Promotional su PPlement VANCOUVER CHAPTER...Development Association (NAIOP) is pleased to present the 2014 edition of its Commercial Development “Report Card” Fall 2014 Regional

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

The Vancouver Chapter of the Commercial Real Estate Development Association (NAIOP) is pleased to present the 2014 edition of its Commercial Development “Report Card”

Fall 2014

Regional

officeDevelopment cost Survey

15TH ANNUAl

2014 HighlightsNAIOP will be acknowledging six 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

This year’s winners are:

Most IMproved:White Rock and Maple Ridge – they have managed an 18% reduction for total costs from 2012 to 2014

Most Fiscally responsible:West Vancouver – has managed to keep an annual average inflation rate of 0.91% over the last 14 years

Most Business-Friendly:City of North Vancouver – for its energy-efficient buildings initiative, specifically the opportunity to increase buildable floor area on the site as a condition of increasing energy efficiency targets beyond those required in the BC Building Code

District of North Vancouver – for its green building strategy, specifically the opportunity to increase buildable floor area in return for meeting green building guidelines and an energy performance target

City of Richmond – for its green building incentives, specifically its zoning bylaw allowance for floor area exemption for green buildings’ mechanical and associated service spaces.

Some Positive Highlights to Note:• Four municipalities have

lowered their costs• Four municipalities held their cost

increases below the rate of inflation• Seven municipalities have reduced

their application processing times

Some Not-So-Positive Highlights to Note:• Five municipalities have increased

their application processing times• Four municipalities have increased

their costs at or above 28%

With the last quarter of 2014 well underway, the next edition of the

Commercial Cost of Business Survey is ready for your review. Economic growth in 2014 is increasing, due to international demand for British Columbia’s natural resources. With a large amount of new commercial product coming to the local market, the overall vacancy rate has been on an upward trend since 2012. The current commercial vacancy rate is up 2% to 9.7% from last year. These results are projected to continue into the near future.

The survey, which is distributed to 20 municipalities within the Lower Mainland, requires each municipality to identify the costs and processing times associated with the parameters of the case study outlined within this article. For 2014, the development project was, as per the previous surveys, the construction of a two-storey, 50,000-square-foot office building on 2.5 acres of land requiring both subdivision and rezoning.

Just as the 2012 survey reported, we thought it would be interesting to show the costs we first reported back in 2000 at the survey’s inception to give some historical background of the increases (or decreases) compared to the historical equivalent annual average inflation rate during that period. We are sure you will find these particular results quite informative.

In producing this annual publication, NAIOP strives to provide its membership and the business community as a whole with a reference tool that quantifies the costs and processing times associated with typical development projects within Metro Vancouver municipal jurisdictions. Moreover, we believe the survey can 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.

IndexSurvey Scenario . . . . . . . . . . . . . . . 3Exectutive Summary . . . . . . . . . . . . 4Marketbeat: Office Snapshot . . . . . . 6Future Trends . . . . . . . . . . . . . . . . . 8Comparative Tax Burden . . . . . . . . . 9Municipal Fees . . . . . . . . . . . . . . . 10Timing . . . . . . . . . . . . . . . . . . . . . 11Mill Rates . . . . . . . . . . . . . . . . . . . 122014 NAIOP Icon Profile . . . . . . . . 13Move Towards Green . . . . . . . . . . . 14NAIOP Mentorship Program . . . . . 16NAIOP Education . . . . . . . . . . . . . 17CREA . . . . . . . . . . . . . . . . . . . . . . 18

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Regional Office Development Cost Survey — Fall 2014 3




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 2.5 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 water and sewer charges, returnable security deposits, and letters of credit have been broken out as separate items for comparative purposes but have not been included in totals due to regional variation in methods for calculating these items.

Subject property is currently:• Not subdivided• Zoned residential• 2.5 acres• Development proposal• Two-storey, 50,000-square-foot

office building• Interior lot with 295 feet of frontage

on dedicated municipal roadway• Net size of two acres after road and

other dedications• Required municipal processes

• Rezoning• Subdivision• Development permit• Building permit• Construction costs• $132 PSF for the building

($6.6 million)• $12 PSF for site improvements

($600,000)• $600,000 for street and drainage

improvements (not DCC rebatable)

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Contamination Management

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Construction Monitoring

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4 Regional Office Development Cost Survey — Fall 2014




guide their decisions on the industrial land base.

Metro Vancouver’s 2012 report, Market Readiness of Metro Vancouver Vacant Industrial Lands, identified 1,988 acres as available for industrial development after 2017. Further review by PLG in its 2013 report determined a more accurate total area for the lands to be 2,313 acres. However, by reviewing each individual lot, PLG’s analysis also determined that 1,838 acres of land were affected by at least one development constraint; government/quasi-government ownership was the most prevalent restriction, encumbering 1,090 acres of land. The analysis shows that of the

Metro Vancouver’s Industrial land Base

EXECUTIVE SUMMARY OCTOBER 2014

E x E c u t i v E S u m m a ry

Vacant industrial land in Metro Vancouver is experiencing diminished

available inventory year over year as steady absorption continues to outpace the market-ready supply of developable land. Based on the best case of historical absorption figures, with no change in fundamental development economics, these lands could represent less than a decade’s supply of general industrial land – and potentially far less supply for land serving regional and national users.

m i n d i n g t h E n u m b E r SFollowing the June 2013 release of Analysis of Metro Vancouver’s 2012 Market

Readiness of Vacant Industrial Lands Report, conducted by Pacific Land Group (PLG), NAIOP Vancouver retained PLG to conduct a supplementary review. At issue are the lands identified as being readily available for long-term development; these were taken from an earlier report, Market Readiness of Metro Vancouver Vacant Industrial Lands, issued in August 2012, which built on an even earlier report, Metro Vancouver 2010 Industrial Lands Inventory.

