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GVRD RETAIL YEAR END 2005

MARKET NEWS The GVRD will impose a new “parking tax” affecting all commercial properties in the GVRD. The tax will be assessed based on the square meter

MARKET OUTLOOK British Columbia has been privy to a thriving economy in 2005 resulting in increased consumer spending levels. B.C.’s retail sales were up 5.9% on the year through October, based on the most current figures from Stats Canada, compared to a National average of 4.5%. Canada’s unemployment rate dropped to a 14-year low of 6.4%, while B.C.’s unemplyoment rate outpaced the national average by 1.5% in November and came in at a 30-year low (4.9%) for the Province. The BMO Financial Group forecasts B.C.’s GDP growth at 4.0% for 2006. Despite soaring petroleum prices with averages well over $1.00/litre in the summer, consumer confidence remained high and Canadians continued to spend. A number of factors helped the economy continue in prosperity including a robust housing market, low interest rates and a record setting Canadian dollar. Greater Vancouver’s housing boom has continued as housing starts are anticipated to tally approximately 19,000 for 2005.

INVESTMENT SALES

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In 2005 the retail investment market has seen strong demand from investors and owner users. January through December, Greater Vancouver witnessed 483 retail sale transactions representing over $818 million $1.02 per square meter. of investment. Investor appetite remains sizable for retail product as interest rates have remained low and capital readily available. REIT’s, pension funds and income trust groups have been especially eager to This tax encompasses acquire this popular asset class and have been paying top dollars nationally and internationally. Retail all stalls, ramps, investment product will continue to attract attention from outside B.C. and Canada and we can expect underground parking, capitalization rates to remain at record setting lows. and is estimated at

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The largest sale recorded in the second half of 2005 was for the Riverport Sports & Entertainment Complex in Richmond. Transglobe purchased the six building, 400,000 square foot centre for $85 million and subsequently ($212 psf) which includes facilities for hockey/skating, bowling, skateboarding, aquatics, basketball and a tenants will be affected, 19-screen cinema currently leased to Famous Players. A number of hotel sites were acquired in downtown regardless of the type of Vancouver as well this half of 2005. Westbank Projects Corp. in partnership with Peterson Investment Group purchased the parcel of undeveloped land adjacent commercial building. to the Vancouver Convention Centre expansion from Fairmont Hotels & Resorts Inc. in September for approximately $85 million. The joint venture will see the development of an 800,000 square foot hotel & condominium tower. The Crowne Plaza Hotel Georgia and adjacent parking lot site at 801 West Georgia Street sold to Seattle based developer Goodman Real Estate Inc. for a reported $65 million with plans for a heritage renovation and completion of 375,000 square feet of mixed use hotel and residential development. The Bayshore Hotel and Resort also sold in October 2005 for a reported $19 million. No plans for development are in place presently. lanes, etc. All owners

800 - 475 West Georgia Street, Vancouver, B.C. V6B 4M9 Phone: (604) 684-7117 • Fax: (604) 684-1017 Visit Our W ebsite: www .jjb.com/vancouver Website: www.jjb.com/vancouver


GVRD RETAIL YEAR END 2005 HIGHLIGHTS OF RECENT MOVES AND GRAND OPENINGS VANCOUVER

Retail Area Robson Street

Lease Rates $145-$210

Vacancy Rate Stable

Robson Street High end and luxury retailers line Robson Street, especially in the 10001200 blocks, while tourists, business professionals and locals walk, shop and dine day in and day out. Robson Street, is near O% vacancy, while lease rates remain the highest of any area in the GVRD. Some units are now achieving lease rates up over the $200 mark per square foot. Consequently, an average unit of 1,000 square feet will cost $200,000 per year in rent, without operating costs, for the privilege of calling Robson Street home. In the second half of 2005, a few more retailers have moved, occupied or expanded along Robson Street. Stone Ridge Shoes has opened in the former Swatch location at 1093 Robson Street while a couple of women’s accessory stores offering well priced jewellery and handbags, have opened nearby. Aldo Accessories opened at 1047 Robson Street while Accessorize, a chain originally conceived in the UK, opened at 1167 Robson Street and Xcetera opened at 1073 Robson. American Eagle Outfitters has occupied 1176 Robson Street, Peak Performance, a high performance sports store, has taken over the corner of Robson & Hornby Street (911 Robson), and Guess has leased the former Pastel’s Café at 1101 Robson. Once renovated, this space will feature a smaller format Guess Accessories location.

