RETAIL REPORTMETRO VANCOUVER FALL 2016

LEE & ASSOCIATES COMMERCIAL REAL ESTATE (BC) LTD.

lee-associates.com

OVERVIEW

METRO VANCOUVER MARKET

The Metro Vancouver retail market remains stable heading

into Q4 of 2016 despite economic uncertainty over the past

few quarters. In regards to the residential real estate industry;

the changing market conditions are easing upward pressure

on home prices in the Metro Vancouver residential market

which hit its peak number of sales in March 2016. Since March

2016 sales have declined month-to-month with September

2016 data showing a sales-to-active listings ratio of 24.1%.

This is the lowest this ratio has been since February 2015.

This is in large part due to the introduction of the Foreign

Buyer’s Tax of 15% which came into effect August 2nd of

this year. The soaring home prices in Metro Vancouver have

caused the Federal Government to step in and introduce

"mortgage stress tests" which will only allow home buyers

to be pre-approved for a mortgage if they are able to still

make payments if a potential higher interest rate is inputted.

The hope is that this will lessen the risk for defaulting on

mortgages as well as bring the prices of homes back to a

more affordable range.

The BC economy hasn’t shown any signs of fatigue as it lead

the country in employment growth adding 60,000 jobs to the

province during the past twelve months. Retail sales in the

province continue to remain strong, amounting to $6.2 Billion

for the latest read in June which is a 5.2% increase from 2015.

The BC retail estate market continues to show that retail tenants

are evolving into an e-commerce and multichannel approach

to engaging customers. This is seen through the on-going

trend of pop-up stores, particularly in the Vancouver market.

Retailers are using pop-up locations to create awareness and

urgency amongst consumers while simultaneously delivering

a faster and more efficient online shopping experience

through technological advancements in data mining. Another

upcoming trend in the retail market involves online retailers

adding brick-and-mortar stores to their portfolio; even as

online shopping continues to grow, retailers such as Amazon

and Indochino are now opening brick -and-mortar locations.

Retail supply in Metro Vancouver has increased with over

2,000,000 square feet of retail space that has or will be built

out this year and another 4,000,000 square feet coming onto

Sources: Realnet, Statistics Canada, BC Statistics, Lee & Associates Research

BC STATISTICS

VARIABLE Q3 2016 READ TREND

Unemployment Rate 5.5% August q

Total Building Permits $7.676 Billion July p

Retail Sales* $6.2 Billion June p

Consumer Price Index 123.3 June p

Net Population (2016) +0.3% April p

*Seasonally adjusted

CANADA STATISTICS

VARIABLE Q3 2016 READ TREND

Consumer Price Index 128.9 June p

Total Building Permits $47.227 Billion July

CAD/USD $0.758 September q

Prime Lending Rate 2.70% September

Overnight Rate 0.509% September

MACROECONOMIC FACTORS

the market in the next five to six years. The demand for this

supply remains stable as some big box and large format retailers

respond to developer activity in the Metro Vancouver market.

The retail investment market has remained relatively stable

when compared to 2015, with 2016 sales transactions totaling

$1.12 Billion* so far this year. Due to the lack of available supply,

the market recorded just 22 investment transactions between

$5 Million and $10 Million, representing 14% of the total sales

figure. The market saw 23 transactions above $10 Million,

representing 15% of the total sales figure. The most notable

transaction this year was the sale of Royal City Centre in New

Westminster for $114.7 Million.

*Total sales figure represents a YTD transaction volume of $1.12 Billion based on transactions over $1 Million.

GILMORE PLACE BY ONNI GROUP

Gilmore Place is a mixed-use master planned community development in

Burnaby located at the Gilmore SkyTrain Station with the first phase now

underway.

THE CITY OF LOUGHEED BY SHAPE PROPERTIES

The City of Lougheed is a 40-acre master planned community centred around the

current Lougheed Shopping Centre with redevelopment densification of 1.4 million SF

of retail, 1 million SF of office space and on-site residential homes.

