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 Posté le: Lun Sep 02, 2013 2:17 pm Sujet du message: Commercial real estate report: City core's office |
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{Commercial real estate report: City core's office vacancy rate up but still below national average}
Jason Mah,Michael Kors Outlet, Avison Young office division vice-president: “the trend is for companies to look toward highrise towers near transit because they want to retain and recruit talent”|Richard LamBy Glen KorstromTue Aug 20, 2013 12:01am PSTDowntown Vancouver's office vacancy rate has risen during the past year, but industry observers believe there's a lot of pent-up demand for space in planned new office towers.Avison Young's mid-year office market report revealed that downtown Vancouver's office vacancy rate rose to 4.6% at the end of June, up from 3.3% one year earlier. That's below the Canadian average office vacancy rate of 5.6% for major cities' downtown cores and far below the 8% threshold that signifies a balanced market. Like all major Canadian cities, Metro Vancouver's suburban office vacancy rate was substantially higher (10.1%) than its downtown counterpart.Jason Mah, vice-president of Avison Young's office division, said there are several suburban office parks that have high vacancy rates."The trend is for companies to look toward highrise towers near transit because they want to retain and recruit talent."Mah added that the downtown vacancy rate is lower because few office towers have been built in the city core in the past decade and the landlocked city centre is largely developed so most new towers must be on redevelopment sites."Looking back, we have also taken some of the office supply out of the market with conversions to residential buildings, so we're still feeling a bit of the impact of that," added Mark Chambers,Michael Kors Handbags Outlet, who is senior vice-president at Cushman Wakefield.Major Vancouver office buildings that have been converted to residential use include the former Westcoast Energy and Duke Energy building (Qube) on West Georgia Street in 2005 and the former BC Hydro headquarters (Electra building) on Burrard Street in 1998."We're definitely due for an office building construction cycle," Chambers said.Colliers International senior vice-president of office leasing Maury Dubuque agreed.His firm tracks what it considers Vancouver's eight AAA class buildings. Combined, those structures are an average of 22 years old."Building technology has radically improved in 22 years," he said, "and the way people work is radically different from the way they worked 22 years ago."Executives increasingly want to shrink office space and costs as employees telecommute and increasingly work in shared spaces instead of in walled offices, he said.Demand for new space in seven downtown towers in various stages of development is also driven by executives' demand for LEED (leadership in energy and environmental design) buildings and their energy savings.Each new tower seems to aspire to an ever-higher LEED certification category.Credit Suisse and SwissReal Group, for example, received a City of Vancouver development permit on August 12 to build a $200 million, 400,000-square-foot tower at the corner of Howe and Pender streets that is LEED platinum – the highest designation from the Canada Green Building Council.Telus Corp. and Westbank are building the only other LEED Platinum office tower in the city: the 500,000-square-foot Telus Garden office building that will be part of a mixed use development in the block bounded by Robson, Georgia, Seymour and Richards streets.Other towers, such as Bentall Kennedy's 370,000-square-foot tower under construction at 745 Thurlow Street, Oxford Properties' 270,000-square-foot MNP Tower at 1021 West Hastings Street and Cadillac Fairview's 280,000-square-foot tower above the future Nordstrom department store on Granville Street, are all set to be built to LEED core and shell gold certification.Manulife's 250,Michael Kors Handbags,000-square-foot BGC Engineering tower, newly under construction, and the 100,michael kors canada,000-square-foot tower that Jim Pattison Developments and Reliance Properties Ltd. propose to build at the corner of Burrard and Drake streets are both expected to be built to LEED gold certification."There's a perception out there that there's a flood of space coming on the market and it will send the downtown Vancouver vacancy rate through the roof," said Chambers."We see demand coming from outside the market and from growth and new projects so I don't think the new towers will have a significant impact on that rate."Tags: sustainability, Reliance Properties Ltd., Canada Green Building Council, real estate, energy, energy saving, Leadership in Energy and Environmental Design, Jim Pattison, engineering |
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