from last bps 140 decreased rate vacancy overall The assets. quality renewed renewed - witnessed market Franzen renewed B renewed Inc Motion Solutions Group quarter Wireless Class in the Back Sierra Clevest Genivar D+H fourth leasing activity. activity. leasing - • • • Significant Transactions within the Class AAA and A market. Despite recent preference for renewals among larger tenants in the market, major incentive major market, thein tenants larger among renewals for preference recent Despite market. A and AAA Class the within market. thein movement some in result may and landlords with 2,269 SF of negative absorption and the Class C market posted 32,075 SF of negative absorption this quarter. this absorption of negative SF 32,075 posted C market Class the and absorption of negative SF 2,269 with tenantas fundamentals market in improvements modest by definedbe to continue will market office Richmond the ahead, Looking (12,804 SF) brought quarterly absorption figures to positive territory at 46,832 SF, with YTD figures at 32,290 SF of positiv SF of at 32,290 YTD figures withSF, 46,832at territory to positive figures absorption quarterly SF) brought (12,804 mar B Class the quarter, fourththe in respectively absorption of positive SF 17,824 and SF 63,352 with gains positive posted 3031 Viking Way. Viking 3031 of occupancy The both had vacancy drop to 16.8% and 22.9% respectively in the fourth quarter of 2011. Countering the positive growth within th within growth positive the Countering of 2011. quarter fourththe in respectively 22.9% and to 16.8% drop vacancy had both up rate vacancy the bringing quarter this vacancies several realized which C markets, B and Class thein losses were quarter o SF 28,143 after quarter this 39.5%to quarterlast 25.3% from increase substantial a witnessed particular in C market Class primarily within top within primarily near posting After of 2011. quarter first the during of 23.6% high a reaching after RICHMOND evidenced as of 2011, quarter fourththe over fundamentals leasing in improvement marginal posted market office Richmond The • Significant Transactions • activity is also expected to ramp up as the first phase of phase first the up as ramp to expected also is activity pre Looking ahead, market fundamentals are expected to improve in 2012 following a relatively stagnant period of market activity activity market of period stagnant relatively a following 2012in to improve expected are fundamentals market ahead, Looking deman keep and fluctuationsmarket major from it insulate should which market, theSF on 10,000 above availabilities five has and SF) (5,500 Sensei Lean SF), (10,430 Canada Services including 2012,in space occupy to expected are tenants The except small decreases in vacancy, down 30 bps and 50 bps to 5.6% and 7.7%, respectively. respectively. 7.7%, and to 5.6% bps 50 bps and 30 down vacancy, in decreases small The vacancy rate for the Broadway Corridor increased to 5.8% over the fourth quarter of 2011, up from 5.7% last quarter. Mirr quarter. last 5.7% from up 2011, of quarter fourththe over 5.8% to increased Corridor Broadway thefor rate vacancy The i bps 10 a small posted rate vacancy AAA Class The activity. market robust, not albeit stable, by defined was of 2011 quarter T Mall. Sciences Health at 2389 vacancy SF 12,286 to newpart a in due to 5.2%, vacancy in rise bps 100a experiencing market BROADWAY CORRIDOR BROADWAY MarketView Metro Vancouver Office Fourth Quarter 2011 3 Page Page Kennedy, 9,500 SF 9,500 Swissreal Avigilon’s year high in high year - 2012 CBRE Limited 2012 © Bentall Xstrata’s leasing commitments commitments leasing - and Credit Suisse/ Credit and ced this quarter, with nearly all all nearly with quarter, this ced ations in vacancy are expected as theas expected are vacancy in ations pre confirming lan Manulife mber of projects moving from the from moving projects of mber at 2.4% and 3.4% respectively, while respectively, 3.4% and at 2.4% upply to the market. market. to the upply gs gs ctu ly conditions. The overall vacancy posted posted vacancy overall The conditions. ly rket witnessed a minimal 7,975 SF of SF 7,975 minimal a witnessed rket space, most of which was seen