Royal LePage Commercial Inc. - Third Quarter 2005 Market Overviews

RLP Q3 Office Market Overview

Changing Dynamics: Vancouver market heats up

Vancouver Office Leasing Experienced A Very Positive 3rd Quarter.

The Vancouver office market continues to be red hot with high demand and no developments coming online over the short term. Vancouver’s overall office vacancy rate decreased this quarter to 9.14% from 10.16% in Q2 2005. Vacancy has been on declining since Q1 2004 with no sign of reversing.

Matching the loss of available space is the continued rise in rental rates. This quarter’s net effective rental rates are estimated to have raised $2 to $3 per square foot from Q3 2002. The market’s lack of product, with no new office space or new office building developments on the horizon, is moving Vancouver to a “landlord’s market”.
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RLP Q3 Industrial Market Overview

Active and Moving Forward

INDUSTRIAL LEASING & NEW CONSTRUCTION

The industrial leasing market is experiencing a slight rise in vacancy this quarter, as the rate has changed from 2.1% last quarter to 2.3%. A significant portion, almost half, of the newly completed buildings, are speculative. As a result of limited new supply coming available, the demand for new construction continues to be strong. Tenants are also moving into previously purchased design build buildings, leaving behind available lease space. Although there is slightly more lease space available, rental rates are going up due to low vacancy, strong demand, and increased land and construction costs.
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