The primary purpose of the supplementary review is to ensure that key policy-makers like Metro Vancouver are working with as accurate and realistic an information database as possible to

a c k n o w l E d g E m E n t NAIOP Vancouver would like to acknowledge Metro Vancouver for supplying the Metro Vancouver 2013 Industrial Lands Inventory data upon which this report is based, Pacific Land Group for the analysis of the Metro Vancouver data and CBRE Ltd. and Colliers International for their assistance on the case studies.

For a copy of the full report, visit the NAIOP Vancouver website:www.naiopvcr.com

VANCOUVERMAPLERIDGE

RICHMOND

SURREY

COQUITLAM

NEWWESTMINSTER

BURNABY

DELTALANGLEY

NORTH VANCOUVER

PORT MOODY

PITTMEADOWS

MISSION

ABBOTSFORDYXX

YVRYPK

WHITE ROCK





Executive Summary

2,313 acres, only 476 acres are serviceable, privately owned lands available for development. This limited supply of land creates significant hurdles in addressing the needs of industrial users as the typical, yearly demand for industrial land is 320 to 400 acres per year. Even by resolving some of the constraints to development, the amount of land that could be made available for development is still less than that required by the market.

Based on the historical average of land absorption of 250 acres per year, as determined by Metro Vancouver using statistics from 2005 to 2010, the 476 acres (across all eight inventory areas) represent just under two years of supply. When combined with the 2,443 acres previously identified by PLG as being available, 2,919 acres are considered available, providing just over 11 years of supply. This relatively low amount of supply constrains local industrial land users from expanding within the region and discourages foreign industrial land users from locating to the region. In both cases, opportunities for growth in employment are challenged.

E x pa n d i n g t h E d i S c u S S i o nThe 2012 report was limited in its scope to a review of the Metro Vancouver Industrial Land Inventory, but we believe

there are a number of other areas of investigation that should be examined from a regional perspective by Metro Vancouver policy-makers to facilitate an informal, open discussion on this issue. A key consideration in any discussion should be consideration of the land-use impacts and opportunities arising from the significant regional investment to improve our goods-movement infrastructure, such as the South Fraser and North Fraser Perimeter Road projects.

NAIOP’s interest is aligned with the region’s interest in ensuring that the region retains the ability to support the expected future growth in employment, both in the short to medium term and in the long term as well. NAIOP wants to foster an environment where discussion can take place between all stakeholders regarding regional opportunities to secure future land, and balance of those needs with the province’s economic drivers.

n a i o p ’ S p o S i t i o nNAIOP is not in favour of the establishment of an industrial land reserve, as we believe this will severely limit the ability of the region to respond effectively to market forces and infrastructure changes and the ability to shift uses and transportation patterns over time. NAIOP believes that there is currently enough

protection contained within the Regional Growth Strategy and municipal zoning to protect currently zoned and designated industrial lands.

We believe it is necessary for all levels of government to foster the conditions necessary to ensure that a sufficient supply of industrial land is available to the marketplace in the short to medium term, as land availability has been shown to drive absorption. Without the ability for end-users to acquire land necessary for the establishment and growth of their businesses, some of these key job creators will be forced, out of necessity, to find lands in other regions to meet their needs, which will serve only to reduce the overall economic prosperity of Metro Vancouver.

This reality was recognized in Metro Vancouver’s 2005 and updated 2010 Industrial Land Inventory report, and continues to hold true:

“The amount of vacant industrial land in the inner [Vancouver] and middle ring areas of the region is limited. Industrial land is needed in all sub regions in order to provide city-serving industrial activities, a diversity of jobs, proximity to the labour force for commuting, and efficient use of goods movement infrastructure, including, road, rail, and barge.”

“The amount of vacant industrial land in the inner [Vancouver] and middle ring areas of the region is limited. Industrial land is needed in all sub regions in order to provide city-serving industrial activities, a diversity of jobs, proximity to the labour force for commuting, and efficient use of goods movement infrastructure, including, road, rail, and barge.”

19th Floor, 885 West Georgia Street Vancouver, British Columbia V6C 3H4 Canada Telephone 604-891-3688 Fax 604-891-3788 www.kkbl.com

Our Commercial Real Estate practice group represents clients in a variety of complex real estate transactions and development matters including: the purchase and sale of shopping centres, office buildings and industrial parks; strata property development matters, including the preparation and filing of Disclosure Statements under the Real Estate Development Marketing Act; land assemblies, subdivision matters, including providing advice regarding

environmental and municipal require-ments; bare land strata developments, strata hotel and recreational develop-ments, and leasing transactions (industrial, office, retail, and First Nations). We also advise our real estate clients in connection with construction, takeout and inventory financings, and the structuring of joint ventures, co-ownership arrangements and real estate syndications of all types, including limited partnerships.

