regional office · annually over the past four years. growth is forecasted to ease to 2.9% in 2018...

V A N C O U V E R C H A P T E R


G R E A T E R V A N C O U V E R C H A P T E R

M E T R O V A N C O U V E R C H A P T E R

PROMOTIONAL SUPPLEMENT

NAIOP Vancouver Chapter is pleased to present the 2018 findings of its Office Development “Report Card”

Fall 2018

Regional

OFFICE Cost of Business Survey

18TH ANNUAL

In the 19th year of its publication, the NAIOP Cost of Business Survey

has quantified development costs and processing times for 20 Metro Vancouver municipalities to provide its membership and the business community as a whole with a reference tool when considering development areas since 2000. The survey is also intended to be utilized by the municipalities, whose active participation makes this survey possible, as a gauge for their own development costs and approval processes compared to those of their neighbours.

New for 2018, NAIOP has incorporated a number of changes to better deliver this information:

n Condensed municipal fee table created for better display

n Different reporting of timing to more accurately reflect developer experiences

n Average annual inflation tracked back to 2006 (previously 2000) so all 20 municipalities are included

2018 NAIOP Awards for Municipal Excellence NAIOP will be acknowledging four municipalities that have excelled in creating environments positive to business creation. The three categories of awards are:

Most ImprovedThe most improved compared to previous survey results

Most Fiscally ResponsibleCost increases kept in line with overall inflation.

Most Business-FriendlyImplementation of policies to support the creation of new job spaces

The 2018 winners are:

Most Improved City of Port Coquitlam demonstrated a 70% reduction in fees from 2016 to 2018, more than double the next closest municipality in terms of reduction over that time period.

Most Fiscally Responsible City of Surrey has managed to keep an annual average inflation rate of 1.66% from 2006 to 2018

Most Business-Friendly City of Burnaby for their support of density and mixed use office developments.

Continued on next page

Index2018 Highlights . . . . . . . . . . . . . . . . 1-2

Office Market Update . . . . . . . . . . . . . . 3

Office Development Scenario . . . . . . 4-5

2018 Municipal Rates . . . . . . . . . . . . 6-7

Timing . . . . . . . . . . . . . . . . . . . . . . . . . 8

Permit Data . . . . . . . . . . . . . . . . . . . . . . 9

Mill Rates . . . . . . . . . . . . . . . . . . . .10-11

NAIOP Development Features . . . . . . . 12

Commercial Real Estate Awards . . . . . 13

Municipal Update . . . . . . . . . . . . . . . . 14

Office Trend:

WELL Building Standard . . . . . . . . . . . 15

400 West Georgia by Westbank

2 Regional Office Cost of Business Survey — Fall 2018




King George Hub by PCI Developments

2018 Highlights

ACKNOWLEDGMENT:

NAIOP would like to acknowledge and thank all of the municipalities that took part in this year’s Cost of Business Survey. Participation is voluntary and the time expended to respond to it can be significant for planning departments. Development in any jurisdiction is a partnership between business and the community. NAIOP is pleased to be in a position to work, on behalf of our members, with all of the Metro Vancouver jurisdictions that participated in the publication of this information for the business community.

NAIOP would also like to acknowledge the contributions of Avison Young for the office market update.

If you have any questions on the data, please contact the Cost of Business Survey Committee at [email protected].

3232

Regional Office Cost of Business Survey — Fall 2018 3




Economic Overview The growth of the B.C. economy is expected to slow after expanding by more than 3.5% annually over the past four years. Growth is forecasted to ease to 2.9% in 2018 and average 2.7% in 2019 to 2020, before decreasing to 2.3% in 2021. High levels of construction have resulted in residential development remaining a growth driver in 2018; however, the recent changes in mortgage lending policy and provincial housing measures have contributed to a decrease in demand that will slow residential investment during the next couple of years. A normalization trend is forecasted for interest rates as the Bank of Canada is expected to hike rates multiple times in 2019.Source: Central 1, Economic Analysis of British Columbia, August 2018

Market Overview While the development pipeline in Metro Vancouver has typically maintained a relatively steady stream of new supply, a gap in both new product delivery and availability has formed in key markets such as downtown, Burnaby, Richmond and, to a lesser extent, Surrey and Vancouver-Broadway.

