Office Market Discussion

[raggedy13]

A bit of an update...

According to Avison Young:

Vancouver (as of Dec. 31/08)...

Downtown (Class A): 1.4%
Downtown (all classes): 2.5%
Metro (all classes): 5.4%

[sacrifice333]

I guess those figures don't include available sublets?

[djh]

^How do those numbers compare to the previous month, and to the same month a year previous? That's the only way we can determine the trend.

[jlousa]

NOTICE OF PUBLIC HEARING
Dear Sir and/or Madam:
RE: Proposed Amendments to the Downtown Official Development Plan (DODP) and HA-3 District Schedule On Tuesday, April 21, 2009 commencing at 7:30 p.m., in the COUNCIL CHAMBER, THIRD FLOOR, CITY HALL, 453 WEST 12TH AVENUE, the Council of the City of Vancouver will hold a PUBLIC HEARING, pursuant to the provisions of the Vancouver Charter, to consider the above-noted and other amendments to the Zoning and Development By-law. This public hearing has been deferred from its original date of Tuesday, February 17, 2009.
If approved, the rezoning would amend the Downtown Official Development Plan (DODP)by increasing the maximum permitted density for non-residential uses in Areas A, B, C1 and F by 2.0 FSR; by removing residential as a permitted use in areas C1 and F; by requiring a minimum of 2.0 FSR for non-residential uses in areas C3 and H; and by revising the names of various
areas within the Downtown Official Development Plan to correspond to the proposed amendments. Furthermore, the HA-3 (Yaletown Historic Area) District Schedule would be amended to increase the maximum permitted density for non-residential uses to a maximum of 5.0 FSR and require 1.5 FSR of non-residential in all new developments. Map 1 (Areas affected by the zoning changes) below outlines where the proposed zoning changes would
apply. In addition to the proposed zoning changes, two policies have been proposed. The first is a DODP Rezoning Policy that will provide guidance for commercial intensification of the CBD and CBD Shoulder (DODP areas A, B, C1, C3, F & H). The second is an Office Conversion Policy to be used for the evaluation of inquiries and applications for conversion of siginificant,
existing office space to residential use in areas of the Downtown where zoning provides the opportunity for both residential and commercial. This policy would apply to Yaletown (HA-3), Gastown (HA-2) and mixed use areas of the downtown (DODP areas C2, C3, G & H). Map 2 (Areas affected by the proposed policies) below indicates where the proposed policies would
apply. At the PUBLIC HEARING, you or any persons who deem themselves affected by the proposed by-law amendment shall be given an opportunity to state their opinion or concerns to City Council. If you wish to speak, please register individually by telephone before 5 p.m., April Page 2 of 4
21, 2009, by calling Tarja Tuominen in the City Clerk's Department at 604-873-7191. You may register in person at the door between 7:00 p.m. and 7:30 p.m. before the Hearing.
The draft by-law may be inspected in the Planning Department, Third Floor, East Wing of City Hall, or in the office of the City Clerk, Third Floor of City Hall, 453 West 12th Avenue, from 8:30 a.m. to 4:30 p.m., Monday to Friday, on and after April 9, 2009. The staff report is available at: http://vancouver.ca/ctyclerk/cclerk/documents/p1.pdf
If you have contracted to sell or lease all or part of your property to any person, firm, or corporation, we strongly urge you to deliver this courtesy notification letter, as soon as possible, to the prospective buyer or tenant.
If you have any questions or would like to discuss the draft by-law with City Planning staff, please call Ian MacPhee at 604.829.4228.

Yours truly,
Ian MacPhee
Planning Assistant
Central Area Planning

[jlousa]

In case anyone is wondering there is now over 1Million sqft of office space available in the city. That's the same as three office towers.
Found the following link a very good read, I'm sure a few members will be surprised by the data in it.

http://vancouver.ca/commsvcs/plannin...h/mythfact.pdf

[EdinVan]

Originally Posted by jlousa

In case anyone is wondering there is now over 1Million sqft of office space available in the city. That's the same as three office towers.
Found the following link a very good read, I'm sure a few members will be surprised by the data in it.

http://vancouver.ca/commsvcs/plannin...h/mythfact.pdf

Interesting facts, if they can be verified as such. But there's a defensive tone in that document that is offputting.