among among seen was ofmost which space, 3.1%. The Class AAA market posted a a posted market AAA Class The 3.1%. , are countered by a number of major major of number a by countered are , office market reach a threea reach market office es sectors, emerging demand was also also was demand emerging sectors, es nu ccupancies this quarter include quarter this ccupancies her hand, experienced 16,681 SF of SF 16,681 experienced hand, her d remains positive, the latter half of 2012 half latter the positive, remains d w s w at at er ma ns) vic ive upp ot 2012 will see some interesting market interestingsome see will 2012 e o e ren /Reliance, Pattison 12,874 SF occupancy at 401 West Georgia Street, as well as as well as Street, Georgia West 401 at occupancy SF 12,874 24 months, the third and fourth quarter of quarter fourth and third the months, 24 Amec’s - 000 , 400 , 9 $ Street for Street SF) Street Street & Hues 22,218 SF and and SF 22,218 & Hues Georgia 780 , Georgia 19 Street West ( Street Pender Rythm Thurlow West 885 West Street 745 at Burrard 700 Georgia at at SF are well in their construction plans, while several other groups, including including groups, other several while plans, construction theirin well are 555 1095 SF Beatty SF West at at 309 , 000 SF , SF 873 330 13 , 401 Westbank 62 at 100 714 343 , , 9 SF 10 renewed purchased leased 784 - , renewed LLP leased Ltd out” and space gets shuffled within the market. The Class A and Class B posted substantial decreases in vacancy vacancy in decreases substantial posted B Class and A Class The market. the within shuffled gets space out” and . 12 pre leased - . C . Inc Group Kalef B leased Lavalin Lavalin Gold - - Bank 896584 SNC TD Koffman Amec SNC New Significant Transactions • • • • • • • DOWNTOWN VANCOUVER DOWNTOWN Vancouv Downtown thesaw of 2011 quarter fourth the activity, leasing positive of quarter consecutive seventha on Continuing ser business and engineering legal, resource, natural including of areas a variety from demand by Supported levels. occupancy ba was market downtown the across activity Deal industries. technology/communication and government education, from witnessed absorption. positive in gains witnessing classes s limited among accordingly rise rentsand decline vacancies as conditions market favourable to experience continue Landlords of 2008 quarter fourth the since vacancy downtown lowest the representing to 3.4%, decline quarterly (bps) points basis 70 a flu SF),small (60,011market on the space of vacant amount limited extremelyto the due but to 1.4%, increase bps 10 minimal “bottoms market to 6.8%. decline quarterly bps 40 a experienced C market Class the of posit SF 450,273was quarter fourthof the end at themarket office downtown for the figures (YTD) absorption to date Year AAA Class The respectively. absorption positive SF of 51,092and SF 102,116 with quarter this sectors B Class and A Class the on the C space Class conditions. supply limited extremely under expected is previously, mentionedas but absorption, negative Notabl class. building this in absorption quarterly average of SF 12,859the with consistent beenhas and absorption positive Street,Beatty at 858 expansion sublease 28,572 Street. Pender West at 700 sublease buildin several With 2004. since witnessed not has market downtown thethat cycle development a begin will months 24 next The of ne delivery the awaiting eagerly are 2016and 2015 2014,in expiries lease with tenantsmany start dates, construction and TELUS/ and Properties Oxford the on depending moderately increase to forecasted are rates Vacancy well. as plans development their up to ramp expected are to 2016. 2014from SF million 1.68 total over could which stage to confirmed proposed 12 next over volatility littleto show expected are conditions market overall While locatio (multiple HSBC including market, downtown the in tenantsof number a of consolidations and vacancies theas activity, t long term the While Street.Hamilton at1132 Technicolor and Street Granville at 200 Critical Vision including occupancies fluctuations.term short experience accordingly may