LEE & ASSOCIATES VANCOUVER FALL 2016 RETAIL REPORT | 3

CURRENTLY UNDER CONSTRUCTION AND POTENTIAL DEVELOPMENTS | LOWER MAINLAND

DEVELOPER PROJECT NAME MUNICIPALITY RETAIL SIZE NOTABLE TENANTS ESTIMATED COMPLETION

Shape Properties The City of Lougheed Burnaby 1,400,000 SF TBD Q1 2020 (phase 1)

Ivanhoe Cambridge Tsawwassen Mills Tsawwassen 1,200,000 SF Bass Pro Shop, DSW, Saks Off 5th Q3 2016

Shape Properties The Amazing Brentwood Burnaby 547,192 SF TBD Q3 2018 (phase 1)

PDG Tsawwassen Commons Tsawwassen 510,000 SF Canadian Tire, Petsmart, Dollarama Q4 2016

Onni Group Gilmore Place Burnaby 491,000 SF TBD TBD

Smart Centre Central at Garden City Richmond 359,090 SF Walmart, Bed Bath and Beyond, Marshalls Q3 2016

Cressey Kings Crossing Burnaby 138,102 SF TBD Q2 2018

Matsqui Development McCallum Junction Abbotsford 130,000 SF Cabela’s Q4 2016

Onni Group Centreview North Vancouver 90,200 SF Whole Foods, Steve Nash Fitness World Q4 2017

RETRACTING RETAILERS | CANADIAN MARKET

TENANT TYPICAL SQ FT MARKET STORES CLOSING

Sears 130,000 Canada TBC

Golf Town 18,000 Canada TBC

American Apparel 3,000 Canada TBC

Jacob 3,000 Canada 92 stores

Le Château 3,000 Canada 14+ stores

Smart Set 2,000 Canada 107 stores*

Quiznos 800 Canada TBC

*76 of 107 stores will be converted into other Reitmans Canada Limited operated stores

EXPANDING RETAILERS | CANADIAN MARKET

TENANT TYPICAL SQ FT MARKET LOCATIONS*

Costco 150,000 Canada 98+

La Maison Simons 100,000 Canada 17+

Saks off Fifth 30,000 Canada 25+

Nordstrom Rack 30,000 Canada 20+

Urban Barn 8,000 Canada 70+

Pet Valu 3,800 Canada 700+

Rudsak 2,000 Canada 50+

GNC 1,000 Canada 200+

David’s Tea 700 Canada 250+

*Canadian locations post-expansion

PACIFIC CENTRE BY CADILLAC FAIRVIEW

The mall owner proposes to remove the public plaza at the southwest corner of Granville Street and West

Georgia Street to build a three-storey 25,000 square foot addition to Pacific Centre.

lee-associates.com

DOWNTOWN VANCOUVER MARKET

MARKET FORECAST INDICATORS

METRO VANCOUVER

INDICATOR TREND

Vacancy

Net Absorption

New Development p

Rental Rates

Cap Rates q

DOWNTOWN CORE

Vancouver's Downtown core experienced major rejuvenation

with the addition of several luxury retail tenants in 2015.

High-end retail continues to grow in 2016 with Equinox gym,

a luxury mind, body and health centre which is set to open

in the Trump Tower this November. The revamping trend

continues with Pacific Centre submitting a development

application to redevelop the existing plaza and dome located

on the northwest corner of West Georgia and Howe Streets.

The application under review proposes a 25,614 square foot

three-storey addition. The 40,000 square foot expansion of

Holt Renfrew is now complete, bringing the luxury department

store to a total of 187,700 square feet.

Italian luxury brand Prada has opened a three-level flagship

at the southeast corner of Alberni and Thurlow Streets which

is approximately 13,000 square feet. Italian men’s fashion

brand Stefano Ricci will open a 2,600 square foot location

next to Trump International Hotel & Tower Vancouver on West

Georgia Street. Well underway is Tiffany’s 4,700 square foot

second level expansion at the northwest corner of Burrard and

Alberni Streets which replaces the former Japanese restaurant

Kamei Royale. French fashion brand Saint Laurent Paris (Yves

Saint Laurent) recently opened its first freestanding boutique

at 746 Thurlow Street, between Moncler and Prada. The 5,000

square foot, two-level store is one of the chain’s largest in

North America, behind New York and Beverly Hills.

GASTOWN | RAILTOWN

Gastown, historically a renowned destination for tourists, has

evolved into a trendy part of Downtown Vancouver for locals

as well. The retail landscape is rapidly evolving with relatively

low lease rates — compared to other Downtown submarkets

— fueling an influx of boutiques, up-scale restaurants, cafés,

stylish art galleries and unique fashion retailers. Noteworthy

was the opening of Lululemon’s Lab, their conceptual design

retail format that relocated to 50 Powell Street from Broadway

and Cambie earlier this year.

YALETOWN

This submarket is home to some of the city’s best salons,

restaurants and lounges. Proximity to high-density condo

towers as well as the Canada Line SkyTrain station at Davie and

Mainland Streets drive demand in the area. Retro-fit brick and

beam former warehouse buildings now facilitate retail spaces

and quality offices above. Demand for this heritage submarket

remains steady with recent entrants such as BCAA, Nuba,

and Suquet — a new locally based high-end furniture store.