�e Commercial Real Estate Group of Koffman Kalef LLP are:

Standing left to right: Patrick J. Julian; Mark E. Wong; Andrew G. Kadler; Michael M. Kalef; Andrea J. Wales; Mark A. Bickford; Stan Wong Seated from left to right: Leslie A. Tucker; Daniel S. Remick; Morley Koffman, QC; Erin K. Tait





Marketbeat: Office Snapshot

E c o n o m i c o v E rv i E w

With B.C.’s location on the Pacific Rim, key drivers for export differ

markedly from those of Canada as a whole, and this diversification has helped the B.C. economy. In 2013, over 46.8% of B.C.’s exports went to the U.S., 40.8% to Asia (including Japan) and 12.4% to other countries. Despite a weaker-than-expected global economy and a 28-day strike at Port Metro Vancouver, global exports managed to post a growth of 3.6% in Q1. The growth in exports is associated with stronger demand in the U.S. housing market and increasing demand for B.C. resources overseas – particularly China, which is the second-largest buyer of B.C’.s exports – will be the key to driving the B.C. economy forward.

oFFicE markEt ovErviEwVacancy rates for Metro Vancouver continued their upward climb for the third consecutive quarter, increasing by a full percentage point since Q1. The city saw positive absorption this quarter, though, in excess of 160,000 square feet (sf). This

is almost exclusively attributable to new construction completions, which caused positive absorption in Class A space, while both the B and C classes experienced negative absorption.

Although downtown Vancouver has seen vacancy rates increase, there was some positivity recently with two significant leases signed: Microsoft and Sony Pictures Imageworks. Microsoft is increasing its downtown presence from approximately 100,000 sf to 143,000 sf as well as consolidating its space into 725 Granville Street, Cadillac Fairview’s newly remodelled/expanded project. Also moving into Cadillac Fairview’s soon-to-be-completed office building, Sony has made the bold decision to relocate its head office from Los Angeles to Vancouver (incentivized by federal and provincial tax credits).

In the suburban markets, leasing activity has been slow and vacancy rates are reflective of that inactivity, especially in Burnaby and Surrey. Burnaby added 411,000 sf to its inventory with the completion of Metrotower III, which is

A Cushman & Wakefield Research Publication

Direct rental vs. vacancy rates

leasing activity

Market Highlights

* RENEWAL / EXPANSION NOT INCLUDED IN LEASING ACTIVITY STATISTICS

SIGNIFICANT Q2 2014 LEASE TRANSACTIONS

SUBMARKET TENANT BUILDING CLASS SQUARE FEET

725 Granville Street Financial Core Microsoft AAA 143,000

725 Granville Street Financial Core Sony Pictures Imageworks AAA 74,000

885 Dunsmuir Street Financial Core Tetra Tech Inc. C 50,000

Station Tower Surrey Fraser Health Authority A 37,258

Metrotower II Burnaby Interfor A 27,222

SIGNIFICANT Q2 2014 SALE TRANSACTIONS

SUBMARKET BUYER PURCHASE PRICE / $PSF SQUARE FEET

False Creek Research Park Vancouver H&R REIT $32,725,000 / $447 73,197

Marlborough Court Burnaby 0997218 B.C. Ltd. $27,200,000 / $326 83,500

Walnut Central Langley Britco (20091 91A Avenue Holdings Ltd.) $5,550,000 / $239 23,213

761 Cardero Street Vancouver Bosa Development Corp. $5,500,000/ $753 7,300

SIGNIFICANT Q2 2014 CONSTRUCTION COMPLETIONS

SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET

Metrotower III Burnaby Stantec / Hemmera Q2 2014 411,472

Broadway Tech Centre – Bldg. 5 Burnaby Golder Q2 2014 175,000

1553-1577 Main Street Broadway CBSA (Border Services) Q2 2014 88,530

564 Beatty Street Financial Core SPEC Q2 2014 35,263

1028 Hamilton Street Financial Core SPEC Q2 2014 21,753

SIGNIFICANT PROJECTS UNDER CONSTRUCTION

SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET (% LEASED)

Telus Garden Financial Core Telus / Bull Housser / Amazon Q3 2014 462,705 (91%)

745 Thurlow Financial Core SNC-Lavalin / McCarthy Tétrault Q2 2015 400,000 (75%)

The Exchange Tower Financial Core SPEC Q4 2016 398,625 (0%)

725 Granville Street Financial Core Microsoft / Sony / Miller Thomson Q4 2014 280,000 (90%)

980 Howe Street Financial Core BGC Engineering Q2 2015 268,908 (25%)

MNP Tower Financial Core Meyers Norris Penny Ltd. Q2 2014 264,498 (80%)

Marine Gateway Broadway Corridor Westport Innovations Q2 2015 240,186 (50%)

Solo District Burnaby SPEC Q1 2016 230,000 (9%)

King George Station Surrey Coast Capital Q3 2015 180,000 (100%)

Renfrew Centre Burnaby SPEC Q1 2016 170,000 (0%)

Anvil Centre (former Merchant Square) New Westminster SPEC Q3 2014 137,085 (0%)





Marketbeat

STATS ON THE GOQ2 2013 Q2 2014 Y-O-Y

Change 12-mo. Forecast

Overall Vacancy 7.7% 9.7% 2.0 pp ▲

Direct Net Asking Rents (psf/yr)

$22.33 $23.65 5.9% ▼

YTD Leasing Activity (sf)

2,369,038 2,325,734 -1.8% ▼

only 25% pre-leased. Several buildings are also currently under construction on a speculative basis, which will further increase vacancy rates in suburban markets such as New Westminster (Anvil Centre), Surrey (Gateway Place and Croydon Square) and Burnaby (Solo and Renfrew Centre).

