Burnaby Office Leasing Report – April 2010

The Burnaby Office Market enters the second quarter of 2010 with a vacancy rate of 13% up slightly from last quarter, of interest though is that the class “A” vacancy has increased to 14.6%, and the market is quickly approaching a million square feet vacant as vacancy increased another 80,000 square feet last quarter with negative absorption in all building classes.

AVAILABLE SPACE SUMMARY

AS OF April 26, 2010	NUMBER OF BUILDINGS	TOTAL OFFICE AREA (SQ. FT.)	DIRECT AVAILABLE AREA (SQ. FT.)	DIRECT AVAILABLE RATE (%)	SUBLET AVAILABLE AREA (SQ. FT.)	SUBLET AVAILABLE RATE (%)	TOTAL AVAILABLE AREA (SQ. FT.)	TOTAL AVAILABLE RATE (%)
GREATER VANCOUVER MARKET	669	50,852,579	4,267,795	8.4	1,087,250	2.1	5,355,045	10.5
SUBURBAN DISTRICT	285	18,818,019	2,426,836	12.9	623,983	3.3	3,050,819	16.2
BURNABY NODE	122	9,459,719	978,593	10.3	246,719	2.6	1,225,312	13.0
CLASS A	67	6,464,189	740,627	11.5	206,373	3.2	947,000	14.6
CLASS B	42	2,434,749	163,966	6.7	38,535	1.6	202,501	8.3
CLASS C	13	560,781	74,000	13.2	1,811	0.3	75,811	13.5

While vacancy rates continue to climb due to new inventory there is still very little velocity in the tenant market with many companies remaining in the status quo or contemplating right sizing.

AS OF Q1 2010	NUMBER OF BUILDINGS	TOTAL OFFICE AREA (SQ. FT.)	TOTAL OCCUPIED AREA (SQ. FT.)	VACANT & LEASED (SQ. FT.)	SUBLET VACANT AREA (SQ. FT.)	DIRECT AVAILABLE VACANT (SQ. FT.)	CHANGE IN OCCUPIED AREA. FROM PREV. QTR (SQ. FT.)	CHANGE IN OCCUPIED AREA. FROM PREV. YEAR (SQ. FT.)
Greater Vancouver MARKET	669	50,852,579	46,006,171	189,825	949,552	3,707,031	-198,777	-964,836
Suburban DISTRICT	285	18,818,019	15,987,865	95,325	492,038	2,242,791	-107,020	-714,454
Burnaby NODE	122	9,459,719	8,236,003	95,325	226,348	902,043	-80,295	-307,757
CLASS A	67	6,464,189	5,505,336	95,325	196,946	666,582	-49,006	-189,719
CLASS B	42	2,434,749	2,243,886	0	29,402	161,461	-14,114	-68,282
CLASS C	13	560,781	486,781	0	0	74,000	-17,175	-49,

As to options for tenants, again in all categories tenants have more options available to them with 150 space greater than 10,000 square feet and 50 options that could accommodate a minimum of 50,000 sf.

Tenant Options Report

COMPARISON OF LEASING OPTIONS FOR TENANTS
OFFICE SPACES AT SELECTED NODES (Market – District – Node – Class)		AVAILABLE SPACE			AVAILABLE RATE
	NUMBER OF BUILDINGS	BUILDINGS WITH MORE THAN 50,000 SF	BUILDINGS WITH MORE THAN 10,000 SF	NUMBER OF SPACES BETWEEN 4,000 TO 8,000 SF	DIRECT %	SUBLET %	TOTAL %
Greater Vancouver MARKET	669	18	150	182	8.4	2.1	10.5
Suburban DISTRICT	285	14	74	79	12.9	3.3	16.2
Burnaby NODE	122	7	28	33	10.3	2.6	13.0
CLASS A	67	7	18	16	11.5	3.2	14.6
CLASS B	42	0	7	10	6.7	1.6	8.3
CLASS C	13	0	3	7	13.2	0.3	13.5

Burnaby Facts

~9,459,719 square feet office space
13.0 % vacancy with ~1,225,312 square feet currently available
~ 845,000 square feet under construction
Class “A” survey of occupancy cost psf/annum $35.91

The Leasing Facts

18, up from 5 Buildings with more than 50,000 sf
150 opportunities with over 10,000 sf as of April 2010

Statistically Burnaby is moving significantly towards a highly competitive market with the vacancy rate continuing to rise, the number of opportunities for tenants is increasing drastically and very few active qualified tenants. It is a crucial time to consider a focused leasing team dedicated exclusively to an owner’s property and working exclusively in the owner’s interest will become more and more important as competition for new and existing tenants will become fierce.

RGD Commercial Realty Advisors offers a unique focused approach to marketing and should you want more information on the office market, or a marketing proposal for your asset we would like to talk to you.

RGD Commercial Realty Advisors Inc.

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Burnaby Office Leasing Report – April 2010