There is virtually no new space for lease being delivered downtown until 2020. However, the two buildings set for 2020, 402 Dunsmuir Street (100% preleased by Amazon) and 400 West Georgia (67% preleased by Deloitte Canada and Spaces), are substantially preleased. In reality, meaningful amounts of new supply downtown will not be available until 2021.

Burnaby, the second-largest office market in Metro Vancouver, has only a single project completing in the back half of 2018 with no other deliveries of office space until 2022.

Richmond, which has not built any new office space for lease in more than a decade, will have to wait until the end of 2020 for new supply in the form of the ViewStar development.

Only two projects are set to deliver in Surrey by 2020, one of which is currently 45% preleased and the other may be sold as strata office.

Market Outlook Demand for office space throughout Metro Vancouver has rapidly highlighted shortfalls of new supply in multiple markets as regional vacancy tightened to its lowest point since 2012 and is likely to approach the record-low vacancies of 2007-08 within 18 months.

With vacancy set to tighten due to a number of significant opportunities during the remainder of 2018 in the downtown, Vancouver-Broadway and New Westminster markets, annual absorption is expected to be among the strongest since the last development wave crested in 2015. Vacancy in all these markets as well as Burnaby, Richmond and Surrey is expected to continue tightening as deal velocity is likely to slow in response to fewer leasing opportunities. While overall, the office market in most Metro Vancouver markets is expected to remain strong, there are certain municipalities that are contemplating requiring developers to provide a larger percentage of office space, as part of mixed use developments, without consideration for demand in these markets. While all municipalities have the desire to create more job space, in reality the demand for office space is limited in certain suburban markets.

Office Market Update

Metro Vancouver Vacancy & Absorption Trends

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

–2014 2015 2016 2017 2018

(mid-year)

Vaca

ncy

rate

Abs

orpt

ion

rate

(sf)

9.4% 10% 9.7%

8%

7.2%

92,870

1,334,604

856,868

1,223,656

764,911

Vacancy Absorption

2018 Notable Office Sales

Submarket Building Buyer Seller Size (SF) Price Price PSF

Downtown Vancouver 800 Burrard Street Crestpoint Real Estate Investments CPP Investment Board/Oxford Properties 222,238 $277,000,000 $1,246

Burnaby Willingdon Park Spear Street Capital Healthcare of Ontario Pension Plan 488,811 $179,400,000 $367

Downtown Vancouver Telus House GWL Avigilon Corp. 134,967 $107,500,000 $796

Burnaby Canada Way Business Park North and South

CC&L Private Capital and Public Sector Pension Investment Board

Investors Group 327,964 $106,500,000 $325

Burnaby Production Court Pacific Reach Properties Artis REIT 297,727 $100,500,000 $338

East Vancouver Containers – Phase 2 Concert Properties Rize Alliance Properties 128,404 $92,000,000 $716

Downtown Vancouver Shorehill Building Hollyburn Properties Ltd. Shorehill Investments Ltd. 83,068 $80,000,000 $963

2018 Notable Office Leases

Submarket Tenant Building Size (SF)

Downtown Vancouver Amazon The Post 416,000

Burnaby BC Liquor Distribution Branch Discovery Green 146,570

Downtown Vancouver Spaces 400 W. Georgia 120,390

Downtown Vancouver Deloitte 400 W. Georgia 117,000

Downtown Vancouver Kabam Vancouver Centre II 105,000

Downtown Vancouver Amazon The Exchange 90,000

Downtown Vancouver Blake, Cassels & Graydon LLP The Stack 80,000

Downtown Vancouver WeWork Grant Thornton Place 75,600

Downtown Vancouver DLA Piper The Stack 67,000

Downtown Vancouver EY Canada The Stack 60,000





Office Development Scenario

This year’s survey was based on an office development scenario, the construction of a two-storey, 50,000-square-foot, Class B office building on two acres of

land. Municipalities received a “development proposal” where rezoning, subdivision, development permit and building permit approvals would be required. They then reported on development costs and approval times according to their usual standards and processes.

Twenty municipalities were sent the survey representing a real-life situation in a mock development scenario, intending for them to run this request through their approval timeline and assess overall cost requirements.

