Two Downtown Vancouver Office Buildings Bought By Torontoâ€™s Allied Properties REIT

Toronto Investment Firm Buys Vancouver Office Building for $225 Million
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(Posted on Oct 31, 2018 at 08:23PM by Michelle Bogle)

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Toronto-based Crestpoint Real Estate Investment has acquired a Class A office building for approximately $225 million â€“ more than $1,000 per square foot. The 19-story building with five ground level retail units, located at one of Vancouverâ€™s busiest intersections at the corner of Robson Street and Burrard Street, was previously owned by Oxford Properties and CPP Investment Board. The office building is fully leased to the Canadian government while the retail component is leased to brandâ€name national and international tenants, including Lululemon.Â

This deal follows after Crestpoint recently acquired a 53 percent stake in a similar office property in Montreal. That building sold for $300 per square foot, or less than a third of what they paid for 800 Georgia Street in Vancouver.

According to Kevin Leon, President of Crestpoint, the price discrepancy between the two markets relates to liquidity. â€œIn downtown Vancouver, there is a limited supply of land, and it's very attractive to foreign capital,â€ said Leon in an interview. â€œThere will always be an exit price if the market goes south. Right now, the market in Montreal is great, but sometimes you can't sell a building.â€

For more information or insight into this recent benchmark sale or to discuss office investment opportunities across the Lower Mainland, please contact us at Marcus & Millichap to speak with a commercial real estate advisor.

Report: Vancouver Remains a Primary Destinations for Investors
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(Posted on Oct 31, 2018 at 08:18PM by Michelle Bogle)

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According to a recent report, the strength of Canadaâ€™s investment market is proving very strong for 2018 with sales data appearing exceptionally good in Vancouver.Â

Looking back to Q2 2018, commercial real estate transactions hit a record $16.5 billion across the country with Toronto attracting $5.7 billion worth of deals and Vancouver accounting for $3.2 billion.

In B.C., two major investment trusts are responsible for driving nearly half the national volume in the second quarter â€“ Canadian REIT, who owns 1185 West Georgia and 1508 West Broadway, and Vancouver-based Pure Industrial Real Estate Trust. The purchase of Investors Groupâ€™s nine office properties in Metro Vancouver was also a driving factor in significantly increasing local investment volumes, along with growing suburban office deals outside of the cityâ€™s centre.

The market has proven to be as busy as ever â€“ and the pipeline of transactions continues to show signs of benchmark numbers for the remainder of the year. Apartment properties are steadily gaining investor demand, and this trend is likely to continue with the provinceâ€™s recent announcement of a 4.5% annual allowable rental increase for 2019.

If you are an investor looking to gain a foothold in Vancouverâ€™s prime commercial real estate market, please contact our team at Marcus & Millichap to speak with an investment sales and financing professional.

New Oxford Propertiesâ€™ Tower to Ease Vancouverâ€™s Tight Office Market
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(Posted on Oct 29, 2018 at 01:44PM by Michelle Bogle)

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Rising 530 feet in the air, Oxford Propertiesâ€™ The Stack is making news as one of the largest office developments currently underway in Vancouverâ€™s downtown core. The building is being poised as a project that will add much-needed supply to the cityâ€™s tight office market, which currently sits at 4.7% (as of Q2 2018) â€“ the second lowest of any major North American market.

Located at 1133 Melville Street, The Stack is being classified as a AAA class 540,000 sq. ft. office development. It has already attracted pre-leases from a number of high-quality firms, including Ernst & Young LLP, Blakes, and DLA Piper. Demolition is currently underway at the site and construction is set to begin in Q1 2019 with completion in Q1 2022.

Designed in collaboration between James Cheng Architects and Adamson Associates Architects, The Stack's climbing, twisting box design sets a new standard for architectural excellence in Vancouver. Offering unobstructed panoramic views of the city and mountains, the building will blend wellness and community into one with the inclusion of six outdoor decks, a pocket park and a rooftop patio.Â

More information about The Stackâ€™s design and leasing opportunities can be viewed here. To learn more about this new office development, please contact our Marcus & Millichap office in Vancouver, B.C., to speak with our team of advisors.