The Vancouver based Mexican taco quick-service restaurant

Tacofino also opened their second location here in July 2016.

BURRARD INLET

ENGLISH BAY

Stanley Park

SunsetBeach

Hadden Park

Vanier Park

George Wainborn Park

David LamPark

NelsonPark

ThortonPark

CreeksidePark

CoopersPark

Andy Livingstone

Park

RobsonSquare

oppenheimer park

portside park

harbour green park

Robson between Thurlow and Hornby boast the highest net rents in Metro Vancouver. Darker regions indicate higher lease rates.

DOWNTOWN VANCOUVER LEASE RATE MAP

LEE & ASSOCIATES VANCOUVER FALL 2016 RETAIL REPORT | 5

LEASE RATE TRENDS | DOWNTOWN VANCOUVERMAP STREET SEGMENT TREND NET RENT PSF

2016*TAX & CAM

2016*MAP STREET SEGMENT TREND NET RENT PSF

2016*TAX & CAM

2016*

Alberni Street p $130 – $160 $15 – $30 Robson Street (Beatty to Burrard) p $50 – $235 $20 – $45

Burrard Street (Georgia to Davie) $40 – $200 $15 – $40 Robson Street

(Bute to Denman) q $50 – $120 $20 – $40

Davie Street p $30 – $65 $15 – $20 Abbott Street (Expo to Hastings) $30 – $50 $15 – $25

Denman q $40 – $75 $20 – $30 Gastown p $20 – $65 $15 – $25

Granville Street (Downtown) p $40 – $125 $15 – $30 Railtown p $15 – $25 $8 – $14

Hornby Street $45 – $180 $20 – $50 Yaletown p $40 – $80 $20 – $30

Robson Street (Burrard to Bute) $120 – $250 $50 – $65 West Georgia p $35 – $175 $20 – $35

*Estimated

lee-associates.com

VANCOUVER MARKET

SOUTH GRANVILLE

South Granville is a sophisticated shopping district where

premier brands have assembled outside of the Downtown

Core. High-end apparel and furniture retailers such as Pottery

Barn, Restoration Hardware, EQ3, and Anthropologie have

established themselves in this affluent shopping district.

There has been some recent activity in the market as higher

rates are forcing some retailers to reconsider their presence

in the market. Typically vacancy rates are very low as retailers

benefit from the central location and high traffic.

KITSILANO (KITS)

Within close proximity to The University of British Columbia,

this area is popular with students and lifestyle conscious

residents who enjoy Kitsilano for its organic food markets,

fashion, eateries and close proximity to beaches along the

south shore of English Bay. New retail tenants to Kits and its

main retail corridor — West 4th Avenue — include a flagship

location for the upscale Australian skincare company

Aesop as well as a new "hyper store" for Flight Centre.

Lululemon is expanding their West 4th location to a total of

6,000 square feet which will include a rooftop patio for yoga.

SOUTH VANCOUVER

There is an emerging sub-market located on Marine

Drive and Cambie Street, in South Vancouver. The city’s

top developers including Onni, Intracorp, PCI and Concord

Pacific have invested heavily in creating a contemporary

neighborhood with over 1,700 residential units, 400,000

square feet of office space and 500,000 square feet of

retail. The most notable development to date has been PCI’s

Marine Gateway connected to the Canada Line Station. This

mixed-use office/retail/residential development opened in

Spring 2016. The retail component is grocery anchored and

co-tenants include Shopper’s Drug Mart, Winners, Cineplex

Odeon, Steve Nash Fitness World, and CIBC.

Further east at the northwest corner of Fraser Street and

Southeast Marine Drive is the Super 8 Hotel site, slated for

mixed use redevelopment with upwards of 15,000 square feet

of new retail.

The most significant new retail development underway

will be Phase 1 of Wesgroup’s 130 acre River District which

will feature approximately 60,000 square feet of grocery

anchored retail. Located along the Marine Drive corridor

between Kerr Street and Boundary Road, this planned

community will serve the growing population within the

South Vancouver–Burnaby region.

NORTH SHORE

The North Shore boasts some of the highest household and

disposable incomes in Metro Vancouver. Park Royal Shopping

Centre dominates the retail landscape of West Vancouver,

where historic Quebec retail giant La Maison Simons has now

opened a 100,000 square foot high-end fashion store. Park

Royal continues to renovate and is currently revamping the

entire North Mall. When completed in early 2017, the North

side of Park Royal will have been de-malled and will feature

a new 25,000 square foot BC Government Liquor Store, a

30,500 square foot Steve Nash Platinum Fitness Club, and a

new 45,000 square foot Loblaws City Market grocery store.

