Metro Office Market Report

FIRST QUARTER 2015

Accelerating success. office market summary metro vancouver

The Metro Vancouver market began 2015 cautiously as it anticipates the release of more than 2.1 million square feet of office space this year. As the market receives an abundance of high-quality space, tenants are adapting to their new environment by taking advantage of increasingly high inducements to consider previously unattainable spaces.

Market Overview 2014 Q4 2015 Q1 TREND Vacancy increased by 0.6 percent as Metro Vancouver’s inventory begins its expansion with 262,915 square feet of office space Office Inventory* (SF) 54,661,599 54,924,514 completed in the first quarter of 2015. With some tenants not yet Net Absorption (SF) 351,864 (91,633) occupying their larger spaces in the new supply and large spaces becoming vacant in the suburbs, absorption was negative overall at Vacancy Rate 9.0% 9.6% negative 91,633 square feet. Broadway Corridor kept the lowest Average Asking Net Rent** $22.57 $22.28 vacancy across all submarkets at 3.3 percent, resulting from little leasing activity and few spaces becoming available. Richmond saw Average Additional Rent $13.56 $13.85 the largest decrease in vacancy, dropping from 17.7 percent to 15.6 *There are 762 office buildings surveyed in Metro Vancouver percent due to its ability to meet requirements for large spaces, ** Average Asking Net Rent is calculated using a weighted average particularly for technology and digital media businesses and a range of manufacturing businesses. CUrrent TENant Requirements Anticipating the release of more than 1.3 million square feet of Class While the number of tenants seeking space has decreased from 88 A and Class AAA office space downtown next quarter, including to 82 this quarter, demand remains strong, increasing by 465,500 TELUS Garden and 725 Granville, lower class buildings are seeing square feet. More tenants are seeking larger spaces with five changes as their amenities are upgraded to remain competitive. In tenants requiring space between 100,000 square feet to 300,000 addition, landlords across all submarkets are offering progressively square feet. Although technology and digital media businesses still creative inducements such as cash allowances and bonus square have the highest square feet of requirements, consumer goods saw feet as they are pressured to reduce net effective rates to attract the biggest increase in businesses requiring space, moving from tenants. As a larger range of spaces become available in the market 14.87 percent to 22.44 percent of total demand. from the business parks of the suburbs to the new construction and upgraded buildings downtown, tenants can now explore a range of options to maximize the efficiency of their office’s size and location. Tenant Requirements March 2015

The vivacity of the sublease market further extends tenants’ options 2,321,500 Square Feet by providing temporary spaces for businesses exploring the market, 23.95% as well as an option for those looking to occupy new space before Technology & Digital Media 30.99% the end of their lease. With overall sublease availability decreasing Consumer Goods from 13.4 percent to 11.7 percent of total available space, the market Financial Services 6.33% saw an uptake in demand that indicates the value of subleases in Professional Services 7.28% tenants’ real estate strategies. Spaces available for sublease range Insurance 22.44% from 500 square feet to multiple floors totaling up to 89,000 square 9.00% Other* feet, offering a variety of options throughout all building classes. * Other includes entertainment & leisure, logistics, education, government, accounting, legal services, health services, energy & natural resources and financial services. Historical Performance and forecast 12.0% 1,500,000 INVESTMENT MARKET 10.0% 1,000,000 Despite slow transaction activity this quarter, the Metro Vancouver 500,000 8.0% Investment market remains an attractive choice for investors. Off- - market transactions continue to compress capitalization rates with 6.0% (500,000) many owners receiving unsolicited offers of purchase. As 4.0% capitalization rates decrease Downtown and in the Broadway (1,000,000) Corridor, permit application for office product is increasing. A 2.0% (1,500,000) second wave of office developments is in planning with projects

0.0% (2,000,000) such as Jim Pattison Developments and Reliance Properties’ Burrard Place and BlueSky Properties’ Broadway and Oak looking 2011 Q1 2011 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 2013 Q3 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2 2012 Q2 to start construction at the end of this year.

Net Absorption (SF) New Supply (SF) Vacancy Rate (%) table of contents

market summaries Vancouver – Downtown 1 Vancouver – Broadway Corridor 2 North Shore 3 Burnaby 4 New Westminster 5 Richmond 6 Surrey 7 Langley 8

glossary 9

forecast assumptions 11 1A

OFFICE MARKET SUMMARY S

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S D t r a n le S y t Vancouver – downtown a Beaver P n a l Lake r e k y D P r

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a i u n s e e Stanley w R a d Park y Avison W The Downtown market is beginning to see effects from the 1.7 million square feet ofay office space entering the

1A market in 2015. Tenant activity is cautious as companies explore the most 99efficient use ofa rk Dspacer for their business y P nle ta Dr S oon St ag an L le N y Pa needs, with subleasing an effective tool for expanding leasingrk options. Vacancy is expected to continue to increase

Dr Lost Lagoon this year as the market adjusts to the new supply. Devonian Coal Harbour Harbour Park W. Georgia St

Alberni St Lagoon Dr trends and highlights Park Ln Haro St Beach Ave Chilco St Harbour Pendrell St Green Park 4 W. Commissioner St ◊ Oxford Properties’ MNP Tower at 1021 West Hastings Street was the Gilford St Comox St Bidwell St Pender St Denman St first tower to complete in 2015, adding 263,000 square feet of office Pendrell St W. Georgia St Canada Pl Alberni St Nicola St B Melville St space to the market. It is currently 93 percent leased. Bidwell St English Bay Cardero St Broughton St 99 Waterfront Beach Ave Beach Jervis St D Hastings St E. Commissioner Cordova St Nelson St Barclay St Bute St Burrard Pender St ◊ Manulife’s 980 Howe Street, delivering 240,000 square feet of office Haro St 1A Bidwell St Dunsmuir St Pendrell St Thurlow St Water St space in the second quarter of 2015, is now 60 percent leased with Cardero St Comox St W. Georgia St Powell St

Columbia St Nicola St St Abbott Burrard St Seymour St E Granville3 CarrallSt Robson St Davie St ACL Software securing four floors totalling 70,000 square feet this Broughton St C A Burnaby St 1 5City Centre Homer St quarter. Howe St Pender St Harwood St St. H Bute St Paul’s Granville St Richards St Stadium/ Keefer St Smithe St Quebec St DunsmuirChinatown Viad Sunset Hornby St Cambie St Beach Beach Ave Hamilton St Thurlow St Nelson St Paci‡c Blvd Burrard St 2 Rogers Expo Blvd Davie St 2014 Q4 2015 Q1 TREND Helmcken St Beatty St Arena Blvd Georgia Viad BC Place Drake St Stadium Hornby St Mainland St Expo

Vanier Hamilton St Office Inventory* (SF) 24,474,251 24,737,166 Park May & Lorne Brown Park Seymour St Paci‡c Blvd Richards St Yaletown/ Roundhouse Science Homer St World Net Absorption (SF) 10,101 (63,121) Paci‡c Blvd Point Grey Rd Kitsalano Beach St Quebec George Wainborn David Lam Granville Granville Bridge Park Park

TrafalgarSt Island

Balsam St Balsam Maple St Johnston Street Vacancy Rate 6.0% 7.2% Yew St Olympic Village