This level playing field provides meaningful comparison to actual building and development permit requests made by industry, and holds municipalities accountable for delivering on promises to efficiently process development opportunities in their respective jurisdictions.

All municipalities were provided an opportunity to review and comment on the results prior to publication. Please note that the survey results are based solely on the responses of the municipalities. The Metro Vancouver sewer and drainage charge has been broken out as a separate item for comparative purposes but has not been included in totals due to regional variation in methods for calculating these items.

Development context: • Located within an area designated in the municipality’s Official Community Plan

and Metro Vancouver’s Regional Growth Strategy as suitable for office and commercial use

• Located within a DP area• Located within a DCC/DCL-applicable area• 295 feet (90 metres) of lot frontage on a 15-year-old dedicated municipal roadway and

interior parcel lines with adjacent lots after subdivision• Site is assumed to have been cleared of all trees and filled to a suitable elevation

Building assumptions: • Complies with all design bylaw regulations within the governing jurisdiction• The application and its content have been prepared using the services of a registered

architect, landscape architect and professional engineer• Fully sprinklered throughout





Office Development ScenarioDevelopment requirements: • Rezoning to general office zoning as per

jurisdiction, assuming proposed density conforms to zoning bylaw

• Land subdivision to create one parcel of two net acres less road and other dedications and professional engineer

• All required permits and fees

Construction costs: • $235 per square foot*/$11,750,000

($210 per sq. ft. for building + $25 per sq. ft. for site improvements)

• $600,000 for off-site works (street and drainage improvements – not DCC rebatable)

* Source: Altus Group, 2018 Canadian Cost Guide

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2018 Municipal Rates

A number of important updates have occurred in this year’s survey, including

the way the data is reported. Several columns have been combined as they relate to simplify and make the table easier to read. Another key update is an increase in the estimated construction cost for the scenario to $11,750,000 to more accurately reflect rising construction costs. As a result, this update includes fee increases wherever a fee is calculated as a percentage of construction cost. To standardize this impact, a benchmark has been set as outlined below. The deltas of all reported fees have been adjusted accordingly:n Increases greater than 35% from 2016 are

highlighted orangen Decreases greater than 20% from 2016 are

highlighted green

Six municipalities reported significant overall cost increases, the highest being the City of Port Moody at 84% higher since the last office survey was conducted in 2016. This is predominantly due to its development and building permit fees more than doubling in the last two years. Not far behind is the District of North Vancouver at 72%, whose DCC fee went from $274,000

to $565,900 since 2016. All municipalities reported increases greater than 35% in their development and building permit fees, the average increase being 67% over the span of two years.

Only two municipalities, the City of Port Coquitlam and City of Surrey, reported significant overall cost decreases. In both cases, their DCC fees were reduced, by 82% and 47%, respectively.

Average Development Cost Proportions

E

A B

C

D

B. Rezoning & Subdivision Application Fees – 3%

A. Sewer & Water Connection Fees – 8%

C. Development & Building Permit Fees – 23%

D. Administration, Processing & Sprinkler Inspection Fees – 4%

E. DCC/DCL Fee – 62%

Municipal Fee Comparison

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$-

City of Maple Ridge

City of Burnaby

City of Port M

oody

City of Pitt M

eadows

City of Delta

City of Port C

oquitlam

City of Surre

y

City of New W

estminster

Township of Langley

City of Chilliw

ack

District o

f West V

ancouver

City of Coquitla

m

City of White

Rock

City of North

Vancouver

District o

f Mission

City of Langley

City of Abbotsford

City of Richmond

District o

f North

Vancouver

City of Vancouver

2016 2018To

tal F

ees





2016

Ran

k

2018

Ran

k

Mun

icip

alit

y

Rezo

ning

&

Sub

divi

sion

A

pplic

atio

n Fe

es

Dev

elop

men

t &

Bui

ldin

g Pe

rmit

Fee

s

Adm

inis

trat

ion,

Pr

oces

sing

&

Spr

inkl

er

Insp

ecti

on F

ees

DCC

/DCL

Fee

Sew

er &

Wat

er

Conn

ecti

on

Fees

Regi

onal

Se

wer

&

Dra

inag

e Fe

es

Taxe

s

Tota

l (E

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ding

M

etro

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Perc

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201

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200

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Ann

ual A

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Infla

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Rat

e

1 1 City of Maple Ridge1 $8,012 $33,821 $24,000 $43,781 $31,000 $133,500 $121,560 $140,614 -0.10% -21% -1.92%

