To ensure delivery, please add firstname.lastname@example.org to your address book, learn how
October 16, 2013
Next Big Thing in Surrey?
Thereâs been a lot of talk about the level of growth in Surrey. (Didn't you see it in TMZ?) We asked Downtown Surrey Business Improvement Associationâs Elizabeth Model what we can expect next.Â
Elizabeth tells us the latest announcement is a hotel partnership for 3 Civic Plaza, Surrey's first mixed-use hotel and residential project with Autograph Collection, part of the Marriott International global portfolio. Downtown commercial real estate accounts for a significant amount of the overall development, she tells us. The hotel announcemenet is a big step. ""We needed a first-rate hotel," she says. "The way they have configured it around retail and office is the way they are developing in Vancouver now--all mixed-use."
With a population of 500,000, Surrey is BC's fastest-growing city, expected to overtake Vancouver in 10 to 15 years. (Begin practicing humility now, so you'll be ready by then.) Having the second-lowest business tax level in Metro Vancouver is certainly an incentive. So expect more announcements on the commercial real estate front. The new luxury hotel will feature 144 rooms, a lobby-based cafe, fine dining, fitness and pool facilities, and convention space. Including its premium residences and professional offices, 3 Civic Plaza and Civic Hotel is the largest private project in Surrey.
Modest Industrial Gains
There was no repeat of Q2's dramatic rise in vacancy. But we're not back to normal yet. (Good news, meet bad news.) A Colliers International report on the Metro Vancouver industrial market for Q3 showed that market conditions improved modestly. Absorption turned positive, and an additional 254k SF of industrial space was occupied. However, the region's vacancy rate continued to increase as demand was unable to offset the 713k SF increase in supply. (Did someone forget to text supply and tell we're all set for the moment?) Colliers industrial senior associate Stefan Morissette (right, with colleague Andrew Lord) tells us what this means.
With the slowdown in leasing, landlords have been forced to offer low-incentive lease rates, he says. And Richmond and Delta--historically two of Metro Vancouver's strongest industrial markets--have seen an increase in vacancy again this quarter. Above is 3676 Bainbridge Ave in Burnaby, one of the more notable lease deals in the third quarter (48k SF to Seaforth Supply Chain Solutions). We'll wait to see what Q4 has in store.
Meanwhile, in Other Bisnow Cities...
Every now and again, we like to keep you informed about the other cities Bisnow covers. Yesterday in Boston, we met with the chairman of the Federal Reserve Bank there. While we root for Federal Reserve chairs in every city, we give a little extra hurrah to Kirk Sykes, since he comes from the commercial real estate community. (It'd be like a broker becoming manager of the Blue Jays. Whichever team you support, you'd wish him the best.)
A licensed architect, a developer, and fund manager, Kirk is prez of the $190M USA Fund, a division of the New Boston Fund. It's sponsored 15 development projects on the East Coast. These projects, and his work at the Fed, encourage middle-income household formation in cities by providing housing that average people can afford and places they can work. The tricky part: including the ownership options (for under $300k) that are essential to build stable communities. He says the Fed job has given him a chance to do public service and nudge the economy.
"In the commercial real estate business, brokers spearhead major accounts. But they wouldn't have customers without the people who oversee construction." - Roger Staubach. What's your favorite real estate quote? Tell email@example.com.