Investment activity seems to be on the rise as of late, with several properties trading for more than $5 million. H&R REIT acquired False Creek Research Park

(1618 Station Street, Vancouver) for just over $32 million and Marlborough Court (5021 Kingsway, Burnaby) recently sold for more than $27 million, to name just two of the more significant deals.

outlookAs the market slowly shifts to a more balanced market, there are new trends occurring, many of which have not been seen in more than 15 years. For the first time in so many years, leasing fees

are increasing and landlords are even willing to pay for services rendered for negotiations that retain tenants in their buildings.

The forecast is for vacancy rates to continue their upward trend, which will conversely affect lease rates. This might not be obvious in the slight to moderate decrease in achieved rates, but rather is reflected in the incentives that are being offered by landlords in order to preserve face rates.

NAIOP would like to acknowledge Cushmand and Wakefield for contributing to the Marketbeat Report.

Vancouver MarketSUBMARKET INVENTORY OVERALL

VACANCY RATE

DIRECT VACANCY RATE

YTD LEASING ACTIVITY

UNDER CONSTRUCTION

YTD CONSTRUCTION COMPLETIONS

CURRENT QUARTER ABSORPTION

YTD OVERALL ABSORPTION

WTD. AVG. ALL CLASSES GROSS RENTAL RATE*

WTD. AVG. CLASS A GROSS RENTAL RATE*

Downtown Vancouver

24,693,263 6.3% 5.2% 1,019,408 2,285,868 57,016 (49,985) (89,248) $45.82 $51.07

Broadway Corridor 6,454,989 5.0% 4.6% 196,158 336,545 88,530 88,680 132,730 $35.98 $41.83

Central Total 31,148,252 6.1% 5.1% 1,215,566 2,622,413 145,546 38,695 43,482 $44.20 $49.62

Burnaby 10,602,187 11.4% 10.9% 366,314 393,577 586,472 183,890 123,087 $38.73 $43.19

Richmond 4,358,727 16.5% 15.6% 463,321 0 0 33,236 (1,133) $24.64 $27.16

North Shore 1,523,825 8.3% 8.1% 76,925 20,000 0 14,567 4,930 $31.61 $37.04

New Westminster 1,359,005 11.6% 10.9% 4,992 137,085 18,000 2,524 11,160 $27.39 $36.32

Surrey / Langley 5,068,926 22.4% 20.4% 198,616 293,500 150,000 (112,910) (1,412) $28.79 $29.60

Suburban Total 22,912,670 14.6% 13.7% 1,110,168 844,162 754,472 121,307 136,632 $32.93 $36.11

TOTAL 54,060,922 9.7% 8.7% 2,325,734 3,466,575 900,018 160,002 180,114 $37.70 $40.82

* RENTAL RATES REFLECT ASKING $PSF/YEAR





Future Trends

As an indication of what the future could bring, NAIOP includes a

section within its survey on future policy directions and changes to existing policies that were under consideration at the time of publication. This information comes with a general disclaimer that all or a majority of these potential changes are subject to both council or staff approval and final drafting. Below are some highlights of what could be coming in the near future to a jurisdiction near you.

City of AbbotsfordThe City of Abbotsford is engaged in a total rewrite of its Zoning Bylaw with completion anticipated in fall 2014. As well, an update of the Official Community Plan has been initiated with a completion date near December 2015.

City of ChilliwackThe city has a draft Official Community Plan out for comment. It can be accessed on the city’s website, www.chilliwack.com.

City of CoquitlamCity staff are currently undertaking an industrial zones consolidation project. Staff will be contacting NAIOP as part of its upcoming consultation process.

City of North VancouverThe city is creating a density bonusing policy and is currently reviewing a draft of an update to the Official Community Plan.

City of New WestminsterA review and update of the Official Community Plan recently started and is expected to complete by 2016.

City of VancouverVancouver is not currently engaged in an overall review of commercial or industrial strategies over the entire city. Discussions on commercial/industrial land occur through the work on neighbourhood plans or similar studies, which undergo extensive public and agency consultation. At that time, Vancouver would seek input and consultation from groups such as NAIOP.

District of Maple RidgeThe Commercial and Industrial Strategy is currently underway.

Most Improved: White Rock and Maple Ridge – they have managed an 18% reduction for total costs from 2012 to 2014

Most Fiscally Responsible: West Vancouver – has managed to keep an annual average inflation rate of 0.91% over the last 14 years

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Comparative Tax Burden

While it may not be the primary consideration, a growing number

of businesses are considering the impact of the property tax burden, and the variations in that burden across the region, when making the decision on where to locate. Property taxes are not, for the most part, factored into per-square-foot lease prices but, like common area and maintenance (CAM) costs, they are paid in addition to the base lease rates.

Municipal property taxes pay for city services such as parks, roads, utilities, policing, fire protection and local improvements. Property tax rates within any municipality are affected by two factors. The first is the value of the property being taxed and the second is the tax rate (mill rate) that the municipality applies to various property types.

Municipalities ensure their ability to balance their budgets with their ability to adjust mill rates. The property tax burden for businesses varies from jurisdiction to jurisdiction, however; compared to residential tax rates, businesses (“industrial” and “commercial” property

designations) pay a significantly greater proportion of the property taxes.

For light industrial and commercial properties, research has indicated that the ideal median tax ratio (industrial/commercial tax rate to residential tax rate) is 3 to 1. Fewer than half the municipalities surveyed are in line with this ratio. The awareness among business owners of the disparity between commercial and residential tax rates is growing. Overall, ratios are lower in 2014 than they were in 2012, but no single municipality reduced their ratio by a significant amount.