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New Coworking Office Coming to Vancouverâ€™s Gastown
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(Posted on Jan 3, 2017 at 08:17PM by Michelle Bogle)

Regus, one of the largest providers of office space in the world, is opening a new coworking office in Gastown, catering to the unique needs of freelancers and start-ups in Metro Vancouver.

Regus has leased the Ormidale Block at 151 West Hastings and is currently underway with a full rebuild of the six-storey structure, retaining only the existing faÃ§ade. Under the brand name Spaces, Regus is hoping to open their doors by summer of this year, making it the first Canadian location with Toronto soon to follow.Â

The office space, which can accommodate up to 450 people, will include a mix of team rooms, open format coworking stations and individual desks, as well as a business club and large rooftop patio, which will be available to paying members 24 hours a day.Â

Aside from daily workspace, Regus is also hoping to build a sense of community with Spaces. As such, they have designed a large open community space on the top floor. â€œOur plan is to hold many networking events, bring in keynote speakers and bring in people from the community that we can really build into the Gastown and Vancouver market,â€ says Wayne Berger, executive vice-president with Regus Canada.

This type of space is sure to be a welcome addition to Vancouverâ€™s commercial office market, especially as the number of self-employed Canadians is encroaching towards the two million worker mark, according to Stats Canada. A large portion of these freelancers reside in the Lower Mainland within the tech and start-up community, as well as the creative design community.

To learn more about Spaces or other coworking office developments across British Columbia, please feel free to contact Marcus & Millichapâ€™s Vancouver office to speak with a commercial real estate associate. You can also view our current listings by clicking here.

City Seeks Higher Density for Mount Pleasant Heights' Tech Sector
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(Posted on Dec 30, 2016 at 02:00PM by Michelle Bogle)

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According to a recent Vancouver Sun article, the City of Vancouver is planning to allow increased density of four city blocks in the Mount Pleasant industrial zone, which is home to some of the Lower Mainland's most successful tech firms.Â

Earlier this month, council voted to refer the plan to a public hearing in the new year. If approved, the move would allow higher office buildings in the four blocks facing Quebec Street from East 2nd Avenue to East 6th Avenue to accommodate companies in the innovation sector.

Kent Munro, the cityâ€™s Assistant Director of Planning for Midtown, said much of the change reflects the catching-up of municipal zoning to a rapidly evolving industry.Â

The zoning changes proposed by the city will allow buildings on most of the blocks to keep their I-1 industrial zoning on the ground floor, but to also account for an increase of office/tech-use space on the higher floors.

Currently, buildings in the zoning are only allowed to have a floor area double that of theÂ area that the land sits on, with a maximum height of 32.9 metres. Under the new plan, buildings along most of the strip in the proposal would be allowed a floor area five times the parcel size, with some at a maximum height of 45.7 metres.

This change would allow many companies to operate in one place, which is currently not the norm right now. Many firms, such as Hootsuite (Vancouverâ€™s largest tech firm), are spread across multiple offices and sites, which can be a challenge for daily operations and future growth.

Our team at Marcus & Millichap Vancouver is keeping a close eye on the plans for Mount Plesantâ€™s industrial zone and how it will impact our booming tech sector. For more information or insight, please feel free to contact us to speak with a commercial real estate advisor.

6 Reasons Itâ€™s Time to Find a New Office
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(Posted on Oct 26, 2016 at 01:00PM by Michelle Bogle)

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Deciding to move your office doesnâ€™t always come down to expanding or downsizing â€“ itâ€™s so much bigger than that.

Choosing an office location is as much a part of your overall business strategy as is setting your yearly goals and objectives â€“ itâ€™s a process that must fit your companyâ€™s fiscal, human resources, brand and cultural objectives. Simply put, itâ€™s an important factor in the overall success of your venture.