ALDO ACCESSORIES

ACCESSORIZE

H-mart, an asian grocery chain, is set to open in the first quarter of 2006 at the corner of Robson & Seymour in the L’Aria mixed use development.

Retail Area Denman Street Yaletown Downtown

Lease Rates $20-$50 $30-$40 $40-$100

Vacancy Rate Stable Decrease Stable

Downtown and Yaletown The 800-1000 blocks of Granville Street downtown have seen a resurgence in leasing activity, increases in lease rates and an overall revitalization. Amacon, a Vancouver based development company, has pre-leased all of their retail units currently under construction at 1026 and 1056 Granville Street. A sample of tenants includes, Dare to Wear Lingerie and an undisclosed new restaurant/lounge concept. Adidas Shoes has opened at 848 Granville Street while Puma Shoes has reportedly leased in the 900 block of Granville Street and will open in the spring of 2006. The Bonnis Group is in the midst of street front retail construction along the 900 block. Six retail units are available and are approximately 2,000 square feet each. Asking lease rates in this area are now up to $80 per square foot, indicative of the evolving strip. Just off of Robson Street on Burrard, Lacoste has also opened (779 Burrard Street). This is the French company’s first location in Greater Vancouver. Hugo Boss has opened a 1,800 square foot store in the luxury heritage retail area of West Hastings and Howe Street. In the Hudson, the mixed use development at 610 Granville Street, a new steakhouse concept will open a 10,000 square foot flagship location. A high end workout gym has also leased a number of floors in this development. Cadillac Fairview has indicated that they will begin construction in the north end of Pacific Centre in 2006 to accommodate expansion plans for their luxury tenant Holt Renfrew. Holts currently occupies approximately 85,000 square feet on three floors in the East side of Pacific Centre and are looking to reposition and expand to approximately 120,000 square feet.

1047 Robson Street

1167 Robson Street

South Granville Street Luxury retailers are flocking to the South Granville area to join long time residents Meinhardt’s and Restoration Hardware along with new comers Pottery Barn and Misch Shop. New to the scene in the second half of 2005 include American Apparel, Prospera Credit Union and Yves Delorme at the recently completed Shaughnessey Mansions development (15th & Granville Street). Starbucks also successfully opened their second location along this strip in October at 2288 Granville

800 - 475 West Georgia Street, Vancouver, B.C. V6B 4M9 Phone: (604) 684-7117 • Fax: (604) 684-1017 Visit Our W ebsite: www .jjb.com/vancouver Website: www.jjb.com/vancouver


GVRD RETAIL YEAR END 2005 along West 4th, a few more new retailers have also taken space between Burrard and Yew Street. Most notably, Telus and Pure Nail Bar have both opened in the 2100 block of West 4th. This is Pure Nail Bar’s second Vancouver location.

LACOSTE

RETAIL TRENDS U.S. AND INTERNATIONAL TENANTS LOOKING IN VANCOUVER With a thriving economy, steady retail sales numbers and higher disposable incomes available to consumers, a number of new retailers are seeking high end locations in Vancouver. These new retailers come from the U.S., Europe as well as some home-grown Canadian concepts. The most popular category looking to expand is the 15-30 year old apparel sector. H & M, the Swedish retailer, is currently seeking locations as is U.S. based Abercrombie & Fitch. Also Banana Republic, Tommy Bahama and Motherhood Maternity are actively looking to enter and/or expand in the men and women’s apparel categories.