For 2014, the five municipalities with the lowest commercial to residential property tax burden (rated from lowest to highest) were:

• City of Chilliwack• City of Langley• District of West Vancouver• City of Abbotsford• City of White Rock

The five Metro Vancouver and Fraser

Valley municipalities with the highest commercial to residential property tax burden (rated from highest to lowest) were:

• City of Coquitlam• City of Vancouver• City of Burnaby• City of New Westminster• District of Mission

Small and medium-sized commercial businesses are essential to the socio-economic health of the community and contribute to the goal of building compact, sustainable cities.

High municipal property taxes for these types of businesses have serious impacts on our city, neighbourhoods and employment opportunities for residents. Although it is often said that businesses “don’t vote” in local elections, in reality they do cast a ballot, by making the decision to relocate to lower cost jurisdictions in which their business can thrive and contribute to the sustainability and vitality of their local communities.

Most Business-Friendly: City of North Vancouver – for its energy-efficient buildings initiative, specifically the opportunity to increase buildable floor area on the site as a condition of increasing energy efficiency targets beyond those required in the BC Building Code

425 Carrall, VancouverBrick Yard Station, Surrey Local, North Vancouver Station Square, Burnaby





1 DCC fee dependent on area2 Assuming $97,500 mainland, otherwise $260,000 queensborough3 Sewer and water hookup costs use actual costs4 Works completed by developer. Inspection fees included in servicing works inspection fees5 Costs for water hookups would be through the private utility (EPCOR)6 DP not required in most instances if located outside City Centre Planning Area

7 Streetscape Levy that funds conversion of overhead BC Hydro and Telecommunication wires8 Metro Vancouver/GVRD charges are based on East Richmond as the city has multiple rate areas. Charges in West

Richmond would be $25,2509 Waste Management Fee $20,000 deposit up to $19,500 refundable; Tree Removal Permit (if applicable) $500; Refundable

Security for Engineering Works $600,00010 100% of estimated cost + 10% contingency + 5% inflationWhere variable fees were given, but total amount not quanitified, the minimum $ amount was used

Increase from 2012 survey

Decrease from 2012 survey

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2 1 City of White Rock5 $1,350 $0 $57,298 $0 $14,500 $62,893 $0 $0 $201 $2,000 $2,400 $40,550 $0 $0 $69,641 $140,643 $171,124 -18% $104,386 35% 2.01%

3 2 City of Port Moody3,9,10 $3,077 $78 $49,669 $67 $24,000 $55,143 $0 $0 2% of landscape

$11,275 $12,064 $40,500 See Note $1,000 $79,504 $155,374 $174,079 -11% $101,475 53% 2.88%

1 3 City of Burnaby $2,639 $100 $73,354 $2,060 $24,600 $0 $19,353 $10,307 $0 $16,920 $7,521 $40,550 $0 $0 $72,985 $156,854 $148,228 6% $60,144 161% 6.60%

5 4 City of New Westminster2 $1,200 $100 $58,720 $263 $25,620 $97,500 $25,000 $10,000 $0 $2,835 $3,740 $40,550 125% of landscape estimate

$0 $103,181 $224,978 $221,609 2% $66,605 238% 8.45%

8 5 District of Maple Ridge1 $2,442 $0 $45,668 $0 $24,000 $122,214 $21,000 $5,000 $0 $2,492 $5,590 $40,550 100% of landscape bond

$0 $99,305 $228,406 $277,372 -18% $127,711 79% 3.95%

6 6 City of Chilliwack $720 $50 $54,517 $0 $8,000 $195,369 $160 $80 $0 $621 $2,465 $0 $25,000 $0 $81,519 $261,982 $248,707 5% n/a n/a n/a

4 7 City of Pitt Meadows $1,850 $0 $72,000 $0 $21,000 $104,561 $35,000 $15,000 $0 $4,358 $8,975 $42,281 $0 $0 $97,361 $262,744 $204,571 28% $114,216 130% 5.71%

7 8 The Corporation of Delta $435 $0 $50,648 $0 $24,000 $127,366 $35,000 $30,000 $6,000 $600 $3,029 $40,548 $0 $0 $82,520 $277,078 $267,000 4% $198,709 39% 2.24%

9 9 City of Port Coquitlam $750 $200 $59,000 $3,000 $24,000 $187,518 $16,900 $7,500 $0 $2,300 $11,044 $40,550 $0 $0 $100,920 $312,212 $285,263 9% $222,435 40% 2.29%

11 10 Township of Langley $1,760 $0 $55,981 $500 $28,250 $258,156 $0 $7,500 $0 $5,745 $10,000 $40,550 $0 $2,000 $74,904 $367,892 $354,897 4% $161,415 128% 5.65%

13 11 District of West Vancouver $5,000 $100 $65,550 $769 $20,500 $229,900 $31,000 $15,000 $0 $0 $9,000 $30,250 $0 $600 $33,112 $376,819 $371,375 1% $329,010 15% 0.91%

16 12 City of Coquitlam4 $2,500 $0 $57,568 $250 $0 $276,238 $0 $0 $28,375 $5,984 $10,088 $40,550 $0 $0 $107,739 $381,003 $377,929 1% $293,991 30% 1.74%

14 13 City of North Vancouver $1,650 $100 $58,126 $973 $35,450 $266,391 $42,000 $18,000 $0 $0 $5,421 $30,250 $780,000 $0 $63,780 $428,111 $372,986 15% $335,719 28% 1.63%

