NAIOP Report Fall 2018 by GLACIER MEDIA DIGITAL LIMITED PARTNERSHIP dba BUSINESS IN VANCOUVER

PROMOTIONAL SUPPLEMENT

VA N COU V E R C H A P T E R 18 TH ANNUAL

Regional

METRO VANCOUVER

CHAPTER

OFFICE

Cost of Business Survey Fall 2018

NAIOP Vancouver Chapter is pleased to present the 2018 findings of its Office Development “Report Card” 400 West Georgia by Westbank

VANCOUVER

CHAPTER

GREATER VANCOUVER

n 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: ondensed municipal fee table created C for better display n Increased construction cost estimate for development scenario to more accurately n

CHAPTER

reflect developer experiences 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 three municipalities that have excelled in creating environments positive to business creation. The three categories of awards are: Most Improved The most improved compared to previous survey results Most Fiscally Responsible Cost increases kept in line with overall inflation. Most Business-Friendly Implementation 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.

Index 2018 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:

Continued on next page

WELL Building Standard ��15

Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

CHAPTER

2018 Highlights VANCOUVER

CHAPTER

King George Hub by PCI Developments

GREATER VANCOUVER

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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 statistics. If you have any questions on the data, please contact the Cost of Business Survey Committee at cobs@naiopvcr.com.

Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

CHAPTER

Office Market Update 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 leaseV AinN more a Cdecade, C O U V than ER HAPTER 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. GREATER VANCOUVER

Metro Vancouver Vacancy & Absorption Trends 1,600,000

12.0%

2018 Notable Office Leases 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

10.0% Vacancy rate

Submarket

CHAPTER

9.4%

10%

9.7%

7.2% 1,223,656

1,334,604

8.0%

1,200,000

1,000,000

856,868

6.0%

1,400,000

800,000 764,911

4.0%

600,000 400,000

2.0% 0.0%

Absorption rate (sf)

Economic Overview

200,000 92,870

2014

2015

2016

Vacancy

2017 Absorption

2018 (mid-year)

–

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

METRO VANCOUVER

Regional Office Cost of Business Survey — Fall 2018

CHAPTER

Office Development Scenario T his year’s survey on an office development scenario, the construction C H Awas P T Ebased R 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. VANCOUVER

GREATER VANCOUVER

CHAPTER

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

Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

Development requirements:

VANCOUVER

CHAPTER

• 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 • A ll required permits and fees GREATER VANCOUVER

CHAPTER

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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METRO VANCOUVER

Regional Office Cost of Business Survey — Fall 2018

CHAPTER

2018 Municipal Rates number of important updates have CHAPTER 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 orange n 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 VANCOUVER

GREATER VANCOUVER

CHAPTER

Municipal Fee Comparison $1,200,000

2016

2018

$1,000,000 Total Fees

$800,000 $600,000 $400,000 $200,000 $-

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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.

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Average Development Cost Proportions A. Sewer & Water Connection Fees – 8%

B. Rezoning & Subdivision Application Fees – 3%

C. Development & Building Permit Fees – 23% D. A dministration, Processing & Sprinkler Inspection Fees – 4% E. DCC/DCL Fee – 62%

E D

Regional Office Cost of Business Survey â&#x20AC;&#x201D; Fall 2018

METRO VANCOUVER

CHAPTER

2018 Municipal Rates Municipality

Development & Building Permit Fees

Administration, Processing & Sprinkler Inspection Fees

DCC/DCL Fee

Sewer & Water Connection Fees

Regional Sewer & Drainage Fees

Taxes

Total (Excluding Metro Regional Charges & Taxes)