In North Vancouver along Marine Drive, First Capital is

finalizing a 9,000 square foot addition to Amadon Plaza.

Also along Marine Drive, Norgate Plaza has leased 4,500

square feet to Bosley’s by Pet Valu for an end-cap space in

the former Rockford restaurant space.

In Central Lonsdale, Onni Group’s Centerview at 13th

and Lonsdale is being constructed ahead of schedule.

The project, anchored by Whole Foods with co-tenants

Steve Nash Fitness World and Shopper’s Drug Mart, is

slated to open in early 2017. Lower Lonsdale, centered

around the Seabus Terminal at Lonsdale Quay, continues

to experience significant population growth and increased

retail development. The Seabus Terminal itself is slated for

a $12.5 Million renovation to be completed by 2018. The

Seabus carries 16,000 passengers per day from the North

Shore to Downtown Vancouver. Last year Tap & Barrel

opened a 14,000 square foot restaurant inside a 100 year old

building on the Shipyards Site and future additions to the

waterfront area include mixed-use development purposed

for restaurants, retail and a hotel. There are also plans to

build Metro Vancouver’s largest outdoor skating rink.

ENGLISH BAY

F A L S E C R E E KW 4TH AVENUE

VanierPark

Darker regions indicated highe lease rates.

VANCOUVER LEASE RATE MAP

LEE & ASSOCIATES VANCOUVER FALL 2016 RETAIL REPORT | 7

LEASE RATE TRENDS | VANCOUVER MARKETMAP STREET SEGMENT TREND NET RENT PSF

2016*TAX & CAM

2016*MAP STREET SEGMENT TREND NET RENT PSF

2016*TAX & CAM

2016*

Commercial Drive (Venables to 13th Ave) p $30 – $45 $10 – $15 Chinatown p $18 – $35 $10 – $15

South Granville (5th Ave to 16th Ave) $30 – $90 $20 – $35 West 4th Avenue

(Burrard to Alma) $30 – $70 $15 – $25

Kingsway $15 – $35 $10 – $15 West Broadway (Main to Granville) p $22 – $65 $10 – $20

Main Street (Hastings to 28th Ave) p $20 – $50 $10 – $15 West Broadway

(Granville to Alma) $25 – $55 $15 – $20

Cambie Street (2nd Ave to 19th Ave) p $30 – $75 $15 – $30 East Hastings Street p $20 – $40 $10 – $15

Burrard Street $35 - $55 $15 - $20 Fraser Street(Kingsway to King Edward) $25 - $35 $10 - $15

*Estimated

To N

anaimo

To Victoria

BC Ferries Terminal TswawwassenTo Nanaimo

CANADAU.S.A.

BC Ferries Terminal Horseshoe Bay

SeaIsland

Steveston

WesthamIsland

BeachGrove

TilburyIsland

AnnacisIsland

SouthWestminster

Newton

Panorama Ridge

Sullivan

SurreyCentre

Sunny SideAcres

Sunny Side

Douglas

Brookswood

ForestKnolls

FortLangley

Cloverdale

FraserHeights

Whalley

Anniedale

PortKells

Milner

Murrayville

Hoppington

WalnutGrove

Albion

HaneyYennadon

Whonnock

Glen Valley

Bradner

Aldergrove

NorthPoplar

Clearbrooke

Clayburn

Matsqui

Mission City

Hatzic

Dewdney

Steelhead

West Heights

Huntingdon

Yarrow

Greendale

VedderCrossing

Sardis

Rosedale

Harrison Mills

Aberdeen

Ruskin

Guildford

Queensborough

Sapperton

Edmonds

Metrotown

CapitolHill

Deep Cove

CoquitlamCentre

Burquitlam Austin Heights

Maillardville

Mary Hill

DouglasIsland

BarnstonIsland

Lynn Valley

Westridge

Ladner

West Point Grey

Dunbar

Kerrisdale

Oakridge

Marpole Fraserview

Collingwood

Tsawwassen

Lake Errock

Stave Falls

LangleyAirport

University of British Columbia

Vancouver International

Airport

Boundary BayAirport

Simon Fraser University

British Columbia Institute of Technology

AbbotsfordAirport

Pitt MeadowsAirport

CANADAU.S.A.