10 14 District of North Vancouver $1,780 $0 $80,277 $1,730 $27,115 $269,735 $33,333 $31,000 $0 $3,750 $5,190 $30,250 $0 $765 $66,134 $453,910 $335,345 35% $238,648 90% 4.38%

15 15 District of Mission $1,693 $100 $49,839 $961 $31,500 $384,479 $4,774 $1,167 $0 $2,457 $4,703 $0 $0 $0 $128,145 $481,673 $377,215 28% n/a n/a n/a

12 16 City of Langley $2,100 $0 $59,630 $1,000 $27,000 $341,650 $25,500 $31,000 $0 $7,145 $5,012 $40,550 $0 $0 $69,285 $500,037 $369,636 35% $132,094 279% 9.28%

17 17 City of Surrey $1,990 $0 $56,789 $0 $40,458 $399,000 $0 $0 $0 $5,827 $5,926 $40,550 $0 $0 $54,731 $509,990 $467,111 9% $280,375 82% 4.07%

18 18 City of Abbotsford3 7 $1,725 $100 $43,955 $105 $24,500 $406,716 $0 $0 $51,095 $3,368 $5,129 $0 $0 $4,638 $98,950 $536,693 $547,083 -2% n/a n/a n/a

19 19 City of Richmond6 8 $857 $65 $58,308 $756 $24,000 $561,000 $11,800 $10,800 $0 $7,087 $4,040 $40,530 $0 $0 $56,837 $678,712 $672,275 1% $193,423 251% 8.73%

20 20 City of Vancouver $44,700 $0 $29,442 $1,150 $0 $633,500 $24,015 $36,608 $742 $13,743 $17,960 $22,150 $600,000 $2,625 $61,497 $801,860 $732,401 9% $202,460 296% 9.61%

Percentage change





Municipal development fees

1 Outside estimate inclusive of concurrent processing of rezoning, subdivision, DP and BP where allowed, not including pre-application review

Timing

Increase from 2012 Survey

Decrease from 2012 Survey

2012 Rank 2014 Rank Municipality Pre-Application Design Review (days)

Rezoning Process (days)

Development Permit Process (days)

Subdivision Approval (days)

Building Permit (days)

2014 Approval Timing1

(days)

2012 Approval Timing

Percentage Change

Metro Vancouver

1 1 City of Chilliwack n/a 30-90 concurrent concurrent concurrent 90 90 0%

2 1 City of Surrey n/a 30-90 concurrent concurrent concurrent 90 120 -25%

2 2 Township of Langley n/a 90-120 concurrent concurrent concurrent 120 120 0%

3 2 Municipality of Delta 2 30-90 concurrent concurrent <30 120 150 -20%

2 2 City of Langley n/a 30-90 concurrent concurrent <30 120 120 0%

3 3 City of Burnaby n/a 120-150 concurrent concurrent concurrent 150 180 -17%

4 3 City of Abbotsford n/a 90-120 concurrent concurrent <30 150 180 -17%

4 3 City of Port Moody 30 120-150 concurrent concurrent concurrent 150 180 -17%

3 3 City of Richmond 10 120-150 concurrent concurrent concurrent 150 150 0%

3 4 District of Maple Ridge 2 120-150 concurrent concurrent <30 180 150 20%

4 4 City of New Westminster n/a 150-180 concurrent concurrent concurrent 180 180 0%

3 5 City of Pitt Meadows n/a 120-150 <30 concurrent <30 210 150 40%

3 5 City of Port Coquitlam 90-120 concurrent concurrent 30-90 210 150 40%

5 5 District of North Vancouver n/a 90-120 concurrent concurrent 30-90 210 210 0%

6 5 City of Coquitlam n/a 90-120 concurrent concurrent 30-90 210 240 -13%

8 6 City of White Rock n/a 90-120 concurrent concurrent 90-120 240 330 -27%

7 7 City of Vancouver 1 >180 30-90 concurrent concurrent 270 270 0%

7 7 District of West Vancouver n/a 150-180 concurrent concurrent 30-90 270 270 0%

6 8 City of North Vancouver n/a 120-150 concurrent 30-90 30-90 330 240 38%

5 9 District of Mission n/a 30-90 30-90 90-120 30-90 390 210 86%

Timing





Mill Rates2012 Rank

2014 Rank

Municipality Commercial Mill Rate

Residential Mill Rate

Commercial to Residential Tax Ratio

Metro Vancouver

1 1 City of Chilliwack 10.45 5.18 2.02

2 2 City of Langley 8.88 3.89 2.29

5 3 District of West Vancouver 4.25 1.77 2.39

4 4 City of Abbotsford 12.69 5.17 2.45

3 5 City of White Rock 8.93 3.58 2.49

9 6 City of Surrey 7.02 2.47 2.84

6 7 District of Maple Ridge 12.73 4.46 2.85

8 8 City of Port Moody 10.19 3.52 2.89

7 9 Township of Langley 9.60 3.23 2.97

12 10 Municipality of Delta 10.58 3.47 3.04

11 11 City of Pitt Meadows 12.48 4.01 3.11

15 12 City of Richmond 7.29 2.25 3.24

13 13 City of Port Coquitlam 12.94 3.88 3.33

17 14 City of North Vancouver 8.18 2.38 3.43

14 15 District of North Vancouver 8.48 2.44 3.47

10 16 District of Mission 16.43 4.68 3.51

16 17 City of New Westminster 13.23 3.75 3.52

19 18 City of Burnaby 9.36 2.34 3.99

18 19 City of Vancouver 7.88 1.85 4.27

20 20 City of Coquitlam 13.81 3.20 4.31

Mill rates

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NAIOP Vancouver’s Icon luncheon – Featuring the Hon. Gordon Campbell

NAIOP Vancouver will be featuring its annual Icon

Luncheon on Tuesday, December 9 at the Fairmont Waterfront Hotel, from 11:30 a.m. to 2 p.m. Our featured Icon speaker this year is the Hon. Gordon Campbell, high commissioner for Canada. He will be in discussion with David Podmore, chair of Concert Properties.