3 2 City of Burnaby $17,623 $158,545 $2,329 $0 $64,401 $133,500 $144,215 $242,898 38.30% 115% 6.60%

2 3 City of Port Moody $12,218 $177,018 $24,697 $55,165 $15,000 $133,500 $85,529 $284,098 80.8% 93% 5.79%

4 4 City of Pitt Meadows2 $10,675 $122,160 $0 $108,229 $74,000 $133,500 $110,881 $315,064 27.80% 79% 5.00%

7 5 City of Delta $4,162 $88,245 $24,620 $132,290 $85,000 $133,500 $96,319 $334,316 5.90% 49% 3.37%

20 6 City of Port Coquitlam $12,044 $87,720 $24,698 $187,519 $28,000 $133,500 $113,163 $339,980 -70.20% 34% 2.48%

17 7 City of Surrey3 $8,572 $95,533 $7,774 $211,864 $23,994 $133,500 $73,522 $347,737 -31.60% 22% 1.66%

5 8 City of New Westminster4 $4,591 $104,381 $24,964 $257,000 $0 $133,500 $196,451 $390,935 47.10% 265% 11.40%

8 9 Township of Langley $11,760 $94,447 $28,625 $258,156 $0 $133,500 $97,395 $392,988 12.80% 16% 1.21%

6 10 City of Chilliwack5 $3,265 $87,327 $9,000 $216,735 $80,000 $0 $106,594 $396,327 46.80% 173% 8.72%

11 11 District of West Vancouver6 $14,000 $118,992 $24,905 $260,175 $0 $60,000 $108,690 $418,072 0.30% 33% 2.38%

9 12 City of Coquitlam7 $12,429 $104,147 $23,575 $283,345 $0 $133,500 $109,499 $423,496 18.90% 40% 2.87%

10 13 City of White Rock $5,600 $121,333 $2,614 $297,884 $12,000 $133,500 $71,154 $439,431 11.90% 225% 10.33%

14 14 City of North Vancouver $6,930 $95,481 $40,856 $269,549 $65,000 $60,000 $146,374 $477,816 1.30% 29% 2.11%

12 15 District of Mission $6,592 $75,386 $31,301 $384,792 $0 $0 $159,347 $498,071 4.70% 75% 4.80%

15 16 City of Langley $7,909 $104,063 $27,790 $341,650 $32,000 $133,500 $94,817 $513,412 6.10% 66% 4.32%

16 17 City of Abbotsford $7,625 $66,823 $24,575 $423,736 $46,360 $0 $124,735 $569,120 13.30% 66% 4.34%

18 18 City of Richmond8 $5,322 $110,918 $24,000 $566,500 $22,600 $52,500 $59,705 $729,340 7.00% 160% 8.29%

13 19 District of North Vancouver $9,495 $145,438 $27,446 $565,900 $50,469 $60,000 $69,150 $798,749 71.70% 190% 9.27%

19 20 City of Vancouver $83,574 $65,747 $1,411 $695,500 $74,060 $46,500 $62,123 $920,292 6.30% 110% 8.67%

Increase greater than 35% from 2016 survey Decrease greater than 20% from 2016 survey


Note: where sewer and water hookup fees are not reported, the developer’s cost to install the hookups is required. Other potential development costs include letters of credit, landscape/street improvements, amenity contributions and other fees. Please consult each municipality for more information on additional requirements.

1 Development permit fee covers the sprinkler inspection fee1 Building permit fee based on application of Employment Lands Incentive Program1 DCC fee based on Town Centre Commercial DCC rate with Employment

Lands Industrial Incentive Program applied (50% up to $50,000).2 Administration, processing and sprinkler inspection fees

included in the application and permit fees3 DCC rates vary for development in Campbell Heights and Highway 99 Corridor.