[Spork]

They fail to mention that the City of Vancouver is one of the few cities in North America that doesn't have an economic development strategy (source: somebody doing contract in City Hall that I met at a banquet in this same area). And the point of 1.3% vs. 2.2% in Toronto is moot. It almost sounds like they are defending this because we aren't the major commercial centre in Canada. Change that! Don't accept the status quo!

[Vancity]

Originally Posted by Spork

They fail to mention that the City of Vancouver is one of the few cities in North America that doesn't have an economic development strategy (source: somebody doing contract in City Hall that I met at a banquet in this same area). And the point of 1.3% vs. 2.2% in Toronto is moot. It almost sounds like they are defending this because we aren't the major commercial centre in Canada. Change that! Don't accept the status quo!

AGREED!

[SpongeG]

its always gonna be this way

[Vancity]

it doesn't have to be. change is possible, albeit, sometimes slower than we'd like, but we don't have to accept the status quo. why doesn't the COV develop an economic development strategy plan, so that we can eventually become one of the major commercial centres in north america.

[officedweller]

The Myth vs Fact tone screams "Damage Control".

WRT jobs fleeing to the suburbs - a continuing growth rate in downtown Vancouver can mask departures from the downtown.
i.e. way back, the former MacBlo left Cathedral Place for the suburbs;
last year Catalyst Paper left downtown for Richmond;
Terasen Gas' corporate office is in Surrey, only the parent holding company's office is at 1111 West Georgia;
Did someone say that Bell Canada's offices are now at Broadway Tech Park?;
EA has closed its downtown presence (Black Box);
Remember when 701 West Georgia was the IBM Tower?

[EdinVan]

Isn't Weyerhauser still at Cathedral Place?
And isn't Bell still at Bentall 5, considering the new logo on the roof?

[EdinVan]

Originally Posted by SpongeG

its always gonna be this way

So long as we continue to have old, conservative, smugly complacent civil servants at City Hall.

[officedweller]

Originally Posted by EdinVan

Isn't Weyerhauser still at Cathedral Place?

Thanks - checked into it on-line and the move was nixed then they were taken over by Weyerhauser:

http://wikimapia.org/7651260/Telus-Glenlyon

Telus Technology & Operations
9100 Glenlyon Parkway
Burnaby, BC
Completed in 1998, this $6 Million 2 storey, 56,000 square foot office building was to be the new head office for MacMillan Bloedel Limited (en.wikipedia.org/wiki/MacMillan_Bloedel) to reduce costs by moving out of the Vancouver downtown business core to the Burnaby suburb. Instead, MB moved from it's own building at 1075 West Georgia one block east to Cathedral Place (925 West Georgia), and Telus took occupancy of the building.

And isn't Bell still at Bentall 5, considering the new logo on the roof?

I recall one of the forummers mentioning that Bell is located at Broadway Tech Park and subleases the Bentall V space. Don't know if that has changed or how much space Bell retains if any (sounds like 3 floors are subleased, but Bell could retain 1 flor in Phase 1 of the tower).

http://www.avisonyoung.com/library/p...LJuly23,08.pdf

Worth noting is that some of the current vacancies are actually leased,
and others have been recently occupied. These include Bell Canada’s
sublease space in Bentall V, of which Gowlings Lafleur Henderson LLC
has committed to 35,000 sf for third quarter 2008 occupancy and
Macquarie Bank has occupied 17,600 sf;

http://www.colliers-international.co...rketReport.pdf

At Bentall V, Bell Canada subleased 2 of
their 3 floors (a total of 35,000 square
feet) to Gowling Lafleur Henderson LLP
this quarter, and gave the 24th floor back
to the landlord, who then secured a headlease
deal with Macquarie Bank for 17,600
square feet. With this space off the market,
Bentall can boast 0% vacancy for Bentall V.

[djh]

http://news.bbc.co.uk/1/hi/entertainment/8039769.stm
***

Pixar to open studio in Vancouver
Page last updated at 10:05 GMT, Friday, 8 May 2009 11:05 UK


Disney/Pixar is to launch an animation studio in Vancouver, Canada this autumn to handle its non-feature projects.

According to president Ed Catmull, the "small in size" operation will focus on short-form computer animation for DVD, theme parks and television exhibitions.

Work in Vancouver will concentrate on "legacy characters" like Woody and Buzz Lightyear from the Toy Story movies.