BOUNDARY BAY

MUD BAY

FRASER RIVER

PIT LAKE

CULTUS LAKE

STAVE LAKE

ALOUETTE LAKE

LOUGHEED HIGHWAY

FRASER RIVER

BUNTZEN LAKE

COQUITLAMLAKE

ENGLISH BAY

BURRARD INLET

CAPILANOLAKE

Aldergrove Lake

Regional Park

Campbell ValleyRegional Park

Sumas MountainRegional

Park

Sumas MountainRegional

Park

Cultus Lake Provincial Park

Rolley LakeProvincial Park

Derby ReachRegional Park

Golden EarsProvincial

Park

Cypress Provincial Park

LighthousePark

Lynn Canyon

Park

Lynn Headwaters

Regional Park

Mount SeymourProvincial Park

Belcarra Regional

Park

Indian ArmProvincial

Park

Pinecone Burke

Mountain Provincial

Park

UrbanForest

Water Shed Park

North DeltaNature Reserve

Deas IslandRegional Park

Green TimbersUrban Forest

Park

Bear CreekPark

TyneheadRegional Park

Central Park

Burnaby Mountain

Park

Colony FarmRegional Park

SurreyBend Regional

Park

Pacific SpiritRegional Park

Burnaby LakeRegional Park

Boundary BayRegional Park

Deer LakePark

ST

RA

IGH

T O

F G

EO

RG

IA

INDIA

N AR

M

Stanley Park

Queen Elizabeth

Park

MundyPark

Fraser IslandsRegional Park

Res.

NORRISH

CR

EE

K

CHEH

AL

IS R

IVER

CHILLIWAC K RIVER

WESTVANCOUVER

42,694

NORTHVANCOUVER

84,412

CITY OFNORTH VANCOUVER

48,136

RICHMOND190,470

DELTA100,571

BURNABY223,220

VANCOUVER603,502

COQUITLAM126,456

NEWWESTMINSTER

65,976

PITTMEADOWS

17,736

PORTCOQUITLAM

55,958

PORTMOODY32,975

ANMORE1,496

BELCARRA716

SURREY468,251

MAPLE RIDGE76,052

MISSION31,272

ABBOTSFORD133,497

LANGLEY104,177

CHILLIWACK77,936

KENT

WHITE ROCK19,339

lee-associates.com

METRO VANCOUVER MARKETS

SUBURBAN MARKETS OVERVIEW

The suburban markets have seen significant retail and residential growth over the past year, most notably Tsawwassen and Burnaby. With the exception of high demand lease opportunities in close proximity to rapid transit stations or major arterials, the overall tone of retail leasing activity in the suburban markets has retailers cautiously evaluating new opportunities.

BURNABY | NEW WESTMINSTER

Shape Properties continues their redevelopment plans for North Burnaby’s Brentwood Mall and are now also focused on the redevelopment of the Lougheed Town Centre Mall. “The City of Lougheed” will be Canada’s largest new master-planned community spanning 40 acres in size. The community will include up to 10,000 homes in 23+ high-rise towers, two SkyTrain lines directly on site and over 300 new shops and restaurants. A formal rezoning application for the first phase in the project has now been put forth by Shape Properties. The first phase will include a 55-storey, 566-unit residential tower on the northwest corner of North Road and Austin Avenue.

On Burnaby’s western boundary, Onni is in the planning phases of constructing phase one of their Gilmore Place development at Gilmore Avenue and Lougheed Highway, next to Gilmore SkyTrain station. Comprised of over 12 acres of land, Onni anticipates 500,000 square feet of newly constructed retail space in addition to a large quantity of residential apartments on site.

New Westminster continues to see strong multifamily residential growth and with it, increased demand from consumers. Uptown (Sixth Street & Sixth Avenue) continues to be the most desirable area for retailers. In lower New Westminster, Bosa Development purchased the 1.6 hectare plot at 660 Quayside Drive — between Westminster Pier Park and the Fraser River Discovery Centre — from Larco earlier this year and are going forth with a multi-tower residential and commercial project on the undeveloped waterfront site. The completed project will consist of either two or three residential towers and will also include a stand-alone building for a restaurant and a daycare facility.

RICHMOND

Richmond is experiencing extensive residential development particularly in the Oval Neighbourhood (North West Richmond) and along No. 3 Road with urban villages clustering around the Canada Line transit stations. The No. 3 Road corridor is transforming from a long stretch of strip malls into a growing parade of high-rise residential and commercial buildings. Lease rates along the transit routes have seen sharp increases with the demolition of older existing retail and the development of mixed-use projects.

The Oval Neighbourhood, bordered by No. 3 Road, Westminster Highway, the Fraser River and No. 2 Road has experienced extensive residential high-rise development. When fully built-out, the area will total approximately 15,600 residential units and house 35,500 residents with a mix of office and retail.