Gordon Campbell became Canada’s high commissioner to the United Kingdom in September 2011.

Prior to his appointment, Campbell served three terms as

premier of the province of British Columbia, during which time he was ranked best fiscal manager among Canadian premiers by the Fraser Institute.

Campbell began his political career in local politics in Vancouver, where he went on to serve as mayor for three successive terms and spearheaded key urban regeneration projects and groundbreaking initiatives in literacy and cultural diversity.

A Vancouver native, Campbell studied English and Urban Studies at Dartmouth College in New Hampshire and completed his MBA at Simon Fraser University in British Columbia.

He spent two years teaching with the Canadian University Service Overseas in Nigeria, where he also coached championship state basketball and track and field teams in addition to launching a major library restoration initiative. After his return to British Columbia, Campbell founded a successful property development firm prior to entering politics.

As premier, Campbell was recognized for his leadership on climate change issues and his reconciliation initiatives with Canada’s First Nations.

He was recognized as a champion of Canada’s highly successful 2010 Winter Olympic

and Paralympic Games in Vancouver and Whistler, British Columbia. Campbell worked to ensure that the 2010 Olympics were not just about

the city of Vancouver, but were a Games that all Canadians could celebrate and call their own.

Campbell brings a reputation for innovation in public policy

and an ability to build and strengthen partnerships to his duties as Canada’s high commissioner to the United Kingdom.

Mr Campbell brings a reputation for innovation in public policy and an ability to build and strengthen partnerships to his duties as Canada’s High Commissioner to the United Kingdom.

Hon. Gordon Campbell | Dominic Schaefer, BiV fileS





Move Towards Green

As a “snapshot” of the increasing move towards

sustainability among the municipalities, NAIOP has included a section within its survey on whether there are any sustainable/green building requirements (beyond the requirements in the BC Building Code) or incentives in place within each municipality. This year more than half (12 of the 20 municipalities that responded) confirmed they have requirements and/or incentives to promote sustainable building. Some were voluntary measures covering different areas of sustainability; others were mandatory actions on particular

items such as alternative energy systems and green (planted) roofs for buildings over a certain size.

Most municipalities now require some form of sustainability reporting as part of their development application, and many of these municipalities are offering incentives including density bonusing, parking reductions, floor area exclusions, community amenity contribution exemption, and fast-tracking the permit process for “green” projects. In future, the expectation is that many of the processes that are now voluntary will be formalized, as municipalities raise the bar on what is considered green.

Most Business Friendly: City of Richmond – for its green building incentives, specifically its zoning bylaw allowance for floor area exemption for green buildings’ mechanical and associated service spaces

Positive Highlight: Four municipalities have lowered their costs

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Move Towards Green

Municipality Development Requirements Green Building Incentives

City of Burnaby Green Building/LEED standards may be determined on a site-specific basis with co-operation of developer. Some reduction in parking for co-op car spaces

City of Langley Sustainability Checklist (required to be completed with RZ/DP/SD application)

City of New Westminster All rezonings and development permits must complete a sustainability report card

City of North Vancouver There are no requirements to achieve green building standard, but rezoning applications are reviewed against a sustainability checklist and encouraged to exceed BC Building Code. Strong incentives encourage greater energy performance through density bonusing

Through the City of North Vancouver's Energy Efficient Buildings Initiative, buildings strive to meet energy efficiency targets beyond those required in the BC Building Code; in return, projects are permitted to slightly increase buildable floor area on the site. For complex buildings, buildings are required to prove to the city with an energy model, enhanced design verification documentation and commissioning report showing compliance with either ASHRAE 90.1-2010 or NECB 2011

City of Port Coquitlam The city has introduced an integrated environmental conservation development permit process to promote energy and water conservation and reduction of greenhouse gas emissions

Conforming industrial or commercial developments that include a green roof may be exempt from development permit fees and qualify for expedited approval

City of Port Moody A Sustainability Checklist for new development is required with all rezoning and development permit applications. This checklist includes an energy efficiency target for new commercial buildings of 25% better than the Model National Energy Code for commercial buildings. This is a council-endorsed energy target

City of Richmond The Green Roof Bylaw requires industrial buildings >2,000 sq. m. to achieve storm water runoff objectives

The Zoning Bylaw includes a floor area exemption for green building mechanical and associ-ated service spaces. The OCP supports provision of electric vehicle charging infrastructure. The City Centre Area Plan recommends that private developments achieve a minimum LEED Silver equivalency and that city facilities are developed and operated in accordance with the city's High Performance Building Policy. The city is introducing District Energy Utility systems, mainly with the City Centre

City of Vancouver Vancouver Building Bylaw has additional requirements and all rezonings require LEED Gold certification with six energy points. See also sustainable building website at: http://vancouver.ca/home-property-development/green-building-and-renovating.aspx

Costs of LEED Gold requirements can be offset with reduction in community amenity contribution fees

District of Maple Ridge Green Building checklist in the Town Centre Area Incentives in the Town Centre Area for LEED certified buildings (municipal tax reductions for six years)

District of North Vancouver Green Building Strategy (required if rezoning or OCP amendment) Density bonus under Green Building Strategy

Municipality of Delta Delta has developed a "Green Growth Index" as a tool to identify the sustainability features of major new development projects. These features are reported to council and secured as part of development agreements as appropriate

Municipality of West Vancouver

The district views development applications that substantially exceed the BC Building Code favourably. The district encourages green building and construction standards for development applications that exceed the BC Building Code

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NAIOP Vancouver Mentorship Program Enters Third Phase

in November 2014, NAIOP Vancouver will launch the

third wave of its very successful mentorship program.

