1545 West 8th Avenue – An eight storey, 18 unit development with two levels of underground parking was recently approved by the Development Permit Board.  The project, by Kenstone Properties, will be 23 metres in height and will have a 3.0 FSR.

Plan to redevelop North Delta Inn property put on hold.

DELTA – A controversial redevelopment proposal that would result in the construction of highrises in North Delta is on hold.

According to Delta’s planning department, the applicant behind the project for the North Delta Inn property has put the submission on the back burner until design plans are once again revised.

Colliers has released their Q2 2012 retail market report. The retail market in Metro Vancouver has been consistently active with many landlords, retailers and investors experiencing the benefits of a high-priced market.

Highlights from the report:

• The overall vacancy rate for Metro Vancouver increased from 2.7 percent in Q4 2011 to 3.9 percent this quarter
• Accounting for the majority of increased vacancy is Chilliwack moving from 4.3 percent in Q4 2011 to 10.9 percent this quarter, Richmond moving from 1.9 percent in Q4 2011 to 6.2 percent this quarter.
• Deal velocity remained consistent so far this year with many lower priced properties trading hands, while deal volume has slowed
• The federal government increased duty-free limits for cross-border shopping, which went into effect on Jun 1, 2012, putting further pressure on Canadian retailers

Source: Colliers International

West Vancouver has long been recognized as an affluent, limited-growth, high barrier to entry market among all asset classes. As a result, there has been a limited amount of transaction activity over the past several years. Valuations remain stable with continued growth as a result of lack of new supply and increasing rental rates. Current market dynamics for each asset class in West Vancouver are summarized below:

Office

Office space in West Vancouver comprises only a fraction of that available on the North Shore and is limited primarily to a handful of buildings in the Marine Drive and Bellevue areas. The balance of available space is typically in smaller strata or mixed use buildings which reflects the demand base of professional and medical services.

There have been few office transactions in this market, with pricing for larger freehold assets typically ranging in  the $450-500 per sq ft range, with cap rates of between 5.0-6.0%.

Retail

Retail continues to be in high demand in West Vancouver as an investment, particularly due to the ongoing demand on behalf of retailers to be part of this market and no new opportunities to develop. Well established nodes include Park Royal, the Marine Drive corridor, Dundarave Village and Caulfield Village Shopping Centre.

Retail assets that have traded over the past 5 years have typically been streetfront retail, with most sales occurring in the Marine Drive area. Cap rates for retail tend to be between 5.0% and 6.0% in this market, and have exhibited average prices as follows:

Apartment

The lack of sales activity for multifamily assets in West Vancouver reflects the desirability of the market from an income perspective, particularly given high demand spurred by prohibitive housing costs in the area, an aging population, and lack of opportunities for new development.

Apartment buildings that have traded have typically been at capitalization rates around 4.0% and at prices per unit of approximately $300,000 depending on the age of the building.

Bellevue Tower, 195 21st Street, a 126 unit concrete highrise apartment tower sold in June 2010 to Hollyburn Properties for $36,500,000, 3.8% cap rate.

Quick Facts on Apartment Market:

• Overall vacancy rate is 0.6%
• Overall average rent is $1,462
• 2,329 total private apartment units (not including rented condos)
• 2.1% average rent growth in 2010

Source: CMHC

For information on current opportunities in this market, contact Simon or David.

According to Colliers’ Q2 2012 Metro Vancouver Office Market Report, the Metro Vancouver office market maintained its stability once again this quarter, with the
vacancy rate decreasing minimally from 7.7 percent last quarter to 7.6 percent this quarter.

Q2 highlights:

• The Metro Vancouver vacancy rate decreased minimally from 7.7 percent in Q1 2012 to 7.6 percent in Q2 2012
• The Downtown Vancouver vacancy rate decreased to 3.5 percent this quarter, down from 3.8 percent last quarter
• Investment activity Downtown was reasonably strong, with the sale of Bentall V and several significant firms deals in place
• The Suburban vacancy rate remained unchanged from last quarter at 11.2 percent and the market as a whole was relatively slow
• Broadway Tech Centre Building 6 commenced construction this quarter after it was revealed that Golder Associates preleased approximately 130,000 square feet