99 1 Ave Notable1 Ave Lease Notable Sale New Supply 1 Ave

Stephens St Stephens Cartwright Street LarchSt Vine St 2 Ave 2 Ave Average Asking Net Rent** $27.13 $27.31 Cypress St 2 Ave Old Bridge Street 3 Ave 3 Ave 1 Ave 3 Ave Average Additional Rent $17.14 $17.47 notable lease transactions *There are 224 office buildings surveyed in the Downtown region ** Average Asking Net Rent is calculated using a weighted average APPROX. TENANT TYPE ADDRESS Size (SF) Historical Performance and forecast 1. ACL Services Ltd. Headlease 980 Howe Street 70,000 10.0% 800,000 9.0% 600,000 8.0% 2. Lululemon Athletica Headlease 1380 Burrard Street 40,000 7.0% 400,000 401 West Georgia 6.0% 3. Unbounce Headlease 25,000 5.0% 200,000 Street 4.0% - 3.0% notable sale transactions 2.0% (200,000) APPROX. purchaser price ADDRESS 1.0% Size (SF) 0.0% (400,000) Westbank Projects 4. $47,000,000 1550 Alberni Street 100,000 Corp. 2011 Q1 2011 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 2013 Q3 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2 2012 Q2

Net Absorption (SF) New Supply (SF) Vacancy Rate (%) 5. Avigilon Corporation $42,000,000 555 Robson Street 135,000

Upcoming new supply address class Floors total office area (SF) developer A. TELUS Garden - 510 W. Georgia Street AAA 22 450,000 TELUS / Westbank B. 745 Thurlow Street AAA 20 365,000 bcIMC / Bentall Kennedy C. Manulife Building - 980 Howe Street AAA 15 250,000 Manulife D. The Exchange - 475 Howe Street AAA 30 400,000 Credit Suisse E. 725 Granville Street A 4 280,000 Cadillac Fairview

FIRST QUARTER 2015 OFFICE MARKET SUMMARY Buntzen Lake Capilano Vancouver - Broadway Corridor Lake West Vancouver r m D r d

h R A g u no n o r a a

r l i i o D

p d b s a North Broadway Corridor continues to have the lowest vacancy rate in Metro Vancouver. Withh only four buildingsmar Rd with n t n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver ve ls Delbrook BC RAIL Mathers Ave d Pitt Lake Highway R E 29th St ur space available of more than 10,000 square feet, large tenants looking to expand orInglewood enter Ave the market are exploring o 21st St 11th St 11th m y Fulton Ave 1 Hyannis Dr e

S e v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Rd new development options and expanding their search beyond the traditional Broadway Corridor core. Vacancy Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 rates will remain low for 2015 as no new supply will complete before the end of the year. p L Harbourside Pl s l Rd East Rd n an o a E 3rd St i 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

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r k A trends and highlights e

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o Ioco Rd e r r

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◊ English Bay r ig Bluesky Properties and Bosa Properties’ development at the i h McGill St d w

ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n corner of Broadway and Oak is approved, with demolition Ma Vancouver s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d 1 Port Moody g Woodland Pipeline Rd Coast Meridian Rd Parker St University WCE u Stave Lake Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd beginning in late 2015. Construction is expected to complete in Roundhouse Falcon S Poin Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g W 4th Ave Olympic Village l

Wesbrook Mall G Ave Gilmore 3 1st Ave Willingdon Ave a r r Prairie Ave Holdom St Gerald Ave Gerald 2 D e Sperling St d VCC/Clark C McNeil Rd B at North i W mid to late 2017, adding 90,000 square feet to the market. University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 St Renfrew Holdom Clarke Rd 4 Broadway/ Commercial Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver Sperling/ Coquitlam

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

◊ Kingsway Ave

Five tenants are actively seeking space with a total of 512,000 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 a o i Sprott St Linton St 7 n Nanaimo St

M

Edward St Rupert M square feet of requirements. This is a shift from Broadway e Town Centre Rd Gatensbury Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d

B Rd Neaves 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 Corridor’s tradition of attracting smaller tenants, as larger tenants v

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 hw P Oakridge/41st Ave ay Brunette Ave look to enter and expand in the market. 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

Fraser St Fraser Knight St Canada Wy

Main St St Tyne Sapperton 124th Ave Victoria Dr 2014 Q4 2015 Q1 TREND 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 A t r 227th St 224th St 216th St St Laity e

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

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

t n e River Dewdney Trunk Rd 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 li Nelson Ave id SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple Office Inventory* (SF) 6,470,981 6,470,981 Marine Dr g E H Marine Dr 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 u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k 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 Net Absorption (SF) 201,186 314 a rid Templeton Grosvenor Rd L River d g AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie 91A Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave 104th Ave t r 99 North Surrey S Vacancy Rate 3.3% 3.3% a Central er Farms Rd Farms iv i R Rd t ll K e O Aberdeen Cambie Rd Wilson St e b 256th St y Bridge 102nd Ave ys p

208th St t m Notablef Lease Notable W Sale New Supply 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 148th St 160th St e Average Asking Net Rent** $21.62 $21.57 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 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 S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av 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 Average Additional Rent $15.09 $15.03 Cli x a Granville Ave Hatzic D y F 88th Ave 88th Ave H notable lease transactions er W r 1A w No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t Richmond s 88th Ave Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

B y 7 Wolfe Rd Blundell Rd Rd 216th St Topham Glover Rd r W *There are 127 office buildings surveyed in the Broadway Corridor region i l 84th Ave d 84th Ave e 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd APPROX. e o Mission St Cedar N Rd lliwack Mtn Rd Rd Ford ** Average Asking Net Rent is calculated using a weighted average 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. King George Highway Annacis N R

TENANT TYPE ADDRESS Paci”c 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 e Rd Annis Size (SF) r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run 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 7 t Wy k t w

g C.P.R. a 208th St 216th St 192nd St 200th St Historical Performance and forecast 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 1. Smart Design Group Headlease 1150 Station Street 6,600 Progress Wy 72nd Ave 240th St r 7.0% 300,000 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 George Massey Tunnel BYPASS R lli

d w 6.0% 200,000 ac R

Trans Canada Highway k i

17 RAILWAY W Yale Rd v

1788 West 5th e r

Kitson Pkwy Dyke Rd 64th Ave R 2. Nurse Next Door Headlease 6,000 Lickman Rd

SOUTHERN RAILWAY s d

Satchell St Satchell a Upper Sum Mou 62B St 62B Glover Rd nta Avenue 64th Ave n

B.N.R. Page Rd i

5.0% 100,000 R

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 4.0% - 56th Ave Promontory Rd 56th Ave 11 Watson Rd W Douglas Cr d B.C. RAIL 208th St LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 56th Ave

e 72nd St AIRPORT Hopedale Rd iv Rd Sumas Prairie R 53rd Ave Keith Wilson Rd 3.0% (100,000) 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 2.0% (200,000) de Townshipline Rd unta C SOUTHERN RAILWAY 15 Cr 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 1.0% (300,000) t Yarrow Central Rd

notable sale transactions r 17 328th St A 64th St 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 0.0% (400,000) Paci”c Highway 34B Ave t APPROX. n North Parallel C.P.R.

