JLL• Rapid Transit Office Index • Q3 2014 Surrey Surrey remains a tale of two markets as transit-oriented vacancy is 14.3% lower than buildings further than 500 meters from the nearest station Surrey RTI Q3 2014 Q3 2013 Change Total Vacancy 7.9% 9.5% -1.6% Direct Vacancy 3.3% 3.2% +0.1% Sublease Vacancy 4.6% 6.3% -1.7% Average Asking Net Rate $24.35 $23.37 +$0.98 Average Additional Rent $12.16 $10.83 +$1.33 12 Month Outlook Total Surrey RTI Supply: 1,121,869 sq. ft. Surrey ORTI Q3 2014 Q3 2013 Change Total Vacancy 22.2%* 20.6% +1.6% Direct Vacancy 21.5%* 18.9% +2.6% Sublease Vacancy 0.7% 1.7% -1.0% Average Asking Net Rate $17.99 $16.30 +$1.69 Average Additional Rent $9.92 $10.02 -$0.10 • than twice as high as the vacancy in Q1 2013 (3.2%) as Coast Mountain Bus Company has struggled to sublease the majority of 60,000 square feet in Station Tower next to Gateway Station that they vacated as part of TransLink’s 2013 consolidation to The Brewery District in New Westminster. • RTI vacancy is 14.3% less than that of ORTI buildings, while average asking rates for transit-oriented buildings are 35.4% higher than those without direct access to rapid transit. • Coast Capital Savings’ future 113,000 square foot head office in PCI’s King George Station multi-phase mixed-use development, which accounts for 65.8% of the office space in Phase A and approximately 26.5% of the total potential office space, remains on schedule for Q4 2015 completion. Construction of Phase B, which will include 160,000 square feet of office space in addition to 230,000 square feet of retail space and 450 residential units, could commence as early as Q2 2015. • The completion of King George Station Phase A in Q4 2015 and Bosa Properties’ Gateway Place in Q2 2016 will increase transit oriented office supply in Surrey by 20.7%. • SCDC, Century Group and ZGF Cotter Architect’s 3 Civic Plaza mixed-use development at Surrey Central Station will include 50,000 square feet of office space, 30,000 of which have been purchased by Kwantlen Polytechnic University for a new campus. The development is projected to be completed as early as Q4 2016 and will be located at the proposed future intersection of three Light Rail Transit lines that lead to Guildford, Newton and Langley. • *The Surrey ORTI database includes the 700,000 square foot RCMP E Division building in the Green Timbers site. If this building were omitted, ORTI vacancy would be 27.2%. 12 Month Outlook Total Surrey ORTI Supply: 3,758,817 sq. ft. RTI Peaking Market Rising Market Falling Market RTI Vacancy declined by 1.6% over the past year but remains more Bottoming Market ORTI Jones Lang LaSalle (JLL) Real Estate Services, Inc. 21st Floor, 400 Burrard Street Vancouver, BC V6C 3A6 Tel: +1 604 998 6001 Fax: +1 604 998 6018 www.jll.ca Office Leasing Investment Ray Ahrens* Executive Vice President Office +1 604 998 6002 Cell +1 604 418 2790 [email protected] Gavin Reynolds* Senior Vice President Office +1 604 998 6009 Cell +1 604 760 6447 [email protected] Mark Chambers* Executive Vice President Office +1 604 998 6005 [email protected] Jon Ramscar** MRICS Senior Vice President Office +1 604 998 6031 Cell +1 778 985 6879 [email protected] Andrew Laurie Senior Associate Office +1 604 998 6008 Cell +1 604 329 1122 [email protected] Scott MacDonald Sales Associate Office +1 604 998 6020 Cell +1 604 440 4969 [email protected] Ronan Pigott Associate Office +1 604 998 6004 Cell +1 604 360 8445 [email protected] Kevin Douglas Associate Office +1 604 998 6142 [email protected] Brodie Cain Research Associate Office +1 604 998 6143 [email protected] About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.ca. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them. *Personal Real Estate Corporation **Sales Representative