Having said that, here are six reasons why it might be time to find a new office:

Your operations have outgrown your current space

Whether you have five employees or 500, your office must comfortably accommodate all of your workforce. And, if youâ€™ve been fortunate to experience growth throughout your operations, then you likely need more space â€“ and fast.Â

As a general rule of thumb, most industries allocate approximately 175 of rentable square feet (RSF) per employee or perhaps even more. If you have 50 employees, you should designate at least a minimum of 8750 RSF for your new office space.

Your office space is too large

On the flip side, you may find that you have too much office space, which can put a strain on your bottom line, as well as your employeesâ€™ productivity and morale. If you find yourself in this situation and have no plans of expanding your operations in the near future, it might time to consider a downsize.Â

Youâ€™re having issues with building management

Just like with a residential rental property, a bad landlord or building manager can really hurt your overall experience. If you find that your current office is in disrepair, neglected or constantly having issues, like with the HVAC system, washrooms and elevators, it might be time to move on to greener pastures. After all, if you and your employees are frustrated with these issues, you clients are likely picking up on them too.Â

Your office is stuck in another era

Thanks to a change in work styles, mobile technology and the growing presence of Millennials in the workplace, offices are changing â€“ and for the better. Closed off layouts are now a thing of the past with open floor plans and collaborative areas springing up in their place.Â

And, prospective employees are on the look-out for these types of office spaces â€“ which is why it might be time to consider an office move, so you can create a vibrant workplace environment and culture that attracts and retains talent and clients too.Â

Your location is poor

Choosing the location of your office is likely more difficult than selecting a neighbourhood to live in because you have more people to factor into the equation â€“ like your management team, employees, vendors, clients and maybe even your competition. And, perhaps, when you first selected your site location, it made sense for you and your business. But, what if your business objectives have changed? If your current location is hindering these goals and objectives, it may be time to consider a move to a better location.

You are tired of paying monthly office rental expenditures

In terms of investment potential, rental office spaces offer businesses zero gains â€“ the only players that benefit are the landlord or asset owner. If you are tired of paying monthly office rental costs, it might be time to consider another option: strata office.Â

This asset class is becoming increasingly popular with smaller professional services firms or self-employed entrepreneurs who are seeking an alternative from rental spaces that offer zero gains. Low interest rates, strong price-per-square-foot growth, increasing lease rates and opportunities to build equity are all key perks of strata office.

If you can relate to the six reasons listed above, then perhaps itâ€™s time you get serious about planning your next office relocation. And, at Marcus & Millichap Vancouver, we can help.Â

We have several highly skilled office and industrial asset specialists on our team who can help you understand your space requirements and find you an office location that suits your needs and your bottom line.Â

To learn more, please contact us here or visit our Property Search portal for active commercial real estate listings across British Columbia.

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Strata Office is Quietly Outperforming the Strata Apartment Market
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(Posted on May 26, 2016 at 06:00PM by Michelle Bogle)

Move over apartment market â€“ there is a new hot performer in Vancouverâ€™s bustling real estate market and thatâ€™s strata office.Â

With $280 million worth of sales in the last two years, office condos are quietly outperforming the apartment market. In fact, some office condos are even selling for more than their residential counterparts.Â

In 2015, office strata sales totaled $120 million â€“ thatâ€™s double the sales volume from five years earlier. Even though this number was down from the peak achieved in 2014, which saw $160 million of condo office sales, it wasnâ€™t from lack of interest, but more from lack of inventory.Â

This asset class is becoming increasingly popular with small professional services firms and self-employed entrepreneurs, such as doctors, who are seeking an alternative from rental spaces that offer zero gains.Â Low interest rates, strong price-per-square-foot growth, increasing lease rates and opportunity to build equity are driving factors behind this growing trend.

Much like home ownership, strata office ownership is a solid investment in your financial future. To learn more about office condo developments within the Vancouver Metro Area, please contact us to speak with our office asset specialists.Â