March 2019

Have you renewed your REIBC Membership?

Thank you to those who have renewed their memberships. If you have not yet renewed, your membership will expire on March 31st. You still have time to renew without penalty. Don't forget to login and renew.

If you've forgotten your password you'll need to click on forgot password and you will be prompted to create a new one. If you require any further assistance or have any questions, give us a call at 1-800-667-2166 or 604-685-3702 ext. 103 or email info@reibc.org.

Meet-A-Member

Whether you have years of experience or are new to the industry, REIBC is your key to career advancement and connection with the real estate industry. Professional members have achieved the RI designation, which provides employers and clients with instant confirmation of advanced levels of education and experience.

We've asked REIBC Governor Keith MacLean, RI, to share a little about himself.

Keith MacLean, RI

After spending a few years working in management for the Tourism industry in Tofino and Ucluelet, and surfing as much as I could, I shifted gears and started my real estate career in 2010. The Vancouver Winter Olympics had just ended and the city was still bustling. I joined BC Assessment as an appraiser and have enjoyed my time ever since!

I've worked on a variety of portfolios over the years and in 2017 took over the Senior Appraiser role for the Greater Vancouver Industrial portfolio. Over the last few months I have been in an acting Deputy Assessor role leading a team of over 30 appraisal staff and was one of the media spokespeople when our latest 2019 assessments were released in January.

I have always enjoyed following the real estate market and the opportunity to join BC Assessment gave me the chance to dive deeper into the industry. We have a great team, which is a big part of what makes any job fun. There is never be a dull moment in real estate! I enjoy the exciting task of reviewing ground breaking sales, dealing with complex appraisals, working through significant appeal cases and interpreting the variety of legislation that directs the work we do. Additionally, it is through BC Assessment that I was introduced to REIBC and all of the opportunities that go along with being a professional RI designated member.

I originally joined REIBC to be recognized for the real estate education and experience that I had. Over time this has morphed into maintaining my RI for not only the recognition, but also to be part of an active community of professionals within the real estate sector. I joined the REIBC board in 2016, and helping guide the direction of REIBC in hopes of benefiting our members has been very fulfilling. When I am not at work, I can be found chasing my active toddler, mountain biking, hiking the trails in North Vancouver with my wife, or dreaming of a surf trip to somewhere tropical.

Member news

REIBC Member, Dean LaPointe,RI, was recently selected as a judge for the prestigious FIABCI Prix d'Excellence. FIABC is the French acronym for "Federation Internationale des Administrateurs de Bien-Conselis Immobiliers," which means The International Real Estate Federation.

The mission of this annual worldwide competition is not only creating a platform to reward outstanding building projects but to support the creation of quality built environments. Each year projects are submitted from urban and rural communities whose attributes are based on sustainability, innovation, market-oriented concepts and high-level architecture.

This years awards ceremony will take place in Moscow in May at the annual International Real Estate Federation World Congress. Read the full press release here.

Congratulations, Dean!

REIBC News

This past January a request went out to members seeking volunteers to assist with a few of the Boards strategic initiatives. The request went out for volunteers interested in sitting on the follow task forces and committee: Entrance Requirement Task Force, Non-Dues Revenue Task Force and the Standards and Practice Committee.

We were very pleased with the response from the members and the task forces and committee have been hard at work and will be sending their work forward to the Board for Board approval in early April.

Thank you to the following members, your hard work was greatly appreciated and we hope you had a little fun with the work that needed to be done.

Entrance Requirement Task Force – Wayne Braid, John Castle, Blaine Porsnuk, Scott Veitch

Non-Dues Revenue Task Force – Cindy Nesselbeck, Peter Bretherton, Umesh Chand, Brad Currie, Karen Johnson, Heidi Palmer, Mona Murray, Inder Nijjar, Lita Powell, Janet Scotland, Sheila Sontz

Standards & Practice Committee – Susan Antoniali, Tina Lee, Orville Lim, Sean McGinnis, Edwin Yan

REIBC Events

On March 14th the REIBC hosted a lunch and learn on Retail, Office and Industrial Leasing. It was very informative with very impressive speakers. David Eger, RI; Andrea Fletcher, RI; Perry Gorgounis and Sebastian Espinosa,RI, shared their extensive real estate knowledge for a very entertaining session.