Percentage Change from 2016

Percentage Change from 2006

Equivalent Annual Average Inflation Rate

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%

City of Burnaby

$17,623

$158,545

$2,329

$64,401

$133,500

$144,215

$242,898

38.30%

115%

6.60%

City of Port Moody

$12,218

$177,018

$24,697

$55,165

$15,000

$133,500

$85,529

$284,098

80.8%

GREATER 93%

City of Pitt Meadows

$10,675

$122,160

$108,229

$74,000

$133,500

$110,881

$315,064

27.80%

79%

5.00%

City of Delta

$4,162

$88,245

$24,620

$132,290

$85,000

$133,500

$96,319

$334,316

5.90%

49%

3.37%

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%

City of Surrey3

$8,572

$95,533

$7,774

$211,864

$23,994

$133,500

$73,522

$347,737

-31.60%

22%

1.66%

City of New Westminster

$4,591

$104,381

$24,964

$257,000

$133,500

$196,451

$390,935

47.10%

265%

11.40%

Township of Langley

$11,760

$94,447

$28,625

$258,156

$133,500

$97,395

$392,988

12.80%

16%

1.21%

City of Chilliwack

$3,265

$87,327

$9,000

$216,735

$80,000

$106,594

$396,327

46.80%

173%

8.72%

District of West Vancouver6 $14,000

$118,992

$24,905

$260,175

$60,000

$108,690

$418,072

0.30%

33%

2.38%

City of Coquitlam7

$12,429

$104,147

$23,575

$283,345

$133,500

$109,499

$423,496

18.90%

40%

2.87%

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%

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%

District of Mission

$6,592

$75,386

$31,301

$384,792

$159,347

$498,071

4.70%

75%

4.80%

City of Langley

$7,909

$104,063

$27,790

$341,650

$32,000

$133,500

$94,817

$513,412

6.10%

66%

4.32%

City of Abbotsford

$7,625

$66,823

$24,575

$423,736

$46,360

$124,735

$569,120

13.30%

66%

4.34%

City of Richmond

$5,322

$110,918

$24,000

$566,500

$22,600

$52,500

$59,705

$729,340

7.00%

160%

8.29%

$9,495

$145,438

$27,446

$565,900

$50,469

$60,000

$69,150

$798,749

71.70%

190%

9.27%

District of North Vancouver City of Vancouver

$83,574

$65,747

$1,411

$695,500

$74,060

$46,500

$62,123

$920,292

6.30%

110%

8.67%

Rezoning & Subdivision Application Fees

2018 Rank

CHAPTER

2016 Rank

VANCOUVER

Increase greater than 35% from 2016 survey

5.79%

VANCOUVER

CHAPTER

Decrease greater than 20% from 2016 survey

Note: where sewer and water hookup fees are not reported, the developerâ&#x20AC;&#x2122;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 fee 1 Building permit fee based on application of Employment Lands Incentive Program 1 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 fees 3 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 fee 6 R ezoning application fee covers development permit fee 7 S ewer and water connection fees included in administration and processing fees 8 F loor area exemptions may be available on DCC fee depending on specific development

Regional Office Cost of Business Survey â&#x20AC;&#x201D; Fall 2018

METRO VANCOUVER

CHAPTER

Timing VANCOUVER CHAPTER 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

City of Chilliwack

N/A

60-120

Concurrent

120

33%

Township of Langley

60-120

Concurrent

120

City of Maple Ridge

N/A

60-120

Concurrent

120

150

-20%

District of Mission

60-120

Concurrent

120

300

-60%

City of Langley

N/A

60-120

Concurrent

<60

180

120

50%

City of Delta VANCOUVER CHAPTER

N/A

60-120

Concurrent

<60

180

150

20%

City of Richmond

N/A

120-180

Concurrent

180

150

20%

City of Abbotsford

14-21

120-180

Concurrent

180

210

-14%

City of Port Coquitlam

N/A

120-180

Concurrent

180

330

-45%

City of New Westminster

120-180

Concurrent

180

360

-50%

City of Port Moody

180-240

Concurrent

240

>180

33%

City of White Rock

180-240

Concurrent

240

City of Burnaby

N/A

180-240

Concurrent

240

>330

-27%

City of Pitt Meadows

N/A

180-240

Concurrent

240

>210

14%

City of Surrey

120-180

Concurrent

60-120

300

210

43%

City of Vancouver

N/A

240-365

Concurrent

365

>180

102%

District of North Vancouver

240-365

Concurrent

365

240

52%

District of West Vancouver

180-240

Concurrent

120-180

420

270

56%

City of North Vancouver

14-21

180-240

Concurrent

60-120

<60

420

360

17%

City of Coquitlam

365+

Concurrent

60-120

485

210

131%

5G R E A T E R

Increase from 2016 survey

Decrease from 2016 survey

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Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

Permit Data A

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.

Building Permits Issued for New and Major Renovation of Office Buildings in 2017 V A N C O U V E R Municipality

Total Construction Value

Total Number of Building Permits

District of Mission

$772,000

City of North Vancouver

$21,535,000

District of West Vancouver

City of Delta1

$19,781,343

Township of Langley

$17,435,000

City of Chilliwack

$2,741,000

City of White Rock

City of Surrey2

$56,338,097

City of Maple Ridge

City of New Westminster

$2,055,380

City of Coquitlam

$27,099,726

District of North Vancouver2

$5,095,350

City of Richmond

$16,771,963

155

City of Pitt Meadows

City of Port Coquitlam

$470,500

City of Port Moody

$3,218,540

City of Langley1

$9,596,306

City of Burnaby

$12,770,000

$13,282,100

$73,623,965

City of Abbotsford City of Vancouver

¹ Values include commercial, commercial/mixed-use and institutional for new buildings and additions ² Values include all commercial, commercial/mixed-use and institutional for new buildings only (no additions or renovations)

