A rezoning proposal has been put forward to develop a phased commercial development at 2020 Boundary Road, a site the Northeast corner of Lougheed and Boundary Road in Burnaby. Translink sold the site last year to the Open Road Auto Group for $19.2 Million.

The development will consist of:

• two or three high-end auto dealerships
• a 4-storey fully enclosed glass structured car parkade
• an 8-storey, 85,000 SF office building with underground parking and grade level retail uses
• a total density of 0.77 FAR

The auto dealerships are proposed to be the first phase of the development, with the commercial uses later.

Valuations are getting so high in Vancouver’s commercial market it is starting to affect deal flow, says a new report.

RealNet Canada Inc. says capitalization rates — the implied rate of return on a property — in British Columbia have gone so low that a 13% decline in sales in the first quarter can be attributed to the drop. The lower the cap rate, the more a property is worth.

“Transaction volumes experienced declines as the general market adjusts to changing value expectations in a record low cap rate environment,” said Paul Richter, director of research with RealNet, in the report. “Investment activity experienced a decline, however, demand for quality assets and development sites remains high.”

RealNet said there was 217 transactions of more than $1-million in the Vancouver market in the first quarter which amounted to $1.06-billion in activity. That was sharply down from the more than $1.2-billion in activity in the fourth quarter of 2012 but still 10% above the long-term quarterly average.

Construction on Telus’ new Downtown Vancouver headquarters is now progressing above ground. The 22-storey complex is scheduled to be complete in early 2015.

Telus Office Tower Construction

All photos courtesy of Built Form on SSP.

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238 Fell Avenue, a 2-storey retail and office complex on the East side of Fell Avenue in North Vancouver has sold for $2,300,000. The building is a total of 7,232 SF in size, representing $318 per SF. The building had been listed for $2,600,000.