The recently opened McArthurGlen Outlet Centre is preparing for an expansion that will nearly double the size of the current 240,000 square foot centre to add an additional 200,000 square feet by 2018. The expansion has caught the eye of multiple global retailers as well as retailers who were unable to obtain space in the first phase of the development.

The newest arrival to the retail scene in Richmond is the imminent grand opening this Fall of Smart Centre’s “Central at Garden City” comprising 359,090 square feet of retail anchored by Walmart at Alderbridge Way and Garden City Road. Co-tenants include Marshall’s, Discount Shoe Warehouse, Bed Bath & Beyond and Bosley’s by Pet Valu.

To N

anaimo

To Victoria

BC Ferries Terminal TswawwassenTo Nanaimo

CANADAU.S.A.

BC Ferries Terminal Horseshoe Bay

SeaIsland

Steveston

WesthamIsland

BeachGrove

TilburyIsland

AnnacisIsland

SouthWestminster

Newton

Panorama Ridge

Sullivan

SurreyCentre

Sunny SideAcres

Sunny Side

Douglas

Brookswood

ForestKnolls

FortLangley

Cloverdale

FraserHeights

Whalley

Anniedale

PortKells

Milner

Murrayville

Hoppington

WalnutGrove

Albion

HaneyYennadon

Whonnock

Glen Valley

Bradner

Aldergrove

NorthPoplar

Clearbrooke

Clayburn

Matsqui

Mission City

Hatzic

Dewdney

Steelhead

West Heights

Huntingdon

Yarrow

Greendale

VedderCrossing

Sardis

Rosedale

Harrison Mills

Aberdeen

Ruskin

Guildford

Queensborough

Sapperton

Edmonds

Metrotown

CapitolHill

Deep Cove

CoquitlamCentre

Burquitlam Austin Heights

Maillardville

Mary Hill

DouglasIsland

BarnstonIsland

Lynn Valley

Westridge

Ladner

West Point Grey

Dunbar

Kerrisdale

Oakridge

Marpole Fraserview

Collingwood

Tsawwassen

Lake Errock

Stave Falls

LangleyAirport

University of British Columbia

Vancouver International

Airport

Boundary BayAirport

Simon Fraser University

British Columbia Institute of Technology

AbbotsfordAirport

Pitt MeadowsAirport

CANADAU.S.A.

BOUNDARY BAY

MUD BAY

FRASER RIVER

PIT LAKE

CULTUS LAKE

STAVE LAKE

ALOUETTE LAKE

LOUGHEED HIGHWAY

FRASER RIVER

BUNTZEN LAKE

COQUITLAMLAKE

ENGLISH BAY

BURRARD INLET

CAPILANOLAKE

Aldergrove Lake

Regional Park

Campbell ValleyRegional Park

Sumas MountainRegional

Park

Sumas MountainRegional

Park

Cultus Lake Provincial Park

Rolley LakeProvincial Park

Derby ReachRegional Park

Golden EarsProvincial

Park

Cypress Provincial Park

LighthousePark

Lynn Canyon

Park

Lynn Headwaters

Regional Park

Mount SeymourProvincial Park

Belcarra Regional

Park

Indian ArmProvincial

Park

Pinecone Burke

Mountain Provincial

Park

UrbanForest

Water Shed Park

North DeltaNature Reserve

Deas IslandRegional Park

Green TimbersUrban Forest

Park

Bear CreekPark

TyneheadRegional Park

Central Park

Burnaby Mountain

Park

Colony FarmRegional Park

SurreyBend Regional

Park

Pacific SpiritRegional Park

Burnaby LakeRegional Park

Boundary BayRegional Park

Deer LakePark

ST

RA

IGH

T O

F G

EO

RG

IA

INDIA

N AR

M

Stanley Park

Queen Elizabeth

Park

MundyPark

Fraser IslandsRegional Park

Res.