Abbotsford R South Parallel

d PURCHASER price ADDRESS Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy 32nd Ave Rd Boundary Size (SF) R 32nd Ave rn t ybu Lake 53rd St 53rd n Cla d e 32nd Ave R Atkinson Rd No. 5 Rd c Su Old n Cres ma t s M 2011 Q1 2011 28th Ave W s

2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 St Fer a 2013 Q3 27B Ave

2015 Q3 w 2013 Q4 2014 Q3

2012 Q3 2013 Q2 g 2015 Q4

2015 Q2 a 2014 Q4 2012 Q4 2014 Q2

2012 Q2 160th St Rd Clearbrook 168th St 184th St us m ie 28th Ave 28th Ave on y u v W S Austeville Properties y 99 y er a South Fraser Way w B o 3. $16,125,000 1867 West Broadway 29,700 1A L 52nd St 56th St 188th St Old Yale Net Absorption (SF) New Supply (SF) Vacancy Rate (%) Ltd. 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave

Ross Rd Ross Trans Canada Hwy 17 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

Upcoming new supply B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT

a McCallum Rd r Whatcom Rd Whatcom Cole Rd Rd McDermott Marion Rd Rd Powerhouse y 264th St B address class Floors total office area (SF) developer ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

R

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

TERMINAL 172nd St 176th St Marine Gateway - 450 SW Marine Drive A 1st Ave A. 14 249,817 TSAWWASSENPCI Group CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA B. Broadway and Oak - 988 W. Broadway A 8 82,000 BlueSky Properties U.S.A. U.S.A. U.S.A. C. Renfrew Business Centre A 6 160,000 Blackwood Partners D. 7 East 6th Avenue A 2 12,000 Rendition Development

2 OFFICE MARKET SUMMARY North Shore

The North Shore market remains stable with availability decreasing by 0.2 percent to 6.3 percent. While Lower

Lonsdale continues to attract tenants with its proximity to transit, there has been an uptake in activity in business Buntzen Lake parks. Local businesses, primarily professional services and health care,Capilano are the main drivers of the market resulting in vacancy expected to stay within the 5.0 percent to 6.0 percent rangeLake for 2015.

Trends and highlights West Vancouver ◊ Larger tenant activity has primarily been from the non-profit r m D r d

h R A g sector such as the North Shore Multicultural Society currently u no n o r a a

r l i i o D

p d b s a North mar Rd n th n Ave e I seeking more than 15,000 square feet. u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver ve ls Delbrook ◊ Business park activity increased this quarter withBC RAIL the CapilanoMathers Ave d Pitt Lake Highway R E 29th St ur Inglewood Ave o 21st St Business Park leasing 19,000 square feet to a variety of existing St 11th m y Fulton Ave 1 Hyannis Dr e

S e

v Lynn Valley Rd t

15th St A tenants in the market. E Riverside Dr M Taylor Wy Taylor

A l Ma l rin e e F Rd Dr 1&2 y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 3 i G s ith 2014 Q4 2015 Q1 TREND Harbourside Pl p L s l Rd East Rd n an o a E 3rd St i de Rd Cove Deep L Brooksbank Ave ollarton Rd D Dollarton Hwy Main St d Office Inventory* (SF) 2,406,690 2,406,690 E Esplanade Ir l o OW Riverside Dr Port Moody 99 n Rd

W il r

o p

r Burrard Inlet k A Net Absorption (SF) (72,590) 11,968 e r s Dr a M Panoram

e

m H

o Ioco Rd e r r

Vacancy Rate 5.9% 5.5% i it

a B

a a

l r

n g

B et C.P.R. H e

English Bay r ig i h McGill St d w

Notable Lease Notable Sale New Supply ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u d t Dundas St n s Average Asking Net Rent** $18.68 $19.18 Paci”c St d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n Ma Vancouver s E Hastings Street e e W City Centre B

n

N D notable leaseStadium/Chinatown transactionS l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd Average Additional Rent $10.49 $10.90 Parker St University WCE u Stave Lake Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd Roundhouse Falcon S Poin APPROX. Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St rey Cornwall St G Central Cedar Dr *There are 63 office buildings surveyed in the North Shore region Rd TENANT TYPE ADDRESS a

Clark Dr g W 4th Ave Olympic Village l

Wesbrook Mall G Ave Gilmore r 1st Ave SizeWillingdon Ave (SF) ar Prairie Ave Holdom St Gerald Ave Gerald **Average Asking Net Rent is calculated using a weighted average e Sperling St d McNeil Rd at North VCC/Clark i W University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 British Columbia St Renfrew Holdom Clarke Rd 4 Broadway/ Commercial Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W1. 12thYWCA Ave Headlease 980 West 1st Street 9,000 Lougheed Highway Port St Historical Performance and forecast E 12th Ave Renfrew Rupert W 16th Ave Vancouver Sperling/ Coquitlam

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

Kingsway Ave

Lake City Way W

Canada Wy n

Kingsway r 10.0% S 300,000 Production Way/ i

e W a

University t Imtech Marine n i Ridge M n

r Lougheed Highway

a u 9.0% r King2. Edward Ave King Headlease 949 West 3rd Ave 7,500 Lougheed a o i Sprott St Linton St 7 n 250,000 Nanaimo St

M

Edward St Rupert M Canada Inc. Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e 8.0% u Rd Harris Arbutus St l d 200,000 B Rd Neaves 29th Ave R Crown St Crown St Dunbar T

Blenheim St Harrison Hot Springs Rd Springs Hot Harrison 7.0% Deer Lake Pkwy ra r St e W 33rd Ave E 33rd Ave ns Coquitlam Fern Cr v

Ca i n R

Broadway St Broadway 7

150,000 ad Dewdney Trunk Rd McCallum Rd

Joyce a t 132nd Ave

6.0% t

Hig 1 i 7 9 hw P Oakridge/41st Ave ay Brunette Ave 5.0% 100,000 W 41st Ave E 41st Ave Grange St Burnaby Braid Shaughnessy North Rd W Boulevard United Blvd 128th Ave 128th Ave Earles St Pitt 4.0% Patterson Hartley Rd 7 50,000 notable sale transactionS Rd Cameron W 49th Ave Langara/ 7 6th St Mary Hill Bypass Meadows 3.0% 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 APPROX. P Pitt d Imperial St o R

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

2.0% Rd Spratt

Royal Rd Lake Stave W 57th Ave Rd Woolridge 256th St t r 227th St

purchaser price ADDRESS 224th St 216th St St Laity e

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

Cambie St Kingswa s (50,000) Size (SF) y a

C.P.R. Harrison Bay

264th St t e 1.0% n River Dewdney Trunk Rd 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 0.0% (100,000) Nelson Ave i li d Marine Dr SE Marine Dr l 100 EastKerr St 1st Street Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr e Meadows d G.H. Macmillan 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 3. $6,400,000 130 East 1st Street 18,875 P Fraser Wy Haney y Gilley Ave at B e Land Corporation u yp

112th Ave 207th St gO Kent Ave S Marine Wy ardso llo a 2011 Q1 2011 id n Queens Ave Columbia s 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 a 120 Lonsdale Avenue w s 2013 Q3 W 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2

2012 Q2 r k 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 Net Absorption (SF) New Supply (SF) Vacancy Rate (%) Templeton a rid Grosvenor Rd L River d g AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie 91A Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave 104th Ave t r 99 North Surrey S Upcoming new supply a Central er Farms Rd Farms iv i 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 Ca address class Floors r total office area (SF) developer n

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 148th St 160th St e A. 1308 Lonsdale Avenue A 4 80,000 Onni Group of Companies 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 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 S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av 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 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 Richmond s 88th Ave 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 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. King George Highway Annacis N R Paci”c 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 e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run 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 7 t Wy k t 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 FIRST QUARTER 2015 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 Banford Rd Banford HWY 10 Rd Prest 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 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 Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. Page Rd i

R

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 LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 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 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 de Townshipline Rd unta C SOUTHERN RAILWAY 15 Cr 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 17

328th St A 64th St 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 Paci”c 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 17 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

a McCallum Rd 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

R

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. OFFICE MARKET SUMMARY Buntzen Lake Capilano Burnaby Lake

West Vancouver r m D r d

h R A g u no n o r a a

r l Burnaby’s deal velocity remains languid despite an i uptake in touring activity. Buildings off transiti are seeing o D

p d b s a North mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver ve ls Delbrook increased interest as tenants are willingBC RAIL to Mathersforgo Ave proximity to transit for more financially d attractive spaces. However, 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 v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor this does not offset the slow absorption of new developments,l resulting in gradually rising vacancy rates and Ma l rin e e F Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 creative inducements to attract tenants. 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 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

trends and highlights p

r Burrard Inlet k A

e

r s Dr a M Panoram

e

m H

o Ioco Rd e r r

i it

a B

a a

l r

n g

B et C.P.R.