4 DCC fee based on Mainland area DCC rate; Queensborough area DCC fee would be $648,000

5 Sprinkler inspection fee included in building permit fee6 Rezoning application fee covers development permit fee7 Sewer and water connection fees included in administration and processing fees8 Floor area exemptions may be available on DCC fee depending on specific development






2018 Rank Municipality Pre-Application Design Review (days)

Rezoning Process (days)

Development Permit Process (days)

Subdivision Approval (days)

Building Permit (days)

2018 Approval Timing (days)

2016 Approval Timing (days)

Percentage Change

1 City of Chilliwack N/A 60-120 Concurrent Concurrent Concurrent 120 90 33%

1 Township of Langley 30 60-120 Concurrent Concurrent Concurrent 120 120 0%

1 City of Maple Ridge N/A 60-120 Concurrent Concurrent Concurrent 120 150 -20%

1 District of Mission 30 60-120 Concurrent Concurrent Concurrent 120 300 -60%

5 City of Langley N/A 60-120 Concurrent Concurrent <60 180 120 50%

5 City of Delta N/A 60-120 Concurrent Concurrent <60 180 150 20%

5 City of Richmond N/A 120-180 Concurrent Concurrent Concurrent 180 150 20%

5 City of Abbotsford 14-21 120-180 Concurrent Concurrent Concurrent 180 210 -14%

5 City of Port Coquitlam N/A 120-180 Concurrent Concurrent Concurrent 180 330 -45%

5 City of New Westminster 42 120-180 Concurrent Concurrent Concurrent 180 360 -50%

11 City of Port Moody 60 180-240 Concurrent Concurrent Concurrent 240 >180 33%

11 City of White Rock 14 180-240 Concurrent Concurrent Concurrent 240 240 0%

11 City of Burnaby N/A 180-240 Concurrent Concurrent Concurrent 240 >330 -27%

11 City of Pitt Meadows N/A 180-240 Concurrent Concurrent Concurrent 240 >210 14%

15 City of Surrey 28 120-180 Concurrent Concurrent 60-120 300 210 43%

16 City of Vancouver N/A 240-365 Concurrent Concurrent Concurrent 365 >180 102%

16 District of North Vancouver 90 240-365 Concurrent Concurrent Concurrent 365 240 52%

18 District of West Vancouver 60 180-240 Concurrent Concurrent 120-180 420 270 56%

18 City of North Vancouver 14-21 180-240 Concurrent 60-120 <60 420 360 17%

20 City of Coquitlam 90 365+ Concurrent Concurrent 60-120 485 210 131%

Timing

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Increase from 2016 survey Decrease from 2016 survey





Municipality Total Construction Value Total Number of Building Permits

District of Mission $772,000 3

City of North Vancouver $21,535,000 20

District of West Vancouver $0 0

City of Delta1 $19,781,343 53

Township of Langley $17,435,000 4

City of Chilliwack $2,741,000 6

City of White Rock $0 0

City of Surrey2 $56,338,097 6

City of Maple Ridge $0 6

City of New Westminster $2,055,380 27

City of Coquitlam $27,099,726 5

District of North Vancouver2 $5,095,350 11

City of Richmond $16,771,963 155

City of Pitt Meadows $0 0

City of Port Coquitlam $470,500 2

City of Port Moody $3,218,540 21

City of Langley1 $9,596,306 84

City of Burnaby $12,770,000 6

City of Abbotsford2 $13,282,100 21

City of Vancouver $73,623,965 54

¹ Values include commercial, commercial/mixed-use and institutional for new buildings and additions² Values include all commercial, commercial/mixed-use and institutional for new buildings only (no additions or renovations)

Building Permits Issued for New and Major Renovation of Office Buildings in 2017

Permit DataA cross the Metro Vancouver region,

development activity has been steady with a significant volume of building permits being issued. The City of Richmond leads this activity with 155 building permits issued for new and major renovation of office buildings in 2017. The City of Delta and the City of Langley issued large numbers of building permits as well, at 53 and 84, respectively. It is important to note, however, these two municipalities submitted permit volumes for all commercial, not just office. In total, these three municipalities have approved over $46 million in commercial building activity.

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Mill RatesI n previous editions, this publication has addressed the

extraordinary gap between residential and commercial mill rates, namely how the latter places a significantly higher tax burden on business owners over residents. Since 2016, municipalities have reported an overall decrease in Class 6 commercial mill rates by approximately 28.29%, yet the overall commercial-to-residential mill rate ratio has increased by 6.25%.