779 Burrard Street Street. Harrison Galleries has vacated their space at 2932 Granville Street and has moved to 901 Homer Street in Yaletown. Lord’s Shoes will be occupying their former South Granville space in 2006. Jack & Jill moved down a block from 2911 Granville to 2825 Granville. Their former space will be converted to a residential condo sales centre. Martha Sturdy will be relocating to larger premises and currently has NEW ENTRANTS & EXPANSIONS- B.C. & CANADA her gallery space for lease at 3039 Granville. Long time resident the Tenant Type Origin Format Looking Apparel Sweden Large National Normandy Restaurant will be closing their 2,400 square foot location H & M Secret Women's Lingerie U.S. Medium National at 2675 Granville Street. They will be replaced by Ecco Shoes in the Victoria William Sonoma Home Furnishing U.S. Large National first quarter of 2006. It has been rumoured that U.S. based Williams- Mango Women's Apparel Spain Large National & Fitch Junior Apparel U.S. Medium National Sonoma, a luxury home store, will construct a 3,000-4,000 square foot Abercrombie Tommy Bahama Apparel & Home U.S. Large National location on the parking lot site at 13th & Granville Street and will open Joseph (Jacob) Mature Women's Apparel U.S. Medium National Sephora Cosmetics Europe Large National in late 2006. Apple Computer Computers & Software U.S. Small National

Retail Area South Granville West 4th Avenue West Broadway Street

Lease Rates $35-$85 $35-$60 $20-$40

Vacancy Rate Stable Decrease Decrease

West Broadway and Kitsilano Area Kitsilano is also abundant with new construction; both residential and commercial. Joey Tomatoes has begun construction on their new location at the former Kits Pub site at 1424 West Broadway. The 6,000 square foot restaurant is anticipated to open in March of 2006. Construction will be commencing in 2006 on the Royal Bank site at Cambie and West Broadway. PCI Group purchased Fairchild Plaza in 2005 and will develop 98 residential units along with 122,000 square feet of retail space and 98,000 square feet of office space. The development will incorporate the Canada Line (RAV line) from YVR to downtown and feature Whole Foods as the anchor tenant upon completion in 2007.

Olsen Geox Bass Pro

Women's Apparel Men's & Women's Footwear Outdoor Sports

U.S. Italy U.S.

Small Small Large

National National National

SUBURBAN

First Pro Shopping Centres, Surrey First Pro and Loblaw Properties have permits and rezoning applications in with the City of Surrey regarding their large site on 24th Avenue. The site comprises the four corners of 24th Avenue and 160th Street and will offer an estimated 934,000 square feet of retail space to the area. Wal-Mart, Home Depot and The Real Canadian Superstore are anticipated to be anchor tenants. First Pro has also begun developing their large site at 88th & 124th Street in Surrey. This development currently features Wal-Mart and will include other large format retailers.

Seymour Creek Village, North Vancouver Kingswood Capital & Progressive Group will be developing 30 acres of First Nations Land east of the 2nd Narrows Bridge in North Vancouver. The development will include approximately 430,000 square feet of retail space. Construction is set to begin in 2006 and to complete in the spring After an extremely busy start to 2005 with completions/occupancies of 2008. 800 - 475 West Georgia Street, Vancouver, B.C. V6B 4M9 Phone: (604) 684-7117 • Fax: (604) 684-1017 Visit Our W ebsite: www .jjb.com/vancouver Website: www.jjb.com/vancouver


GVRD RETAIL YEAR END H I G H L I G H T S South Burnaby Power Centre, Burnaby Anthem Properties has begun construction at Marine Way and Byrne Road on 330,000 square feet of large format retail development. Tenants include: Winners, Staples, Linens N’ Things, Petcetera and Michael’s. Completion is set for spring 2006.

2005

The Pier, North Vancouver Pinnacle International will be constructing approximately 50,000 square feet of retail space and 60,000 square feet of office space through four phases at Lower Lonsdale. Aside from a community of homes, amenities to the area will include; a hotel, conference centre, gallery, public parks, 700 foot waterfront pier and Seabus access to Downtown Vancouver.