Feature films and all stereoscopic 3-D work will remain based at Pixar's main HQ in Emeryville, California.

"We have a somewhat unfulfilled demand," Pixar general manager Jim Morris told the Hollywood Reporter.

Facility

"We wanted to do various things with Toy Story to keep the characters alive. People like to see them somewhat regularly."

Pixar, whose other hits include Finding Nemo and Wall-E, currently employs around 1,000 people at its main studios.

According to Morris, the staff at the new facility is expected to be no more than a tenth of that number.

Disney/Pixar's latest animated movie, Up, will be unveiled next week at the Cannes Film Festival in France.

3D versions of Toy Story and its sequel will be distributed later this year ahead of next summer's release of Toy Story 3.

[SpongeG]

Downtown Vancouver office space hit by ‘negative absorption’


VANCOUVER — Vancouver companies in the first half of 2009 have vacated from, downsized out of or made available through sublease downtown office space equivalent to a new office tower, according to research from a major commercial broker.


This "negative absorption," as commercial realtors call it, was the result of corporate contraction in the face of recession, commercial realtor Avison Young said in its mid-year report and helped push Metro Vancouver's overall office vacancy rate up to 7.4 per cent at mid-year compared with 5.4 per cent at the end of 2008.


"This pause in leasing demand and crisis of confidence, which began in the latter half of 2008 when the global credit crunch intensified, pushed up vacancy levels in nearly every submarket during the first half of 2009," Darrell Hurst, principal with Avison Young in Vancouver, said in a news release.


Avison Young broker Matthew Craig said that downtown, office tenants left some 487,775 square feet of more office space surplus than they leased, which is "roughly equivalent to the size of a new office tower."


Downtown's office vacancy crept up to five per cent at mid-year compared with 2.5 per cent at the end of 2008.


However, Craig added that the offices left vacant were mostly smaller spaces in second-tier buildings.


"Worth noting is that that there are no notable large-sized tenant defaults to date despite the global credit turmoil," Craig said.


Vacancy rates for the largely institutionally owned top-tier buildings, Craig added, remain "at or below prevailing market rates."


Hurst said that even with businesses weathering the "current economic tailspin," Metro Vancouver's office leasing market is still one of the tightest in North America.


He said the effect of rising vacancies, particularly of subleases where tenants are willing to let out some space on a temporary basis, has been to give new tenants more choice and put downward pressure on rents.


"Competing with attractively priced sublease opportunities, some landlords are now more aggressive in securing quality tenants and maintain existing ones," Hurst said.


depenner@vancouversun.com

http://www.vancouversun.com/business...858/story.html

[raggedy13]

According to CBRE, Vancouver 2Q 2009 is as follows:

Core (DT+Bway)= 26 msf = 63.7% centralized
DT Vacancy = 4.7% (4% for AAA)

Suburban = 14.8 msf = 36.3% decentralized
Suburban Vacancy = 11.3%

Metro = 40.8 msf
Metro Vacancy = 7.8%

http://www.cbre.ca/EN/Our+Offices/Br...et+Reports.htm

---------------------------------------

Additionally, this is the first time in three quarters that vacant sublease space has decreased, which is good. Though CBRE expects negative absorption to continue overall for the remainder of the year. We're still looking in pretty good shape compared to a lot of American cities based on what I've seen in the City Discussions subforum.

[officedweller]

2008 BC Assessment Office Roundtable:

http://www.bcassessment.bc.ca/pdf/pu...l%20freeze.ppt

http://www.bcassessment.bc.ca/businesses.asp

[raggedy13]

According to CBRE, Vancouver 4Q 2009 is as follows:

Core (DT+Bway)= 26 msf
DT Vacancy = 5.8% (5.4% for AAA) - down from 6.0% in 3Q 2009.

Suburban = 15 msf
Suburban Vacancy = 12.8%

Metro = 41 msf
Metro Vacancy = 9.1%

http://www.cbre.ca/EN/Our+Offices/Br...et+Reports.htm

Also, vacant sublease space has decreased for the third quarter in a row.

[red-paladin]

Hopefully this means Bentall 6 is a go.

I did email about Metrotower III and they told me it was not canceled, only delayed. I guess they wanted to make sure they had enough tenants. All three towers together are going to look like a massive black block from most angles.