Higher and lower mill rates will have an overall effect on local communities, neighbourhoods and businesses. Lower municipal tax rates have been shown to effectively contribute to business sustainability and increase opportunities for residents such as employment opportunities. Conversely, higher business tax rates may negatively impact a business’ profitability and force business owners to pick up and move operations to a lower-tax municipality.

For 2018, the five municipalities with the lowest commercial-to-residential property tax burden are:n City of Surreyn City of Chilliwackn City of White Rockn District of West Vancouvern City of Port Moody

The five municipalities with the highest commercial-to-residential property tax burden are:n City of Coquitlamn City of New Westminstern City of Vancouvern City of Burnabyn District of Mission

2016 Rank

2018 Rank

Municipality 2018 Commercial Mill Rate (Class 6)

2018 Residential Mill Rate (Class 1)

Commercial-to-Residential Tax Ratio

8 1 City of Surrey 1.806 1.806 1.000

1 2 City of Chilliwack 8.093 3.368 2.403

2 3 City of White Rock 6.013 2.263 2.657

7 4 District of West Vancouver 3.410 1.234 2.765

5 5 City of Port Moody 6.925 2.473 2.801

5 6 City of Abbotsford 10.051 3.357 2.995

4 7 City of Langley 7.678 2.485 3.089

14 8 City of Richmond 4.834 1.515 3.191

6 9 City of Maple Ridge 9.843 2.996 3.285

12 10 Corporation of Delta 7.260 2.157 3.366

9 11 City of Pitt Meadows 8.978 2.642 3.398

17 12 District of North Vancouver 5.599 1.593 3.516

10 13 Township of Langley 7.886 2.104 3.749

13 14 City of Port Coquitlam 9.163 2.440 3.755

15 15 City of North Vancouver 6.176 1.605 3.849

11 16 District of Mission 12.903 3.223 4.004

18 17 City of Burnaby 4.200 1.040 4.040

19 18 City of Vancouver 5.030 1.244 4.044

16 19 City of New Westminster 10.42779 2.507 4.160

20 20 City of Coquitlam 8.5844 1.958 4.384

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Mill RatesCommercial-to-Residential Tax Ratio

2016 2018

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

City of Surre

y

City of Chilliw

ack

City of White

Rock

District o

f West V

ancouver

City of Port M

oody

City of Abbotsford

City of Langley

City of Richmond

City of Maple Ridge

Corporation of D

elta

City of Pitt M

eadows

District o

f North

Vancouver

Township of Langley

City of Port C

oquitlam

City of North

Vancouver

District o

f Mission

City of Burnaby

City of Vancouver

City of New Westm

inster

City of Coquitla

m





NAIOP Development Features

400 West Georgia by Westbank

King George Hub by PCI DevelopmentsProject DescriptionKing George Hub is PCI Development’s multi-phase, transit-oriented development located in Surrey City Centre at King George Boulevard and Fraser Highway adjacent to the Expo Line’s first SkyTrain Station and two additional future transit stations. The first phase includes the already completed 185,000-square-foot Coast Capital Savings Help Headquarters, housing over 700 employees and significantly improving the area. The second phase of King George Hub is now under construction to be completed in Q4 2021 and includes:n 738 residential units in two 39 and 28-storey towers which sold out

in fall 2017;n 160,000-square-foot 15-storey LEED® Gold Class A Office Tower

with major tenants to be announced in 2019;n 100,000-square-foot of commercial retail space integrated with

public plazas to create a “High Street” that promotes pedestrian flow through the site in connection with transit and Surrey Memorial Hospital. Retail announcements to follow in 2019.

Future phases include additional retail and over 1,500 residential units in 4 towers.

Project Description400 West Georgia by Westbank will provide 25 storeys of office space, ground-level retail and iconic architecture in Vancouver’s downtown core connecting the urban fabric between the Central Library and Telus Garden. The project includes 375,000 square feet of office and retail space anticipated to house 1,500 to 1,700 new jobs perfectly situated near rapid transit infrastructure. Deloitte is anchor tenant in the building occupying 10 floors at the top of the tower, and Spaces co-working group is taking eight lower office floors. The project is now under construction and is anticipated to be completed in Q4 2020.