H e

◊ English Bay r ig Burnaby continues to offer opportunities for tenants seeking large i h McGill St d w

ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n office spaces with three tenantsMa from a range of industriesVancouver each s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd A u Stave Lake Parker St University WCE Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd searching for space in excess of 100,000 square feet. Roundhouse Falcon S B Kyle-Queens Coquitlam Poin Port Moody Ioco-Moray t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g 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 University of ern Brentwood y W Dr Commercial Gilmore y Town Centre W 10th Ave W Broadway 2&3 1 ◊ While face rates remain relativelyBritish Columbia stable, there has been an St Renfrew Holdom C Clarke Rd 4 Broadway/ Commercial Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver Sperling/ Coquitlam

t Grandview Hwy Burnaby Lake y Burns Rd S Maple

Kingsway Ave

unprecedented level of inducements with some landlords offering 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 a o i Sprott St Linton St 7 n Nanaimo St

M

Edward St Rupert M cash allowances, as well as ethe more traditional free rent and Town Centre Rd Gatensbury Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d

B Rd Neaves 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 tenant improvement allowances. v

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 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 D Rd Cameron W 49th Ave Langara/ 7 6th St Mary Hill Bypass Meadows 2014 Q4 2015 Q1 TREND49th 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 t

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

t n e River Dewdney Trunk Rd Dewdney Trunk Rd v

S 8th Ave n PITT MEADOWS l

y Limbert Rd

Rumble St B Hammond Rd S t Office Inventory* (SF) 10,728,288 10,728,288 r AIRPORT o 6th Ave li Nelson Ave id Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr e Meadows d Knight St Bridge 17 R a W 70th Ave N Kent Ave S Fraser Perimeter Rd iver Port n

1 Oak Ave Royal R e P Fraser Wy Haney y Gilley Ave at B e u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k Twigg Pl e y Bridge 112th Ave B t Scott Rd S VANCOUVER S e Bridge Rd Net Absorption (SF) 239,755 (71,847) g v t New 110th Ave C.N.R. 112th A 112th Ave n INTERNATIONAL i B 22nd St Westminster Templeton a rid Grosvenor Rd L River d g AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie 91A Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a Vacancy Rate 10.8%t 11.4% 104th Ave 104th Ave t r 99 North Surrey S a Central er Farms Rd Farms iv i R Rd t l l Aberdeen Notable Lease Notable Sale New Supply Wilson St Ke e O Cambie Rd 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

Average Asking Net Rent** $22.64 $22.38 d o e W 280th St r e Rd R Alderbridge Wy i y Richmond Annacis Highway n l 156th St g 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 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 S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av T Yal Average Additional Rent $13.34 $13.78 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 notable lease transactionCli S x a Granville Ave Hatzic D y F 88th Ave 88th Ave 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 Richmond s 88th Ave Lake 1st Ave *There are 138 office buildings surveyed in the Burnaby region 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 ** Average Asking Net Rent is calculated using a weighted average e APPROX. 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd e o Mission St Cedar TENANT TYPE ADDRESSN Rd lliwack Mtn Rd Rd Ford 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. King George Highway Annacis N R Paci”c Highway Harvie Rd Gilbert Rd Size (SF) i 80th Ave i Eagle Rd c St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run 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

Historical Performance and forecast 76th Ave l u co t Fraser River h e e h Fraser - Delta Thruway Fraser 7 t Wy k t 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 Arista Networks 76th St 80th St Headlease 9200 Glenlyon Parkway 34,000 p 168th St 176th St 184th St Steveston Hwy 1. h 7th Ave v W Yale Rd 144th St 140th St

a 152nd St

River Rd 72nd Ave Newton Rd T t 14.0% 600,000 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 George Massey Tunnel BYPASS R lli

12.0% 400,000 d w ac R

Trans Canada Highway k i

17 RAILWAY W Yale Rd v e

Coastal Contacts Headlease 2955 Virtual Way 22,000 r

2. Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d

Satchell St Satchell a Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

10.0% 200,000 B.N.R. Page Rd i

R

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 8.0% - 56th Ave Promontory Rd 3. Active Network Sublease 2925 Virtual Way 12,500 56th Ave 11 Watson Rd W Douglas Cr d B.C. RAIL 208th St LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser t 56th Ave

e 72nd St AIRPORT Hopedale Rd iv Rd Sumas Prairie 6.0% (200,000) 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 S 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 4.0% (400,000) de Townshipline Rd unta C SOUTHERN RAILWAY 15 Cr 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 notableu sale transactionS Straiton R h Clayburn Rd 44 Ave d

2.0% (600,000) t Yarrow Central Rd r 17

328th St A 64th St 40th Ave 40th Ave 40th Ave 40th Ave 40th Ave Mud Bay Downes Rd S u Fireclay Rd There were no significantBOUNDARY sale BAY transactions this quarter in the Burnaby submarket. m No. 4 Rd 36th Ave as AIRPORT M 0.0% (800,000) Paci”c 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 2011 Q1 2011 W 2011 Q3 2011 2013 Q1 2015 Q1

2016 Q1 28th Ave 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 S s 2013 Q3 F 2015 Q3 a 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4

2012 Q4 2014 Q2 e

2012 Q2 27B Ave w t rg 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 Net Absorption (SF) New Supply (SF) Vacancy Rate (%) 188th St Old Yale 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave

Ross Rd Ross Trans Canada Hwy 17 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 UPCOMING new supply Marine Dr 12th Ave Peardonville Rd

B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT

a McCallum Rd r Whatcom Rd Whatcom Cole Rd Rd McDermott Marion Rd Rd Powerhouse address class Floors total officey area (SF) developer 264th St B ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

R

Causeway Rd Roberts Point B.N.R. 8th Ave d BC FERRIES A. SOLO District Office A 12 230,000 Appia Group 176th St TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA B. Renfrew Centre - 2665 Renfrew Street A 7 U.S.A.161,611 AIMCo/Blackwood Partners U.S.A. U.S.A. C. Eastlake Campus - 8335 Eastlake Drive Flex up to 3 138,671 Adera D. Silver - 4832 & 4394 Beresford Street A 2 10,200 Intracorp

4 Buntzen Lake Capilano Lake

West Vancouver r m D r d

h R A g u no n o r a a

r l i i o D

p d b s a North mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver 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 v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 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 p

r Burrard Inlet k A

e

r s Dr a M Panoram

e

m H

o Ioco Rd e

OFFICE MARKET SUMMARY r r

i it

a B

a a

l r

n g

B et C.P.R. H e

English Bay r ig i h McGill St d w

ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r New westminster n r n Ma Vancouver s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd Parker St University WCE u Stave Lake Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd Roundhouse Falcon S Poin Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g W 4th Ave Olympic Village l