MarketView Metro Vancouver Office Fourth Quarter 2011 6 Page Page 2012 CBRE Limited 2012 © value (LTV) rates value - to - loan % % s C market posted theposted market C s 84 g on the transaction transaction theon g . 77 nted by robust construction robust by nted year money and selective 10, selective and money year . 3 rate down 60 bps 6.6%. bps to 60 down rate las - al office occupiers to purchase purchase to occupiers officeal 2 osted a 290 bps increase to increase bps 290a osted din - o 10.3%. Countering the Countering o 10.3%. onary note to both lenders and and lendersto both note onary cy cy - product is coming to the market to the coming is product es. The overall vacancy rate fell rate vacancy overall The es. ime favoured t p t loc sses within the Class A and C and A Class the within sses % territory at 3,201 SF. at 3,201 territory e t e a slight 40 bps quarterly increase to increase quarterly bps 40 slight a learly, Canadian real estate real Canadian learly, acancy in Carnarvon Centre (737 Centre Carnarvon in acancy uti g market, as occupancy levels have have levels occupancy as market, g % o five lo ass ore 25 . C . second mortgages, etc. Interest rates rates Interestetc. mortgages, second n v n ng . ive sin e t e 22 h as Grandview Business Centre and and Centre Business Grandview as h . 3 2 : : and suc Rate Rate USD Mortgage Mortgage 9761 . $ : Dollar Commercial Commercial Year - Year - 5 10 Canadian • • • Street led to the increase in the Class B vacancy rate, with 25,627 SF becoming available over the fourth quarter. Overall, Overall, quarter. fourth the over available SF becoming 25,627 with rate, vacancy B Class thein increase to the led Street nd % % 15 . 43 . 2 % 1 : : 00 . 3 Bond : Bond Rate Canada Canada year money. year - Prime Year - Year - 5 10 Bank • • Quick Stats Quick • Private money is readily available for most requests: condo, custom home, infill, student housing, self storage, land, first land, storage, self housing, student infill, home, custom condo, requests: for most available readily is money Private transaction. theof profile risk theon depending to 15.0%6.0% of range the incost will sources capital private from Cap rates continue to hover around 2007 levels, especially for quality assets, as demand for product has outweighed supply. M supply. outweighed has product for demand as assets, for quality especially levels, 2007 around to hover continue rates Cap market. of the featurea still is bidding aggressive and strong be to continues appetite buyer but 20 and 25 and 20 Despite the extreme volatility in the bond market, spreads have only moved up modestly, hovering around 1.75% to 2.50%, depen to 2.50%, 1.75% around hovering modestly, up moved only have spreads market, bond thein volatility extremethe Despite of on abundance an is There floor. a seeking lenders some with etc.) terms, loan covenants, sponsorship, LTV, type, (property Notwithstanding the above, the Canadian mortgage market remains very active with an appetite for most product types, with the with types, product most for appetite an with active very remains market mortgage Canadian theabove, the Notwithstanding to 75.0%. up available debt with range 60.0% to 55.0% the in The domestic mortgage market can be characterized as active but participants are carefully watching trends in foreign markets foreign in trends watching carefully are participants but active as characterized be can market mortgage domestic The a ca adds Europe in events surrounds that uncertaintythe but group peer economic our amongst strongest the are fundamentals borrowers. CAPITAL MARKETS CAPITAL Carnarvon Street), where 28,797 SF was removed from the market. Positive market activity in New Westminster was further compl furtherwas Westminster New in activity market Positive market. the from removed SF was 28,797 where Street), Carnarvon developed. be to continue Square Merchant and District Brewery theas such of projects number where activity The New Westminster office market showed some positive movement of the fourth quarter, with vacancy declining in all asset cl asset all in declining vacancy with quarter, fourthof the movement positive some showed market office Westminster New The C The respectively. 