Commercial Real Estate Awards of Excellence gala salutes industry standoutsFour hundred delegates from the business community attended the NAIOP Vancouver and Business in Vancouver Commercial Real Estate Awards of Excellence gala May 17 at the Fairmont Waterfront Hotel. The awards recognized excellence in the commercial real

estate industry within the Metro Vancouver area for 2016-17. Finalists for each category were previously announced, with the winners announced live at the gala MCed by Rob Macdonald of Macdonald Development Corp. •

PRESENTED BY:

Commercial Real Estate

Awards of Excellence

THE 2018 COMMERCIAL REAL ESTATE AWARDS OF EXCELLENCE WINNERS ARE:Best Office Development: Manulife – 980 Howe

Best Industrial Lease: Loblaw Properties West Inc., T&T Supermarket

Best Developing Leader: Ted Mildon

Best Industrial Development: Delta Link Business Park

Best Tenant Improvement: 777 Dunsmuir – KPMG Offices

Best Office Lease: Nickel Building

Best Retail: NorthWoods Village

Best Mixed-Use Development: Solo District

Best Investment Transaction: Willingdon Business Park

Judges’ Choice: Parq Vancouver





Municipalities continuously evaluate ways in which existing and new policy can provide

direction to guide and encourage economic growth in communities. The following municipal planning initiatives are underway and could have significant impacts on development opportunities, revitalization and employment intensification:

City of Abbotsford City Centre Plan and Historical Downtown Neighbourhood Plan underway.

City of BurnabyThe Metrotown Downtown Plan was approved in 2017 and requires 25% of floor area within mixed-use sites to be commercial/office uses. When sites are designated as mixed-use and contain existing office space, 100% replacement is required.

City of Chilliwack Ongoing policy and bylaw review to ensure diversification, employment opportunities, revitalization of downtown Chilliwack and job creation in anticipation of continued population increases.

Maple RidgeEmployment Land Investment Incentive Program underway. Additional area planning is anticipated along the Lougheed Corridor and Albion Flats.

City of Pitt MeadowsOfficial Community Plan Review underway.

City of Port CoquitlamCommercial Official Community Plan Policies and Development Permit Areas are under review.

City of RichmondIndustrial Land Intensification Study underway.

District of West VancouverAmbleside Town Centre Plan underway.

Township of LangleyWilliams Neighbourhood Plan underway.

City of VancouverCity Core 2050 and a number of interrelated planning programs focused on creating a shared future vision for the economic, cultural and social heart of the city and region. The interrelated planning programs include a review of Vancouver’s economy and employment lands and the Broadway Corridor Planning Program.

*Most of the above policies are subject to council and/or staff approval.

Municipal Update





We spend approximately 90% of our time indoors. Through measurable

design interventions, environments should be optimized and tested to support health and well-being. The International WELL Building Institute (IWBI) is leading the global movement to transform buildings and communities in ways that help people thrive. IWBI delivers the cutting-edge WELL Building Standard, the first to be focused exclusively on the ways that buildings, and everything in them, can improve our comfort, drive better choices and generally enhance, not compromise, our health and wellness.

Investing in the health and wellness of people has a clear return on investment. A WELL-certified building helps improve health and well-being across 10 concepts of building performance:

Air Establishes requirements in buildings that promote clean air and reduce or minimize the sources of indoor air pollution.

WaterLimits the presence of sediment and water-borne pathogens in water designated for human contact.

Nourishment Promotes the consumption of fruits and vegetables by making them easily accessible to occupants.

LightSupports visual acuity by setting a threshold for adequate light levels and requiring luminance to be balanced within and across indoor spaces.

MovementPromotes movement, physical activity and active living and discourages sedentary behaviours through environmental design strategies, programs and policies.

Thermal ComfortPromotes human productivity and ensures a maximum level of thermal comfort among all building users through improved HVAC system design and control and by meeting individual thermal preferences.

Office Trend: WELL Building Standard

SoundBolsters occupant health and well-being through the identification and mitigation of acoustical comfort parameters that shape occupant experiences in the built environment.