Wesbrook Mall G Ave Gilmore New Westminster’sr vacancy rate1st Avewas steady with slowWillingdon Ave deal activity matched by fewar spaces becoming available for Prairie Ave Holdom St Gerald Ave Gerald e Sperling St d McNeil Rd at North VCC/Clark i W University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 British Columbia St Renfrew Holdom Clarke Rd 4 lease. ActivityBroadway/ from smallerCommercial tenants remains in the Class B market with no change in absorption in the Class A Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver Sperling/ Coquitlam t

market, where vacancy is substantiallyGrandview higher. Hwy This trend is expectedBurnaby Lake to continue as the market faces challenges 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 absorbing new supply. u r King Edward Ave King Lougheed a o i Sprott St Linton St 7 n Nanaimo St

M

Edward St Rupert M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d

B Rd Neaves 29th Ave R Crown St Crown St Dunbar T

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

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 hw P ◊ Future Oakridge/41stoffice Ave development projects will be limited as the $28 ay Brunette Ave W 41st Ave E 41st Ave Grange St Burnaby Braid Shaughnessy North Rd W Boulevard average asking rate of new Class A buildings is not financially United Blvd 128th Ave 128th Ave Earles St Pitt Patterson Hartley Rd 7 W 49th AvefeasibleLangara/ for tenants when Class B buildings offer more affordable 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

rates at a $15.71 average. 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 t

Cambie St Kingswa s y a

C.P.R. Harrison Bay 264th St ◊ t Tenant demand remains driven by local professional and medical e n 2 River Dewdney Trunk Rd Dewdney Trunk Rd v

S 8th Ave n PITT MEADOWS l

y Limbert Rd

Rumble St B Hammond Rd S t r AIRPORT businesses servicing the New Westminstero community. 6th Ave li Nelson Ave id Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr 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 1 at B e u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k 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 2014 Q4 2015 Q1 TREND 22nd St Westminster Templeton a rid Grosvenor Rd L River d g AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie Office Inventory* (SF) 1,739,373 1,739,373 91A Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave 104th Ave t r 99 North Surrey S a Central er Farms Rd Farms iv i Net Absorption (SF) (4,189) 1,887 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 Vacancy Rate 16.4% 16.3% 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway o e W d 280th St r eNotable Lease Notable Sale New Supply Rd R Alderbridge Wy i y Richmond Annacis Highway n l 156th St g 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 96th Ave Richards Ave A R

Average Asking Net Rent** $22.80 $22.99 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 S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av T Yal Average Additional Rent $13.07 $13.22 a r e R n A u Wellington Ave d e w n notabled leasel transactionS k y ve e Rd Chapman Rd 120th St 128th St 132nd St Ferndale Ave Cli x a Granville Ave Hatzic

*There are 40 office buildings surveyed in the New Westminster region H D y F 88th Ave 88th Ave erw W r Fraser River 1A No. 9 Rd e a No. 8 Rd No. 7 Rd n Clay St Clay Nelson Rd t Richmond** Average Asking Net Rent is calculated using a weighted average s APPROX. 88th Ave Lake 1st Ave Blundell Rd e VIA RAIL TENANT r TYPE ADDRESS Hawkins Pickle Rd

B y 7 Wolfe Rd Blundell Rd Rd 216th St Topham r W Size (SF) Glover Rd i l 84th Ave d 84th Ave e 1 Johnson Rd g rd Telegraph Tr Dewdney Trunk Rd Historical Performance and forecast e o Mission St Cedar N Rd lliwack Mtn Rd Rd Ford C.N.R. Nicomen Island Trunk Chi Francis Rd C.N.R. 22nd Ave Chilliwack Central Rd No. 1 Rd Sea to Sky Law No. 4 Rd No. 3 Rd No. 5 Rd No. 6 Rd C.N.R. King George Highway Annacis N R Paci”c Highway Harvie Rd Gilbert Rd Headlease 625 Agnes Street 6,000 i 80th Ave i 18.0% 300,000 1. Eagle Rd c St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown Corporation e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden runk R 16.0% 250,000 80th Ave 7 Tyler d d 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 7 t Wy 200,000 k t w

14.0% Burnaby Square 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 150,00080th St p

Orthopaedic & Sport Headlease 610 6th Street 3,176 168th St 176th St 184th St Steveston Hwy 2. h 7th Ave v W Yale Rd 144th St 12.0% 140th St

a 152nd St

River Rd 72nd Ave Newton Rd T t Progress Wy 72nd Ave 240th St r 100,000 Centre Inc Surrey S Luckakuck Wy 72nd Ave V 10.0% St Wren 72nd Ave 72nd Ave 1st Ave Industrial Wy e d

50,000 Mission d

72nd St McTavish Rd Newton Rd C e

Moncton St Gibson Rd No. 2 Rd r HWY 10 Rd Prest Rd Banford 8.0% 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 k

6.0% i

17 RAILWAY W Yale Rd v

(50,000) e r

Kitson Pkwy Dyke Rd 4.0% 64th Ave R Lickman Rd

(100,000) SOUTHERN RAILWAY s d Satchell St Satchell a notable sale transactionS Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n B.N.R. Page Rd i

2.0% (150,000) R

272nd St 1 Peters Rd

60th Ave Delta There were no significant sale transactions this quarter in the New Westminster C.N.R. d Chadsey Rd Chadsey Bailey Rd 0.0% (200,000) 60th Ave S Sumas Rd submarket. Logan Ave 58th Ave 148th St 99 140th St Fore Rd 60th Ave 56th Ave Promontory Rd 56th Ave 11 Watson Rd 2011 Q1 2011 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2014 Q1 2011 Q4 2011 2011 Q2 2011 2012 Q1 W Douglas Cr 2013 Q3 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2 2012 Q2 d B.C. RAIL 208th St LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 56th Ave

e 72nd St AIRPORT Sumas Prairie Rd Sumas Prairie Net Absorption (SF) New Supply (SF) Vacancy Rate (%) Hopedale Rd iv 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 203rd St 203rd UPCOMING new supply 48th Ave Fraser Highway d G Gladwin Rd R ra Riverside Rd Bell Rd in de Townshipline Rd unta C SOUTHERN RAILWAY 15 Cr 48th Ave Mo h 17A 48th Ave No. 3 Rd der il There are no approved new office developments for the New Westminster submarket. 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 17

328th St A 64th St 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 Paci”c 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 FIRST QUARTER 2015 17 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

a McCallum Rd 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

R

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. Buntzen Lake Capilano Lake

West Vancouver r m D r d

h R A g u no n o r a a

r l i i o D

p d b s a North mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver 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 v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 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 p

r Burrard Inlet k A

e

r s Dr a M Panoram

e

m H

o Ioco Rd e r r

i it

a B

a a

l r

n g

B et C.P.R. H e

English Bay r ig i h McGill St d w

ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n Ma Vancouver s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd OFFICE MARKET SUMMARY Parker St University u Stave Lake WCE Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd Roundhouse Falcon S Poin Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g 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 University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 British Columbia St Renfrew Holdom Clarke Rd 4 richmond Broadway/ Broadway Commercial Como Lake Ave Port Coquitlam 4 Burquitlam City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver 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 a o i Sprott St Linton St 7 n Nanaimo St

M

Edward St Rupert M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d The Richmond market experienced moderate activity this quarter with vacancy at its lowest since 2009. Business B Rd Neaves 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 v