NORRISH

CR

EE

K

CHEH

AL

IS R

IVER

CHILLIWAC K RIVER

WESTVANCOUVER

42,694

NORTHVANCOUVER

84,412

CITY OFNORTH VANCOUVER

48,136

RICHMOND190,470

DELTA100,571

BURNABY223,220

VANCOUVER603,502

COQUITLAM126,456

NEWWESTMINSTER

65,976

PITTMEADOWS

17,736

PORTCOQUITLAM

55,958

PORTMOODY32,975

ANMORE1,496

BELCARRA716

SURREY468,251

MAPLE RIDGE76,052

MISSION31,272

ABBOTSFORD133,497

LANGLEY104,177

CHILLIWACK77,936

KENT

WHITE ROCK19,339

METRO VANCOUVER POPULATION MAP

LEE & ASSOCIATES VANCOUVER FALL 2016 RETAIL REPORT | 9

*PCensus 2013 Estimate **Average Household Income, 2013 Estimate

MUNICIPALITY POPULATION* MED. AGE* AVG. INCOME**

Coquitlam 136,202 39.8 $87,995

Port Moody 36,579 38.0 $104,521

Port Coquitlam 59,972 38.7 $98,424

Pitt Meadows 19,298 39.0 $93,172

Mission 38,727 38.5 $81,765

Maple Ridge 81,888 39.9 $96,230

City of Langley 26,635 39.8 $65,640

Township of Langley 112,496 40.0 $110,579

Abbotsford 142,881 37.0 $84,904

Chilliwack 84,872 39.0 $79,860

METRO VANCOUVER DEMOGRAPHICS

MUNICIPALITY POPULATION* MED. AGE* AVG. INCOME**

Vancouver 636,534 38.9 $88,663

West Vancouver 44,508 50.2 $196,433

City of North Vancouver 51,267 40.5 $79,815

District of North Vancouver 88,303 43.2 $126,445

Burnaby 240,171 39.0 $79,424

New Westminster 71,594 40.7 $79,499

Richmond 204,327 41.5 $81,899

Delta 104,911 42.6 $101,059

Tsawwassen 739 50.2 $142,066

White Rock 20,300 54.0 $82,685

Surrey 517,417 37.1 $96,557

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SUBURBAN VANCOUVER MARKET

DELTA | LADNER | TSAWWASSEN

Two of the largest retail projects currently in Metro Vancouver

are Tsawwassen Mills and Tsawwassen Commons which are

developed in tandem by Ivanhoe Cambridge, The Property

Development Group and Tsawwassen First Nations. Tsawwassen

Mills recently opened on October 5, 2016 and Tsawwassen

Commons is set to open Q4 2016. The projects are situated at

the intersection of Highway 17 and 52nd Street and will add

1,710,000 square feet of retail space to Tsawwassen. Wilderness

themed retail giant Bass Pro Shop will anchor the Mill site with a

180,000 square foot location while Walmart, Canadian Tire, Tim

Hortons, and PetSmart will anchor Tsawwassen Commons.

PORT MOODY | COQUITLAM | PORT COQUITLAM

Metro Vancouver’s northeast sector is growing in anticipation

of the Evergreen Rapid Transit Line. As a result, all the nearby

communities are benefitting including Port Moody with even

more high-rises in the town centre.

Coquitlam Centre continues to thrive along with neighbouring

strip centres. The Westwood Mall anchored by the Real

Canadian Superstore is underway with renovations which also

features the introduction of a new 8,000 square foot UFC

Gym (the first in Metro Vancouver) alongside their sister club

Steve Nash Fitness World which renewed and renovated.

In Port Coquitlam, a new retail development at Maryhill Bypass

and Broadway is now under construction. The development

will include three buildings totaling 13,500 square feet. Tenants

already confirmed for the retail convenience centre are A&W,

Starbucks, and Subway.

SURREY

With over 1,000 new residents welcomed every month,

Surrey continues to be one of the fastest growing markets in

Canada. Surrey Central City is currently transitioning into a

densely populated commercial node with numerous mixed-

use projects slated for construction over the next five to ten

years. Concord Pacific’s Park Avenue West project is currently

under construction and will be completed in Q2 2017. The

second phase of PCI’s King George Station is getting traction

and proposes a mixed-use development which will include

approximately 350,000 square feet of retail space and

450,000 square feet of class ‘A’ office space. Phase One is

now completed and is anchored by Coast Capital Savings’

new head office with over 700 employees. Additional phases

of the development may include 1,200,000 square feet of

residential space.

In South Surrey, Grandview Central Shopping Centre is in

the final stages of construction and when finished will be

anchored by the recently opened Real Canadian Superstore

and co-tenants Goodlife Fitness and Shopper’s Drug Mart.

These retailers will join a market of over 1,000,000 square

feet of existing retail within a one kilometer radius of the

southeast corner of 24th Avenue and 160th Street.

LANGLEYLangley is made up of several shopping districts with

Willowbrook remaining the largest at 200th Street and the

Langley Bypass. Activity in Willowbrook includes renovations

to Wesgroup’s Langley City Square which will feature new

contemporary building facades, improved access and parking.

Meanwhile, Willowbrook Mall has revealed plans to expand

Langley’s largest shopping centre to include a new 140,000

square foot outdoor mall on the northwest side of the

property. Along with more retail space, restaurants and

places for shoppers to relax, the developer envisions a Park

Royal Village feel. The site will add 1,000 more underground

parking stalls and most of the work will take place where the

old Target has sat empty since 2015.