MaterialsReduces human exposure to hazardous building material ingredients through the restriction or elimination of compounds or products known to be toxic and the promotion of safer replacements.

MindPromotes mental health through policy, program and design strategies that seek to address the diverse factors that influence cognitive and emotional well-being.

CommunitySupports access to essential health care, workplace health promotion and accommodations for new parents while establishing an inclusive, integrated community.

There are currently over 1,000 WELL projects encompassing 200 million square feet across 39 countries. To start a project or join the healthy building movement, visit wellcertified.com.

Investing in the health and wellness of people has a clear return on investment

Our Business is Your BusinessKeep your finger on the pulse of business in Vancouver

Subscribe at biv.com/subscribe or call 604.608.5147

• Legislative voice with municipal and provincial officials—through our Development Issues and Government Affairs Committee.

• Local networking opportunities through monthly breakfast speaker series and events.

• Mentorship Program and special events for Developing Leaders, under 35 years of age.

• A biennial Commercial Real Estate Awards of Excellence Gala, to recognize the best in the industry.

• Industry and market information—through breakfast speakers, special publications and the chapter website, www.naiopvcr.com

• Access to the NAIOP Canada Sustainability Blog’s wide collection of articles, reports, case studies and other sustainability-related works

• The Annual Cost of Business Report—which reviews the effectiveness of local municipalities in addressing office and industrial development projects.

• Educational opportunities—through seminars, webinars and symposiums, including the annual Developers’ Symposium.

• Biweekly e-bulletins which keep the membership up to date on industry news and events.

• Active online community, allowing members to join the conversation, grow their networks, and obtain the latest commercial real estate news at @NAIOPVancouver & NAIOP Vancouver Group (LinkedIn)

For more information on NAIOP – Vancouver Chapter or any of its events, please visit the website at www.naiopvcr.com, email [email protected] or call 604.601.5106

Back, left to right: Anthio Yuen, Developing Leaders Chair, GWL Realty Advisors Inc., Marvin Haasen, Development Issues & Government Relations Co-Chair, Madison Pacific Properties Inc., Jarvis Rouillard, Past President, PCI Developments, Steffan Smith, President (Jan-Jun '18), GWL Realty Advisors Inc., Andrew Laurie, Membership Chair, JLL, Dan Jordan, Breakfast Committee Co-Chair, Colliers International, Tony Tse, Treasurer, KPMG, Don Fairgrieve-Park, Development Issues & Government Relations Co-Chair, QuadReal Property Group, LP., Pedro Tavares, Development Issues & Government Relations Co-Chair, Altus Group Ltd.

Front, left to right: Carolina Miranda, Administrator, NAIOP Vancouver, Stephen Smith, Breakfast Committee Co-Chair, Manulife Real Estate, Darlene Hyde, BC Real Estate Association, Janay Koldingnes, Events Committee Chair, Dialog Design

Missing: Ryan Berlin, Communications Chair, Rennie Group, Beth Berry, Interim President, Beedie, Jason Kiselbach, Member at Large, CBRE Limited Brokerage Services, Chris MacCauley, National Director, CBRE Limited, Conrad Rego, Legal Counsel, McCarthy Tetrault LLP

Board of Directors 2018

Why become a member of NAIOP? NAIOP Vancouver represents commercial real estate developers, owners and investors of office, industrial, retail and mixed-use properties. It provides strong advocacy, education and business opportunities and connects its members through a powerful North American network.

NAIOP truly reflects the pulse of the commercial/industrial/development industry in Greater Vancouver. It provides its diverse membership with a valuable network of industry professionals, a powerful forum to exchange ideas, economic information and market news, and a collective voice to lobby for regulatory debate and change. NAIOP works for members year round to enhance market knowledge and exposure, to help streamline the industry, and provide a healthy sprinkling of camaraderie and fun. The Vancouver Chapter of NAIOP is one of 51 chapters within an extensive network that represents the interests of developers and owners of industrial, office and related commercial real estate throughout North America. NAIOP’s Award Winning annual Cost of Business Survey provides a benchmark for performance of over 21 municipalities in the Metro Vancouver area with respect to their development costs and ease of doing business.

regional office · annually over the past four years. growth is forecasted to ease to 2.9% in 2018...

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