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 parks continue to retain tenants through high inducements and attractive amenity packages. While vacancy is 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 decreasing, transactions remain primarily with existing tenants expanding andW 49th Averelocating,Langara/ resulting in expected Rd Cameron 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 stable vacancy in 2015. 10th Ave t

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

t n e River Dewdney Trunk Rd 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 li Nelson Ave id Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr 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 Trends and highlights P Fraser Wy Haney y Gilley Ave at B e u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k 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 Templeton a rid Grosvenor Rd L River d ◊ g While vacancy remains substantially lower in buildings along No. R AIRPORT r Gateway 108th Ave Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie 91A Grant McC e S Bridgeport Rd Scott Rd v

3 Road with access to the Canada Line, shuttle services have Fraser Wy 240th St a t 104th Ave 104th Ave t r 99 North Surrey S a Central er 2 Rd Farms iv i R Rd t ll helped attract tenants for business parks off transit lines. 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 1&3 100th Ave 272nd St v e Vulcan Wy e u Fraser Highway

o e W d

◊ 280th St

6500 River Road is slated for demolition for Aspac’s Phase II R r e Rd Alderbridge Wy i y Richmond Annacis Highway n l 156th St g 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 96th Ave Richards Ave A R

d River Rd u 99A C d River Rd g r pe development of Rivergreen in 2016, furthering the evolution of the 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 S n Westminster Hwy 92nd Ave r e G

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av T Yal a r e R highest and best use of land in Richmond. 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 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 Richmond s 88th Ave 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 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. King George Highway Annacis N R Paci”c Highway Harvie Rd

Gilbert Rd i 80th Ave i Eagle Rd c 2014 Q4 2015 Q1 TREND St v o Railway Ave Railway Huston Rd 80th Ave e m Brown Rd Brown e Rd Annis r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run 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 7 t Wy k t w

g C.P.R. a 208th St 216th St 192nd St Office Inventory* (SF) 3,903,020 3,903,020 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 Net Absorption (SF) (72,252) 82,023 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 k i

17 RAILWAY W Yale Rd v

e Vacancy Rate 17.7% 15.6% r

Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d

Satchell St Satchell a Upper Sum Mou Notable Lease Notable Sale NewSt 62B Supply Glover Rd nta

64th Ave n

B.N.R. Page Rd i

R

272nd St 1 Peters Rd 60th Ave Delta C.N.R. d Average Asking Net Rent** $14.90 $14.64 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 Average Additional Rent $9.22 $8.89 d B.C. RAIL 208th St LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 56th Ave

notable lease transactionS e 72nd St AIRPORT Hopedale Rd iv Rd Sumas Prairie R 53rd Ave Keith Wilson Rd Station Rd Colebrook Rd

*There are 78 office buildings surveyed in the Richmond region 160th St

Robertson Rd Robertson ok R Westham Island Rd olebro d C 304th St 296th St **Average Asking Net Rent is calculated using a weighted average 10 Ladner Trunk Road APPROX. St 288th Sinclair Rd 203rd St 203rd TENANT TYPE ADDRESS 48th Ave Fraser Highway d G Gladwin Rd R ra Riverside Rd Bell Rd in de C Townshipline Rd unta C Size (SOUTHERNSF )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 Historical Performance and forecast r Rd ke u Straiton R h Clayburn Rd 44 Ave d t Yarrow Central Rd

FedEx Trade Networks r 13777 Commerce17

328th St A 1. Expansion 64th St 10,900 40th Ave 40th Ave 40th Ave 24.0% 200,000 40th Ave 40th Ave Transport & Brokerage Inc. Parkway Mud Bay Downes Rd S BOUNDARY BAY um Fireclay Rd No. 4 Rd 36th Ave a AIRPORT s .R. M Paci”c Highway

34B Ave t n North Parallel C.P

100,000 Abbotsford R South Parallel

d 22.0% Langley d R Cultus

d - BellinghamAldergrove Highway Deltaport Wy 32nd Ave Rd Boundary RockTenn Headlease 13160 Vanier Place 10,100 R 32nd Ave rn 2. 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 20.0% 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 (100,000) 13777 Commerce B o 1A L

MNP LLP Sublease 52nd St 56th St 8,400 18.0% 3. 188th St Old Yale Parkway 24th Ave 24th Ave Rd Campbell Rd 24th Ave 24th Ave (200,000) Rd Ross Trans Canada Hwy 17 Mt. Lehman Rd 152nd St 124th St 140th St 128th St

20th Ave 20th Ave McMillan Rd 20th Ave Marshall Rd Hwy Interprovincial 16.0% 20th Ave 13 (300,000) 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 14.0% North Blu— Rd 16th Ave 16th Ave (400,000) Marine Dr 12th Ave Peardonville Rd B ABBOTSFORD 11

notable sale transactionS o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT

a McCallum Rd 12.0% (500,000) r Whatcom Rd Whatcom Cole Rd Rd McDermott Marion Rd Rd Powerhouse There were no significant sale transactions this quartery in the Richmond 264th St B ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

R

Causeway Rd Roberts Point B.N.R. 8th Ave submarket. d BC FERRIES 176th St 2011 Q1 2011 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 172nd St 176th St 2013 Q3 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2 2012 Q2 TERMINAL 1st Ave TSAWWASSEN Net Absorption (SF) New Supply (SF) Vacancy Rate (%) CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA U.S.A. U.S.A. U.S.A.

UPCOMING new supply There are no approved new office developments for the Richmond submarket.

6 Buntzen Lake Capilano Lake

West Vancouver r m D r d

h R A g OFFICE MARKET SUMMARY u o n n o r a a

r l i i o D

p d b s a North mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver 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 v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Rd Dr y

Mountain Hwy Larson Rd a B Surrey 15th St ll e

ge Lonsdale Ave d Ave Chester”eld 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 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 p

r Burrard Inlet k A

e

r s Dr a M Panoram

e

m H

o Ioco Rd e r r

i it

a B

a a

l r

n g

B et C.P.R. H e

English Bay r ig i h McGill St d w

ay Strong touring activity sustained Surrey’s leasing market fromg Eton St a variety of smaller tenants seeking office space and

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n Ma Vancouver s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd Parker St University WCE u Stave Lake Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd Roundhouse Falcon S Poin Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St rey Rd Cornwall St G Central Cedar Dr increased activity in business parks. Successful landlords offered high inducementsa to secure tenants resulting in Clark Dr g 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 University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 British Columbia St Renfrew Holdom Clarke Rd 4 Broadway/ Commercial Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver 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

low net effective rates. Vacancy rates continue 2014’s trend between 20.0 percenta to 21.5 percent and are expected

W Springs Rd Springs

University t n i Ridge M n

r Lougheed Highway

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

M

Edward St Rupert M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d

B Rd Neaves 29th Ave R Crown St Crown St Dunbar T

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

Ca i n R

Broadway St Broadway 7

ad Dewdney Trunk Rd McCallum Rd

Joyce a t 132nd Ave

t

to remain stable until the release of new developments. Hi 1 i 7 9 g 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 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 St Laity e

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

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

t n e River Dewdney Trunk Rd Dewdney Trunk Rd v

S 8th Ave n PITT MEADOWS l

y Limbert Rd

Rumble St B trends and highlights Hammond Rd S t r AIRPORT o 6th Ave li Nelson Ave id Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr 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 u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k 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 Templeton a rid Grosvenor Rd L River d