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CHAPTER

GREATER VANCOUVER

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Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

CHAPTER

Mill Rates I

n previous editions, this publication has addressed the CHAPTER 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-toresidential property tax burden are: n City of Surrey n City of Chilliwack n City of White Rock n District of West Vancouver n City of Port Moody The five municipalities with the highest commercial-toresidential property tax burden are: n City of Coquitlam n City of New Westminster n City of Vancouver n City of Burnaby n District of Mission VANCOUVER

GREATER VANCOUVER

CHAPTER

2016 Rank

2018 Rank

Municipality

2018 Commercial Mill Rate (Class 6)

2018 Residential Mill Rate (Class 1)

Commercial-toResidential Tax Ratio

City of Surrey

1.806

1.000

City of Chilliwack

8.093

3.368

2.403

City of White Rock

6.013

2.263

2.657

District of West Vancouver

3.410

1.234

2.765

City of Port Moody

6.925

2.473

2.801

City of Abbotsford

10.051

3.357

2.995

City of Langley

7.678

2.485

3.089

City of Richmond

4.834

1.515

3.191

City of Maple Ridge

9.843

2.996

3.285

Corporation of Delta

7.260

2.157

3.366

City of Pitt Meadows

8.978

2.642

3.398

District of North Vancouver

5.599

1.593

3.516

Township of Langley

7.886

2.104

3.749

City of Port Coquitlam

9.163

2.440

3.755

City of North Vancouver

6.176

1.605

3.849

District of Mission

12.903

3.223

4.004

City of Burnaby

4.200

1.040

4.040

City of Vancouver

5.030

1.244

4.044

City of New Westminster

10.42779

2.507

4.160

City of Coquitlam

8.5844

1.958

4.384

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Regional Office Cost of Business Survey â&#x20AC;&#x201D; Fall 2018

METRO VANCOUVER

Commercial-to-Residential Tax Ratio

VANCOUVER

CHAPTER

4.5 4.0 3.5 3.0

GREATER VANCOUVER

CHAPTER

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Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

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NAIOP Development Features King George Hub by PCI Developments VANCOUVER

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Project Description

GREATER VANCOUVER

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King 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.

400 West Georgia by Westbank Project Description

400 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.

Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

Commercial Real Estate

Awards of Excellence PRESENTED BY:

Commercial Real Estate Awards of Excellence gala salutes industry standouts

VANCOUVER

Four 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

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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. • GREATER VANCOUVER

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

Best Office Lease: Nickel Building

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

Best Retail: NorthWoods Village

Best Developing Leader: Ted Mildon

Best Mixed-Use Development: Solo District

Best Industrial Development: Delta Link Business Park

Best Investment Transaction: Willingdon Business Park

Best Tenant Improvement: 777 Dunsmuir – KPMG Offices

Judges’ Choice: Parq Vancouver

Regional Office Cost of Business Survey â&#x20AC;&#x201D; Fall 2018

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Municipal Update VANCOUVER

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GREATER VANCOUVER

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City of Port Coquitlam

unicipalities 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:

Commercial Official Community Plan Policies and Development Permit Areas are under review. City of Richmond

Industrial Land Intensification Study underway. District of West Vancouver

City of Abbotsford

Ambleside Town Centre Plan underway.

City Centre Plan and Historical Downtown Neighbourhood Plan underway.

Township of Langley

Williams Neighbourhood Plan underway. City of Burnaby

The 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.

City of Vancouver

Maple Ridge

Employment Land Investment Incentive Program underway. Additional area planning is anticipated along the Lougheed Corridor and Albion Flats. City of Pitt Meadows

Official Community Plan Review underway.

City 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 Vancouverâ&#x20AC;&#x2122;s economy and employment lands and the Broadway Corridor Planning Program. *Most of the above policies are subject to council and/or staff approval.

Regional Office Cost of Business Survey — Fall 2018

METRO VANCOUVER

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Office Trend: WELL Building Standard VANCOUVER

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

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Sound

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

e 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:

Light

Air

Movement

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

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

Water

Limits the presence of sediment and waterborne pathogens in water designated for human contact. Nourishment

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

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

Reduces 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. Mind

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

Thermal Comfort

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

Promotes 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.

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.

Our Business is Your Business Keep your finger on the pulse of business in Vancouver Subscribe at biv.com/subscribe or call 604.608.5147

Board of Directors 2018 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 CoChair, 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

Why become a member of NAIOP? • 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)

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.

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