ABBOTSFORDAbbotsford’s most notable new retail development is Matsqui

Development’s McCallum Junction project located on the

northeast corner of Highway 1 and McCallum Road. The

130,000 square foot development is anchored by outdoor

recreation merchandiser Cabela’s, who opened their 70,000

square foot location in June 2016. The entire project is slated

to be completed in Q4 of 2016.

On Abbotsford’s western boundary, Forever 21’s sister brand

F21 RED will open its first Western Canadian store this fall.

The 15,000 square foot store will compliment Highstreet

Shopping Centre’s 600,000 square foot open-air plaza at

Mount Lehman Road and Highway 1, anchored by Walmart,

London Drugs, H&M, Steve Nash Fitness World, Milestone’s,

and Ciniplex VIP Cinema.

THE AMAZING BRENTWOOD BY SHAPE PROPERTIES

The Amazing Brentwood, located in North Burnaby, is a mixed-use development

that will house over 1.1 million SF of retail space and 500,000 SF of office space.

Scheduled completion: Q2 2018.

LEE & ASSOCIATES VANCOUVER FALL 2016 RETAIL REPORT | 11

NOTABLE TRANSACTIONS

NOTABLE RETAIL SALE TRANSACTIONS | 2016PROPERTY ADDRESS | NAME MUNICIPALITY PRICE SIZE (SF) PRICE

PER SFPURCHASER(S)

Royal City Centre New Westminster $114,700,000 361,386 $317 Share Sale - Dava Developments Ltd.

Peninsula Village Shopping Centre Surrey $78,250,000 170,706 $458 Share Sale - First Capital Realty Inc

Mission Junction Mission $68,050,000 282,533 $241 Share Sale - LaSalle Investment Management

1818-1862 West Broadway Vancouver $56,250,000 37,500 $1,500 1077003 B.C. Ltd –Canadian Private Investor

950 West Broadway Vancouver $46,000,000 25,000 $1,840 Hometop Enterprises Ltd.

The Wilson Block Vancouver $38,250,000 75,155 $509 Bonnis Properties Ltd.

Central Plaza Shopping Centre White Rock $29,000,000 50,000* $580 Landmark Premiere Properties Ltd.

3695 Lougheed Highway Vancouver $13,300,000 8,914 $1,493 3695 Lougheed Highway Ltd. – Private Investor

*Estimated

NOTABLE RETAIL LEASE TRANSACTIONS | 2016PROPERTY ADDRESS | NAME MUNICIPALITY TENANT SIZE (SF)

Park Royal * West Vancouver Steve Nash Fitness World 28,740

948-950 Homer Street* Vancouver Kokko 21,750

1308 Lonsdale Avenue* North Vancouver Steve Nash Fitness World. 21,000

34150 South Fraser Way* Abbotsford Get Air 18,000

1606 West Broadway Vancouver Kohler 5,000

1150 Robson Street Vancouver Eddie Bauer 2,500

830 Thurlow Street Vancouver Cali Burger 2,200

805 Thurlow Street Vancouver RYU 1,100

*Brokered by Lee & Associates

RETAIL INVESTMENT SNAPSHOT METRO VANCOUVER

2015JAN-SEP

2016JAN-SEP TREND

Number Of Trades* 183 153 q

Transaction Volume* (CAD)

$1.189 Billion

$1.120 Billion

*Number of trades and transaction volume are based on trades over $1 Million

Source: Realnet, Lee & Associates Research

Lee & Associates Vancouver475 West Georgia Street, Suite 800Vancouver, BC V6B 4M9 tel 604 684 7117 | fax 604 684 1017

This report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, Lee & Associates can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to Lee & Associates.

© 2016 Lee & Associates Vancouver

FOR INQUIRIES PLEASE CONTACT

Hayley AdamsResearch Associate, Retail604 630 3059hayley.adams@lee-associates.com

RETAIL MARKET REPORTMETRO VANCOUVER FALL 2016

Sean OgilvieVice President604 630 3402email: sean.ogilvie@lee-associates.com

Neil S McAllister Personal Real Estate CorporationSenior Vice President604 630 3374neil.mcallister@lee-associates.com

LEE & ASSOCIATES RETAIL TEAM

Andrea FletcherSenior Associate604 630 3398andrea.fletcher@lee-associates.com

Russell Long, BA, DULESenior Associate604 630 3059russell.long@lee-associates.com

Howard Malchy Personal Real Estate CorporationVice President604 895 2226howard.malchy@lee-associates.com