Marine Way Market, Burnaby Westbank Projects is developing a 250,000 square foot grocery anchored project at SW Marine Drive and Byrne Road. Tenants include: LOOKING AHEAD Save on Foods, London Drugs and Canadian Tire. Completion is B.C.’s economy is expected to remain strong with consumer demand anticipated for fall 2006. consistently increasing for housing goods and services in the retail sector. The Central Credit Union of BC foresees robust growth in 2006 as North Road Centre, North Burnaby Ledingham McAllister will begin construction on their mixed use B.C.’s employment rate is expected to further improve and our job market development at North Road and Cameron Street in Burnaby in 2006. is anticipated to be the “best in years” thanks to natural resources, The 100,000 square feet of retail space will be tenanted by a Fitness construction and most recently, transportation. As interest rates remain concept, drug store and a Save on Foods. Completion for the retail low and capital readily available, retail assets will continue to draw strong interest from tenants and prospective purchasers. High consumer phase in expected in the fall of 2006. confidence, stemming from Government participation in infrastructure projects, the 2010 Winter Olympics and our strong housing market, creates a positive outlook for Greater Vancouver’s real estate market.

SALE TRANSACTIONS JULY-DEC 2005: Property Name Street Name Municipality Building Size Riverport Entertainment & Business Park Triangle Road & Entertainment Blvd Richmond 400,635 Westin Bayshore Resort & Marina 1601 Bayshore Drive Vancouver 510 Rooms Crowne Plaza Hotel Georgia 801 Georgia Street Vancouver 375,000 Best Buy/Canadian Tire 2290 Cambie Street Vancouver 148,989 Ackroyd Plaza 5880 No. 3 Road Richmond 106,382 Langley Crossing Shopping Centre Langley 388,000 Terra Nova Village Westminster Highway Richmond 73,170 Granville & Cordova 320 Granville Street Vancouver 492 stalls Vancouver Centre Travelodge 1304 Howe Street Vancouver 66 rooms Pattison Dealership 15340 104th Avenue Surrey 19,900 Denny's 5605-5665 Kingsway Burnaby 33,428 Carleton Square 4161-4191Hastings Street Burnaby 28,641 Golden Meadows Plaza 12059 Harris Road Pitt Meadows 21,400 Bellevue Centre 1507-1517 Bellevue Avenue West Vancouver 9,505 Shoe Warehouse bldg 2935 Granville Street Vancouver 6,300 3000 Commercial Drive 3000 Commercial Drive Vancouver 27,400 750-790 West 6th Avenue 750-790 West 6th Avenue Vancouver 9,000

Total Price $84,950,000 $77,987,445 $65,000,000 $44,500,000 $33,000,000 $29,100,000 $24,100,000 $19,975,810 $18,600,000 $7,422,680 $6,500,000 $5,650,000 $5,000,000 $4,800,000 $4,500,000 $4,500,000 $3,600,000

Source: Realnet Canada FOR MORE INFORMATION,VANCOUVER PLEASE CONTACT: • Toronto • Calgary • Edmonton • Winnipeg • Montreal • Mississauga • Burlington • Halifax • 800 - 475 West• Ottawa Georgia Street, Vancouver, B.C.• Victoria V6B 4M9 Kingston • Kelowna • London • Markham • Niagara • Regina • Saskatoon • Waterloo Cynthia Martin Director ofAllResearch Phone: (604) 684-7117 Fax: (604) 684-1017 information has been obtained from sources considered to be accurate•but is not guaranteed and is subject to con604-630-3405 ditions at the time of any transaction taking place. Properties are submitted to prior sale or lease, withdrawal or Visit Our W ebsite:subject www .jjb.com/vancouver Website: www.jjb.com/vancouver changes without notice. cynthia.martin@jjb.com VANCOUVER • Toronto • Calgary • Edmonton • Winnipeg • Montreal • Mississauga • Nanaimo • Burlington • Halifax • Kingston • Kelowna • London • Markham • Niagara • Ottawa • Regina • Saskatoon • Waterloo • Victoria All information has been obtained from sources considered to be accurate but is not guaranteed and is subject to conditions at the time of any transaction taking place. Properties are submitted subject to prior sale or lease, withdrawal or changes without notice.


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