In Phase 1 of the program, which took place from February to June, 2013, 24 mentors were matched up with 30 mentees,

all of whom are NAIOP Vancouver Developing Leaders and 35 years of age or younger. The 24 mentors chosen were all leaders in their respective fields, with much to offer in terms of advice and counsel to the various mentees.

The system was built around a website, in which mentees could choose up to five different mentors for one-hour meetings.

Last fall, we repeated the very successful formula, with another 30 mentees and 24 mentors.

The response from the mentees was overwhelming, with waiting lists from the first phase. The sessions were totally booked within a day of opening. And both mentors and mentees alike say the program wasa very positive experience.

The program was based on a very successful website-based mentorship program in Toronto. NAIOP Vancouver plans to continue the program as long as there is demand for it. A really valuable benefit for our developing leaders and for the mentors, who want to give back to their community.

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NAIOP Vancouver Supports Real Estate Education at UBC and BCIT

Don Harrison, president of NAIOP Vancouver,

announced in May 2014 that NAIOP Vancouver will support real estate students at both the University of British Columbia and BC Institute of Technology over the next five years. Each year, the association will provide up to eight $1,000 awards to UBC students involved in the annual Real Estate Challenge Competition, and NAIOP Vancouver will provide up to two $1,000 awards to students enrolled in the second year of BCIT’s real estate program. The association will also provide complementary memberships to the winning students.

“We are delighted to be in a position to support the students and the real estate academic programs in the Lower Mainland, and we hope that

many of these excellent students will, over time, become meaningful contributors to our industry and members of NAIOP Vancouver,” said Harrison. NAIOP Vancouver will continue its commitment from 2015 to 2020.

NAIOP Vancouver has 260 members on its roster; its membership includes developers, owners and related professionals in office, industrial, retail and mixed-use real estate. It provides strong advocacy, education, business opportunities and business networking through its network of real estate professionals. NAIOP has 55 chapters in Canada, the U.S. and Mexico, and 18,000 members in total; and four chapters in Canada, including Vancouver, Edmonton, Toronto and Calgary.

We are delighted to be in a position to support the students and the real estate academic programs in the Lower Mainland, and we hope that many of these excellent students will, over time, become meaningful contributors to our industry and members of NAIOP Vancouver.

Don Harrisonpresident,

NAIOP Vancouver, 2013-2014

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Commercial Real Estate Awards of Excellence

r E a l E S tat E E x c E l l E n c E a p p l a u d E d

on May 28, the NAIOP Vancouver Chapter in partnership with Business in Vancouver presented the Commercial Real Estate Awards of Excellence at the

Fairmont Waterfront Hotel. The gala dinner and awards celebration recognized excellence in commercial real estate within the Metro Vancouver area for 2012 and 2013. This year, awards were handed out in Office Development, Industrial Lease, Mixed-Use Development, Investment Transaction, Retail Development, Industrial Development, Office Lease and Developing Leader categories.

PhotograPhy: Dominic Schaefer anD Brian Dennehy

NAIOP Vancouver executive director Darlene Hyde with McMillan LLP partner Ernie Hee

Developing Leader nominee and NAIOP

co-chair Jennifer Podmore-Russell with her

father, David Podmore, co-founder, Concert

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2014 Winnersoffice developmentBrewery District – Building 1

Industrial LeaseDamco Lease

Mixed-Use developmentShelter Island Commerce Centre

Investment transactionCascade Aerospace

retail developmentGuildford Town Centre

Industrial developmentGolden Ears Business Park

office LeaseHatch & Coast Capital (co-winners)

developing LeaderCo-founders Jon Buckley, Derick Fluker and David Morris of Form Retail

Rob Macdonald, owner and president, Macdonald Development Corp., emceed

the awards celebration

NAIOP Vancouver president Don Harrison with Commercial Real

Estate Awards of Excellence judge Stephanie Setchell

Graeme Silvera, vice-president, retail development, western region,

for Ivanhoé Cambridge, presents the Industrial Lease award to Todd

Yuen, president, industrial, Beedie Development Group

NAIOP co-chairs Jennifer Podmore-Russell and Ernie Hee

welcome the crowd

O� ce space from 1,100 sf.• Professionally maintained offi ce space • Fully air conditioned offi ce space • Short and long term leases are available • Access to major highways and bridges• Ample parking • Access to fi tness facilities and showers

Stephanie Setchell 604.273.7505 | [email protected]

Stephanie Setchell is licensed with Fraser River Realty Ltd. and has a contractual relationship with Farrell Estates Ltd.

For leasing inquiries, please contact

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Documents

Promotional su PPlement VANCOUVER CHAPTER...Development Association (NAIOP) is pleased to present the 2014 edition of its Commercial Development “Report Card” Fall 2014 Regional