AIRPORT g Gateway R Sea Island r e 108th Ave 108th Ave u y Rd B e Centre th W YVR Ar Vulcan C.N.R. Byrne Rd k ◊ Strata sales are strong in Surrey, as exemplified by City Centre 1 at a Wy Bridgeport L Airport onachie 91A D 3 Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave t r Surrey 104th Ave 99 North Surrey S a Central er Farms Rd Farms v i i Rd t C R 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 90% sold, 3 Civic Plaza at 60% pre-sold,f and theW Croydon Business 100th Ave A 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 148th St g 156th 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 96th Ave Richards Ave A R

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

Centre which is now 90 percent sold after Cloverdale Paint’s purchase l h

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

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

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av 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 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 of the top floor this quarter. s 88th Ave Richmond 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 1&2 Mission St Cedar N Rd lliwack Mtn Rd Rd Ford 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. King George Highway Annacis N R Paci”c 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 e Rd Annis r n I

280th St s ◊ C.N.R. R la MNP’s acquisition of KNV LLP will result in the consolidation of the nd T Garden City Rd City Garden run 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 7 t Wy k t 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 two offices into the newly constructed Southpointe 99 Business 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 Prest Rd Prest HWY 10 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 k i

17 RAILWAY W Yale Rd v

Park. e r

Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RAILWAY s d

Satchell St Satchell a Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. Page Rd i

R

272nd St 1 Peters Rd 60th Ave Delta C.N.R. d 2014 Q4 2015 Q1 TREND 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 LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 56th Ave

e 72nd St AIRPORT Hopedale Rd iv Rd Sumas Prairie 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 Office Inventory* (SF) 3,834,227, 3,834,227 10 St 288th Ladner Trunk Road Sinclair Rd 203rd St 203rd 48th Ave Fraser Highway d G Gladwin Rd R ra Riverside Rd Bell Rd in de Townshipline Rd unta C SOUTHERN RAILWA 15 Cr 48th Ave Mo h 17A Y 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 17

328th St A 64th St 40th Ave 40th Ave 40th Ave Net Absorption (SF) 18,263 (4,859) Mud Bay 40th Ave Downes Rd 40th Ave S BOUNDARY BAY um Fireclay Rd No. 4 Rd 36th Ave as AIRPORT M Paci”c 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 n 4 Cla d 1 e 32nd Ave R Atkinson Rd No. 5 Rd c Su Old n Cres ma t s M Vacancy Rate 21.0% 21.1% 28th Ave S F W as

27B Ave w t erg a 168th St 184th St Rd Clearbrook 160th 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 17 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

Average Asking Net Rent** $19.24 $17.58 192nd St 1 Notable Lease Notable Sale New Supply Rd Dixon 16th Ave 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

a McCallum Rd r Whatcom Rd Whatcom Cole Rd Rd McDermott Marion Rd Rd Powerhouse y 264th St Average Additional Rent $10.19 $10.65 B ay 8th Ave Campbell River Rd 8th Ave Huntington Rd 8th Ave Vye Rd 6th Ave

R

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

TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN *There are 69 office buildings surveyed in the Surrey region CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA U.S.A. notable lease transactionS U.S.A. U.S.A. **Average Asking Net Rent is calculated using a weighted average 1Surrey Vacancy rate excluding 14178 104th Avenue was 15.3% in 2014 Q4 and 15.4% in 2015 Q1. 14178 104th Avenue APPROX. remains fully vacant for the past 14 years and consists of 259,474 SF of space. TENANT TYPE ADDRESS Size (SF) Historical Performance and forecast ATI Telecom Surrey Central 1. Headlease 25,000 25.0% 200,000 International Co. Business Park 150,000 Community Living Surrey Central 20.0% 2. Headlease 10,000 100,000 Services Business Park

15.0% 50,000 - notable sale transactionS 10.0% (50,000) APPROX. (100,000) purchaser price ADDRESS 5.0% Size (SF) (150,000)

0.0% (200,000) 3. Private Investor $10,500,000 10428 153 Street 27,098 2011 Q1 2011 2011 Q3 2011 2013 Q1 2015 Q1 2016 Q1 2011 Q4 2011 2014 Q1 2011 Q2 2011 2012 Q1 2013 Q3 2015 Q3 2013 Q4 2014 Q3 2012 Q3 2013 Q2 2015 Q4 2015 Q2 2014 Q4 2012 Q4 2014 Q2 2012 Q2 Cloverdale Paint Unit 400, 2630 Croydon Net Absorption (SF) New Supply (SF) Vacancy Rate (%) 4. $5,868,798 17,420 Real Estate Ltd. Drive

UPCOMING new supply address class Floors total office area (SF) developer A. King George Station (Phase A) A 9 160,000 PCI B. Gateway Place - 13479 108th Avenue A 4 60,000 Bosa Properties C. 3 Civic Plaza A 5 50,000 Century Group D. 13769 104th Avenue A 3 12,880 Heighton Developments

FIRST QUARTER 2015 Buntzen Lake Capilano Lake

West Vancouver r m D r d

h R A g u no n o r a a

r l i i o D

p d b s a North mar Rd n th n Ave e I u e C ra 99 Upper So v B te Edgemont Blvd S Queens Ave Le Vancouver 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 v Lynn Valley Rd t

15th St

A

E Riverside Dr M Taylor Wy Taylor

l Ma l rin e e F Rd Dr y

Mountain Hwy Larson Rd a B 15th St ll e

ge Lonsdale Ave OFFICE MARKETAve Chester”eld SUMMARYd 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 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 p

r Burrard Inlet k A

e

r s Dr a Langley M Panoram

e

m H

o Ioco Rd e r r

i it

a B

a a

l r

n g

B et C.P.R. H e

English Bay r ig i h McGill St d w

ay g Eton St

Burrard Waterfront 7A M DenmanDavie St St e o La n Wy Pinetree u ds t Paci”c St Dundas St n d Coquitam S t o a w y Victoria Dr ne D Granville i Johnson St s i r n r n Ma Vancouver s E Hastings Street e e W City Centre B

n

N D Stadium/Chinatown l

Simon Fraser v h r

d Port Moody g Woodland Pipeline Rd Coast Meridian Rd Parker St University WCE u Stave Lake Venables St Curtis St Lincoln a Yaletown/ St. Johns St h Richardson Rd Roundhouse Falcon S Poin Kyle-Queens Port Moody Ioco-Moray Coquitlam t G Main St re Cornwall St G Central Cedar Dr y Rd a

Clark Dr g 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 University of ern Brentwood y Wy Dr Commercial Gilmore W 10th Ave W Broadway Town Centre 1 Langley’s moderate leasing St Renfrew activityHoldom this quarterClarke Rd was offset by its strong strata sale activity.4 While vacancy rates British Columbia Broadway/ Commercial Port Coquitlam 4 Broadway Burquitlam Como Lake Ave City Hall E Broadway th W 12th Ave Lougheed Highway Port St E 12th Ave Renfrew Rupert W 16th Ave Vancouver 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 a o i Sprott St Linton St 7 n Nanaimo St

M

rose, it is expectedEdward to return St Rupert to its downward trend as no office developments are currently under construction and M Town Centre Rd Gatensbury e Winston St D Macdonald St Austin Ave r Nanaimo e u Rd Harris Arbutus St l d

B Rd Neaves 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 v

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 hw P Oakridge/41st Ave ay Brunette Ave a rangeW 41st Aveof tenantsE 41st Ave continueGrange Stto seek a Fraser Valley presence. 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

