LOCAL REAL ESTATE
SURVEY FINDS GROWTH

in
bul

AN ANALYSIS of
couver’s commericz] real
estate market reveais that
growth is most signifcant in
the industrial market.

Here, land sales have
become increasingly pro-
nounced over the first half
of 1987, reports Royal
LePage commercial real
estate services,

Many of Vancouver's in-
dustrial parks are being sub-
divided by owners who wish
to take advantage of the
strong demand for well-
located industrial land in
established areas, noted F.
Peter Maddocks, vice-presi-
dent and general manager,
Vancouver Commercial
Brokerage. He arlded that a
scarcity of available serviced
industria! land within close
proximity to Vancouver is
also prompting investors/
developers to seek produc-
tion in nearby Richmond
and Surrey.

“A number of Canada’s
major pension funds have

Van-

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ia

Vancouver's investment see-
tor, particularly within the
industrial market, where
they are purchasing acreage
and individual buildings, as
well as portfolios. For ex-
ample, a pension fund
recently purchased a maje;
portion of one of the largest
portfolios of industrial pro-
perties to be exclusively
listed with Royal LePage.
The peasion fund acquired
27 buildings in the portfolio,
which is located in the An-
nacis Business Park,"* said
Maddocks,

During the first quarter of
1987, the overall industrial
vacancy rate in Vancouver
(excluding surrounding
areas) was 8.5 per cent.
Since year-end 1986, rental
rates have increased by an
average of 50 cents per $q.
ft. Quoted rates now range
from $3.50 to $6.50 per sq.
ft.

Maddocks said rates may
climb another 25 cents per
sq. ft. over the short term,

market

space that comes on stream
in the second half. While
huild-to-suit still
predominates, some
speculative construction — is
underway i Vancouver and
surrounding areas.

In addition to displaying
interest in the industrial see-
tor, investors — particularly
Canadian pension funds and
Asians — are looking at
hotels, high-rise residential
building and retail plazas.
Prime product in the central
business district. remains
scarce,

“In all instances, howev-
er, the investment communi-
ty is approaching the market
cautiously due to recurring
labor problems and im-
plementation of a property
purchase tax by the provin-
cial government in its March
1987 budget. AU residential
and commercial real estate
transactions are subject to
the new legislation. Invest-
ment activity is not expected
to giin momentum until the

n Vancouver

fully examined the new legis-
lation and is satisfied that
the government is effectively
dealing with recurring labor
problems,’* said Maddocks.

During the first quarter of
1987, the overall office
vacaney rate was 19 per cent,
In the core, one new office
project. was completed and
approximately 70 per cent of
the 300,000 sq. ft. building
has been leased. During the
sume period, net absorption
in the core reached 170,000
sy. ft.. offsetting the addi-
tion of new product and,
subsequently, producing a
slight decline in the core of-
fice vacancy rate.

Quoted net rental rates for
core class A space remain
between SIS to $25 per sq.
ft. Landlords of core class B
space are achieving rents of
$9 to $14. Strong induce-
ments remain in place. Many
landlords of class B
buildings have initiated ex-
tensive retrofit programs to
common areas of their

51 - Friday, August 28, 1987 - North Shore News

New downtown
office space
constructed

1986, over
599,000) square feet of
new office space has been
completed in the
downtown peninsula area
of Vancouver.

This is considerably
less than fast year's addi-
tion which totalled
$50,000 square feet.

The most prominent
addition to the inventory
was 885 West Georgia St.
(Bank of B.C., division
of Hong Kong Bank of
Canada, building) which
comprises 390,000 squure
feet.

There are no office
buildings currently under
construction in the
downtown peninsula.

The amount of office
space absorbed annually
over the past two years
was almost identical.

This year approximate-
ly 591,000 square feet of
office space was absorb-
ed, compared with
596,000 square feet ab-

sorbed in 1986.

The inventory growth
in 1987, while less than
1986 total of 850,000
square feet, suill outpaced
the absorption, as over
650,000 square feet of of-
fice space was added to
the inventory.

The average annual ab-
sorption over the past
five yveurs is 268,859
square feel per year.

The overall vacancy
rate for office space in
the downtown core as of
June 1987 was 16.4 per
cent, down slightly from
the 1986 rate of 16.6 per
cent. This rate is derived
from a data base with an
inventory of over 20.7
million square feet.

The vacancy rate for
office space in buildings
of 20,000 square feet or
more (with at least 60 per
cent designated for office
use) has decreased
marginally from 18.6 per
cent in June 1986 to 18.5
per cent in June 1987.

assumed an active role in depending on the amount of investment community has — buildings.

~ WEST VANCOUVER, B.C.
926-5424

.

$287,500

AWARD WINNING DESIGN
SPECTACULAR VIEWS
~- Skylights, marble & tuxurious broadioam.
- 3 bedrooms plus.
- A perfect home for 2 or 3.
- "O" for viewing Sun. 2-4, 5294 Keith Rd.
JOHN WILTON 926-1022

TEA FOR TWO WITH A GORGEOUS VIEW
~ All on one level.

- Family kitchen.

- 2 bedrooms.

- Spacious liv & din rm.

SO NICE 16 COME HOME TO
- Over 3000 sq.ft. of perler: home.
- Lge. property with swimming pool.
~ 3 bdrms plus room for nanny.
- Br. Prag’s. location.

UNSURFASSED OCEAN VIEWS
- West Coast contemporary.
- 3 bdrms plus sep. master wing.
- Fam. rm & den.
- 6 ys. young.

$199,000

+ iF add
TREMENDOUS ACCOMODATION VALUE
Imagine getting gracious liv rm. sep. din tm, dark
oak floor, sparkling white kitchen, den, 3/4 bdrms,
tull ensuite, nanny space plus rec tm down, im-
maculately maintained. Wondertul deck spaces
overlooking gentle brook and private kiddie's rear
yard. A home tor entertaining and family fun.
Close to school, transport, even walk to the

beach.

VIEW IN HOLLYBURN
~ Super kitchen with skylights.
- Liv & din rm open onto deck.
- 3 bdrms up, 2 down & fam rm.
- South side of street.

WaT Sera woes
EXCITING CEDAR & GLASS
- Skylights, berbar & ceramic tile.
- Overlaoks Fisherman's Cove.
~ 3 bdrms
- but for the young a! heart

Carolyn Stenson —

Res. 926-4025