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North Shore Report Fall 2008

Investment Overview The commercial real estate market continues to show reasonable strength in British Columbia, despite the growing pessimism migrating its way from the United States to the rest of North America. Many leading economists believe the worst of the current financial “crisis” affecting the U.S. will abate by mid-2009 when modest growth will start to allow the economy to gain back some of its recent losses. Capilano Village located at 801 Marine Drive (and Fell Ave.) sold in April. This 32,600 square foot strip mall commanded a $14,900,000 price, equating to a 6% capitalization rate. We anticipate that CAP rates will continue to rise in the coming months before settling out at approximately 6.75% to 7.25% on stabilized income. For now, the days of high valuation, sub-5% capitalization values are behind us. Retail Overview The North Vancouver retail lease market remains strong. Base rates range from $15 to $45 per square foot depending on several factors including exposure, age, parking, proximity to transportation and most importantly, frontage on major shopping streets such as Lonsdale Avenue and Marine Drive. Office Overview The vacancy rate has dropped by 8.3% since the end of 2006 and currently stands at 3.4%. Outside of Downtown Vancouver, the North Shore vacancy rate is the lowest compared to any other area in Metro Vancouver. The former North Shore News building at 1133 Lonsdale Avenue is slated for completion in the Fall of 2009. The fourstory building will add over 21,000 square feet to the office market and 7,000 square feet of ground floor retail space just south of 13th & Lonsdale. Industrial Overview Lease rates for Industrial properties jumped significantly in the past two years, largely due to the rapid rise in land values and decreasing supply, particularly on the North Shore. As an example, Phase IV of the Northwoods Business Park, which is slated for completion Spring 2009 is being marketed at $15/sq. ft. shell rates. High land prices and lease rates are a function of the lack of product available on the market. Within the last 4 months there has only been one industrial sale reported.

Matt Thomas

(604) 630 3396 Matt.Thomas@dtzbarnicke.com

Rand Thomson

801 Marine Drive sold in April 2008 for $14,900,000 Financial Indices

Data for the period of

••

09/30/08

↑↑

09/30/08

3.75%

↑↑

09/30/08

$0.9397

↑↑

09/30/08

€0.6701

↑↑

09/30/08

Bank of Canada

3.25%

Benchmark Bond Yield: 5Y

3.17%

Benchmark Bond Yield: 10Y CAD / USD CAD / EURO

Sources: Bank of Canada and Bloomberg Economic Indices

Data for the period of

GDP (Trillion)

$1.24

↑↑

July/08

Total CPI (2002 = 100)

115.6

↓↓

Aug/08

Inflation

3.5%

↑↑

Aug/08

N Unemployment Rate

6.1%

N PMI

49.9

Retail Sales

$36.0b

••

Aug/08

↓↓

Aug/08

↑↑

July/08

Sources: Statistics Canada Real Estate Indices

Data for the period of

N S&P/TSX Capped Real Estate Index 175.59

↓↓

09/30/08

N S&PTSX Capped REIT Index

120.07

↓↓

09/30/08

Investment in Non-Residential Construction

$10.5b

↑↑

Q2/08

Sources: Statistics Canada and Bloomberg Legend

↑↑

Upward movement since previous period of measurement (Bi-weekly movement for indices measured daily)

↓↓

Downward movement since previous period of measurement (Bi-weekly movement for indices measured daily

•• N

No change since previous period of measurement (Bi-weekly movement for indices measured daily) New Data as of the release of the DTZ Index

(604) 630 3393 Rand.Thomson@dtzbarnicke.com

DTZ Barnicke Vancouver Limited

800 - 475 West Georgia Street Vancouver, BC, Canada V6B 4M9 Tel: (604) 684 7117 Fax: (604) 684 1017

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Vancouver Limited, Real Estate Brokerage 10/2008


Feature Listings 1518 Columbia Street Features:

Fo

r

Sa

le

• • • • •

Investment or Owner/User Stand alone (corner) building 3 grade loading doors 3 phase power Easy access to Highway 1 and Second Narrows Bridge

Lot Size: 12,084.93

Building Size: 9,207 sq ft Asking Price: $2,395,000.00

Fo

r

Le

a se

144 - 146 West 16th Street

ed s $23.00 a per sq ft Gross Le

Unit:

146

144(A)

144(D)

Size:

2,007 sq ft

450 sq ft

519 sq ft

Asking Rate:

$23.00 per sq ft net

$23.00 per sq ft Gross

1602 Pemberton Avenue

Fo

r

Le

a se

Features:

• • • •

Size: 7,000 sq ft

Close to several amenities 2nd floor Asking Rate: $14.00 per sq ft Ample window space Easy access to public transit, banks, restaurants, etc.

The North Shore Report is sent to over 2,000 businesses and 1,000 Investors and Owner/Users, across the North Shore. If you are interested in leasing, subleasing, or selling commercial property please contact either Matt or Rand. Matt Thomas Matt.Thomas@dtzbarnicke.com Direct Tel: (604) 630 3396 Cellular: (604) 230 2324

Rand Thomson Rand.Thomson@dtzbarnicke.com Direct Tel: (604) 630 3393 Cellular: (604) 377 5331

Did you know that every year enough paper is thrown away to make a 12’ wall from New York to California?

Please assist us in our efforts to reduce our impact on the environment by signing up for your email-delivered newsletter at Matt.Thomas@dtzbarnicke.com

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