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 t

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

t n e River Dewdney Trunk Rd 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 li Nelson Ave id Marine Dr SE Marine Dr l Kerr St Edmonds Columbia St Fraser 116th Ave Maple E g H Marine Dr 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 u yp Kent Ave S l 112th Ave 207th St dgO Marine Wy ardson Queens Ave Columbia lo as ri a w W s k 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 trendsa rid and highlights Templeton Grosvenor Rd L River d g AIRPORT r Gateway 108th Ave R Sea Island u e Rd 108th Ave Centre th Wy e Ar Vulcan Byrne Rd k YVR C.N.R. a Wy Bridgeport L Airport onachie 91A Grant McC e S Bridgeport Rd Scott Rd v

Fraser Wy 240th St a t 104th Ave 104th Ave t r 99 North Surrey S a Central er Farms Rd Farms iv i 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 ◊ e King George 100th Ave e

RDGk Corporate Centre saw an uptake in interest this quarter with 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 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 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 a rising demand for high-end strata office. d Rd McGrath Farms Rd

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

i d e deg 92nd Ave y Lougheed Highway r E Brighouse Av 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 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 Richmond s 88th Ave Lake 1st Ave Blundell Rd e r VIA RAIL Hawkins Pickle Rd

◊ Leasing demand is driven by tenants with B requirementsy of 5,000 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 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. King George Highway Annacis N R Paci”c 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 square feet and under, particularly from financial businesses and Rd Annis e r n I

280th St s C.N.R. l R and T Garden City Rd City Garden run 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 7 t Wy k t 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 other professional services. 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 1 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 SOUTHER i George Massey Tunnel BYPASS N R lli

d w ac R

Trans Canada Highway k i

17 RAILWAY W Yale Rd v e r

Kitson Pkwy Dyke Rd 64th Ave R Lickman Rd

SOUTHERN RA s d

Satchell St Satchell a Upper Sum Mou 62B St 62B Glover Rd nta

64th Ave n

B.N.R. Page Rd i

R

272nd St 1 Peters Rd 60th Ave Delta C.N.R. d Chadsey Rd Chadsey Bailey Rd ILWAY 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 LANGLEY 56th Ave Harris Rd R r Mission-abbotsford Highway South Fraser Perimeter Road Perimeter South Fraser 56th Ave

e 72nd St AIRPORT Hopedale Rd iv Rd Sumas Prairie R 53rd Ave Keith Wilson Rd Station Rd Colebrook Rd 160th St

Robertson Rd Robertson ok R Westham Island Rd 2014 Q4 2015 Q1 TREND 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 de Townshipline Rd unta C SOUTHERN RAILWAY 15 Cr 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 Office Inventory* r (SF) 17 1,104,769 1,104,769

328th St A 64th St 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 Paci”c 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 Net Absorption (SF) 34,590 (47,998) 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 24th Ave 188th St 24th Ave Old Yale Rd Vacancy Rate 14.3% 18.7% 24th Ave Campbell Rd 24th Ave

Ross Rd Ross Trans Canada Hwy 17 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

Notable Lease192nd St Notable Sale New Supply 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 Average Asking Net Rent** $18.29 $16.96 Marine Dr 12th Ave Peardonville Rd

B ABBOTSFORD 11 o

u Buena Vista Ave INTERNATIONAL

n 320th St d AIRPORT

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

R

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

Average Additional Rent $8.48 $9.00 176th St

TERMINAL 172nd St 176th St 1st Ave TSAWWASSEN Notable lease transactionS CANADA CANADA 0 Ave Boundary Rd 0 Ave Boundary Rd Boundary Rd CANADA *There are 22 office buildings surveyedU.S.A. in the Langley region U.S.A. U.S.A. APPROX. ** Average Asking Net Rent is calculated using a weighted average TENANT TYPE ADDRESS Size (SF) 1 Historical Performance and forecast First West Credit 1. Headlease 20033 64th Avenue 4,800 25.0% 100,000 Union 80,000 20.0% 60,000

15.0% 40,000 20,000

10.0% -

(20,000) 5.0% (40,000) Notable sale transactionS 0.0% (60,000) APPROX. purchaser price ADDRESS Size (SF) 2015 Q1 2016 Q1 2014 Q1 2015 Q3 2013 Q4 2014 Q3 2015 Q4 2015 Q2 2014 Q4 2014 Q2 Langley Memorial 20550 Fraser Highway 2. $2,500,000 15,086 Net Absorption (SF) New Supply (SF) Vacancy Rate (%) Hospital Auxiliary 20560 Fraser Highway 1Colliers started tracking Langley office space in Q1 2013

UPcoming new supply There are no approved new office developments for the Langley submarket.

8 OFFICE MARKET SUMMARY glossary

Class AAA Building: A subset of Class A buildings which are locally recognized as being the top tier, most prestigious buildings that command the highest rental rates in the area.

Class A Building: Prestigious buildings competing for premier office users with rents above average for the area. Buildings that have high-quality standard finishes, state-of-the-art systems, exceptional accessibility and a definite market presence. Characterized by: prime central location; first-class tenant improvements; on-site parking; state-of-the-art elevators and HVAC systems; concrete and steel construction; contemporary design and architecture; high quality of upkeep and maintenance.

Absorption: The net statistical change in occupied space over a period of time. Positive absorption reflects an increase in occupied space while negative absorption reflects a decrease.

Additional Rent Operating costs and property taxes per annum, per square foot.

Asking Net Rent: Base rent (net, face or contract) per annum, per square foot excluding operating costs.

Class B Building: Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same prices. Characterized by new buildings in non- prime locations and older buildings (including rehabilitated structures in prime locations); good-quality tenant improvements; may have on-site parking; elevators and HVAC served; built using a variety of construction methods; upkeep and maintenance is generally good.

Class C Building: Buildings competing for tenants requiring functional space at rents below the average for the area. Characterized by older structures, may or may not have been renovated; poor-to-average quality of tenant improvements; may not have elevators and air conditioning systems; generally no parking facilities; lower quality of upkeep and maintenance. May also include renovated heritage buildings with good-quality tenant improvements and upgraded building systems.

Flex Space: Single-storey buildings having 10-to-I8-foot ceilings with both grade and dock-height loading. Includes wide variation in office space utilization, ranging from retail and personal service through distribution, light industrial and occasional heavy industrial use.

FIRST QUARTER 2015 Headlease: A lease directly from a landlord.

Sublease: A lease given by one of the tenants in the building for the remaining portion of its lease term.

Vacancy Rate: The percentage rate derived by dividing the total inventory physically vacant as of the survey date including direct vacant and sublease space by the total inventory.

10 OFFICE MARKET SUMMARY Forecast Assumptions

We use a trailing eight-quarter average absorption for our forecast. We take into account incoming new supply and the amount of space pre-leased for each property in order to forecast the future vacancy rate.

FIRST QUARTER 2015 This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2015. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls Brokerage Inc. (Vancouver). *Personal Real Estate Corporation. OFFICE TEAM

Kayvon Besharat* Jeff Kincaid-Smith* Colin Scarlett* Matthew Carlson Brian MacKenzie Jason Teahen* Robert Chasmar* Derek May Graham Davidson Stephen Moscovich Marco DiPaolo* Peter Muench John Freyvogel* Devin Ringham Dan Jordan* Dylan Sohi

Maury Dubuque Managing Director | Vancouver Brokerage DIRECT: +1 604 662 2641 [email protected]

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