14.0%, and to 14.9% bps 460 and bps 170 fall vacancy had market B and A Class the while to 11.9%, bps 490 i drop to major a attributed mostly was C market Class thein decline The to 5.2%. bps 790 vacancy, drop in quarterly largest increase in vacancy was the Class B market, which saw a number of deals in the 1,000 SF to 2,000 SF range help move the vacan the move help SF range SF2,000 to 1,000 the in of deals number a saw which market, B Class thewas vacancy in increase posit into slightly YTD absorption brought which quarter, the over absorption of negative SF 4,366posted market the Overall, The vacancy rate in the North Shore office market increased 20 bps over the fourth quarter to 6.2% lead primarily by marginal by primarily lead 6.2% to quarter fourththe over bps 20 increased market office North Shore the in rate vacancy The increas bps 90 a witnessed C market Class the while to 4.3%, vacancy in increase bps 80 an posted market A Class The markets. Panorama Place seeing strong sales activity. Accordingly, the desire to own space has had a negative impact on the office lea office theon impact negative a had has space to own desire the Accordingly, activity. sales strong seeing Place Panorama market. to the introduced were projects office new time same at the declined 15.0%. A new availability at 7455 132 7455 at availability newA 15.0%. from demand Ongoing SF. 40,229 positive to absorption YTD bringing quarter, this absorption of negative SF 10,835 was there projects with Surrey, in developments officestrata build to developers several spurred has property office of lease instead Market conditions remained relatively unchanged over the fourth quarter of 2011 in Surrey with the overall vacancy rate posti rate vacancy overall the with Surrey in 2011of quarter fourth the over unchanged relatively remained conditions Market B marke Class the while respectively, 2.7%, and to 21.9% declines quarterly posted both rate C vacancy and A Class The 17.8%. SURREY, NORTH SHORE & NEW WESTMINSTER NEW & SHORE NORTH SURREY, MarketView Metro Vancouver Office Fourth Quarter 2011 7 Page Page , of an in % to the five core best the the 9 . across in of strong vacancy 12 start seventh the coupled 2012 CBRE Limited 2012 result over quarter improved of to © best and the growth however, show vacancy downtown ; representing third supply projects much should the , to % decline grow % the the 0 . 9 indicator new and new . absorption to marked months in 13 balanced region 12 as (bps) SF an since perform 24 by to - the continued to Limited 383 12 quarter below , led rate positive in point fell things . Vacancy continued % . of 860 core next 0 also . years basis has space 8 fourth absorption, SF Purchaser Dundee REIT 0896584 B.C. Ltd. 0919763 B.C. Ltd. (40% Int.) 0919952 B.C. Ltd. (49% Int.) 0911380 B.C. Ltd. (11% Int.) Dales Properties Ltd. Turf B.C. Ltd. Holdings 1623 Ltd. change the dropped vacancy over to rate 70 continued two markets the to a will office 285 fell over , of last demand downtown lowest positive for market well, 294 cycle rate totals vacancy of the Burnaby the the posting . As the . , ($/SF) numbers . number YTD % over demand low a 4 suburban 2014 time . vacancy While recorded $251 $205 $174 $517 3 levels quarter Price $413 $356 in suburban in . markets, construction to first . bringing The activity absorption quarter . - 2010 the fallen region regional continued market delivered The the performance, has declined 2008 eight suburban and quarters The quarter, from consecutive market with strong upcoming be Size (SF) Size 94,983 22,781 41,522 21,675 7,162 3,190 4Q11 4Q11 $8,500,000 $3,775,000 $2,550,000 Price $23,800,000 $9,400,000 $1,650,000 3Q11 3Q11 2Q11 2Q11 Aveune Avenue nd Urban th 1Q11 1Q11 873 873 Beatty Street Address Granville 8100 Avenue North4300 Fraser Way King George9656 Boulevard 128 West 8 West1623 2 Suburban 4Q10 4Q10 Transactions 0 Sale Sale 50 350 300 250 200 150 100

8% 6% 4% 2% 0% Vacancy

Net Absorption Net 20% 18% 16% 14% 12% 10% Richmond Richmond Vancouver Burnaby Surrey Vancouver SF (000s) SF Vancouver Market Top Top

4.3 6.6 6.2 2.7 5.2 1.4 2.4 3.4 6.8 3.4 4.6 5.2 5.6 7.7 5.8 8.0

MarketView Metro Vancouver Office

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