David gave us some interesting stats on the sales transactions over the last few years showing record transactions for 2016, 2017 and 2018; not surprisingly only two hotel deals in 2018. He spoke of record volumes in office deals in 2017 with 90 to 95 office sales, over 220 retail sales and a stellar performance of industrial both in volume and transactions. Transactions in apartments are down after a record high year in 2016 which is not surprising with the significantly low cap rates under 3%. There has been huge increases in residential land being bought up by developers over the past few years; likely less land transactions in 2019 with developers being more cautious.

Andrea’s high energy speech was very entertaining. Retailers are having to be very creative to compete with Amazon and keep up with online shopping. Retail rents are getting crazy in some areas such as Alberni Street in Downtown Vancouver where rents are in the $300’s psf and property taxes are driving retailers out of the market pushing the gross rates towards $400 psf. There are no easy deals in retail. Covenant matters; solid business experience and strong lease indemnifiers is what landlords are seeking, especially in premier locations. The challenges are growing for tenants with landlords asking for demo clauses and lengthy city processes for change of use, in some cases 22 months for a building permit. Retailers are having to keep up to date to survive. Customer experience, entertainment and “ Food, Food, Food”, is the attraction for retail.

Perry Gorgounis starts with “Is Vancouver a One Hit Wonder Bohemian?” Downtown office vacancy is 3.8% with 3.9 M sf under construction, 37% pre-lease and average asking rents at $42 psf. Office vacancy has dropped; greater efficiency in size as less space is required to work in, due to technological changes. Amazon is big and getting bigger, taking more space at 400 West Georgia. The Post building will be at least 50% occupied by Amazon. Unemployment is at 5.8%, a 5 year low, Vancouver GDP at 0.6% is leading the country. Technology continues to grow and Vancouver is the attraction. Why? Least expensive for high quality tech talent, and lower salaries (compared to Seattle, San Francisco, New York, Portland). Vancouver is a great city on the pacific coast.

Sebastian highlighted the industrial side which is in growing demand. BC is Canada’s leading economy with 80 people moving here per day. Cap rates have experienced a downward trend which has been great for sellers. Industrial lease rates have increased by 38% since 2013. North of the river rates are $13 to $15 psf and south is in the low teens ($9.00 shell space). Record high prices were experienced in 2018 for industrial land and lease rates. Land sales have increased by 70% since 2013. Vancouver is a hot market with industrial vacancy at 1.5%. With the limited supply and growing demand, significant sales were recorded in 2018. Expect this market to continue in high demand.

Submitted by Jag Johl, B.Comm, RI, CLO, FRI, Real Estate Investment Analyst – Insurance Corporation of B.C.

Jag graduated from UBC Sauder School of Business, with a Bachelor of Commerce, specializing in Finance. Since 1990 she has worked for ICBC in various roles. Her past role in facilities included negotiating land purchases for claim centres and negotiating office leases. She currently manages the lease negotiations of ICBC’s Investment Properties which includes retail malls, office buildings and industrial properties across Canada. Jag has also served on the Board of Directors for BC Assessment Authority (1992 to 1998), BC Building Corporation (1999 to 2001) and the Real Estate Institute of Canada (1991 to 1996).

Thank you, Jag!

BC Land Summit

Don't forget to register for The 2019 BC Land Summit: Collaborations & Connections taking place at the Westin Bayshore, Vancouver from May 8-10, 2019!

The preliminary program is available, click here to check it out. Registration closes on at noon Friday, May 3rd!

About the 2019 BC Land Summit:

The BC Land Summit is the premier collaborative conference providing interdisciplinary education, professional development, training and networking opportunities for professional practitioners in fields related to land and land-use in British Columbia, and beyond. The BC Land Summit is comprised of five professional organizations; The Appraisal Institute of Canada-BC Association, The BC Society of Landscape Architects, The BC Institute of Agrologists, The Planning Institute of BC and the Real Estate Institute of BC.

Join us in Vancouver - May 8th-10th, 2019 - for this unique conference, with keynote speakers: Sheila Watt-Cloutier, and Edward Glaeser, as well as featured evening entertainment presenter Mark Critch.

REIBC Charity Golf Tournament

The 26th Annual REIBC Charity Golf Tournament is taking place on Wednesday, June 26th, 2019 and we're excited that we're once again at the Richmond Country Club, located at 9100 Steveston Highway, Richmond.

Please contact the office at 1-800-667-2166 or 604-685-3702 ext. 104 if you would like to donate for the live or silent auction!

All monies raised at the REIBC Charity Golf Tournament go to the Make-A-Wish Foundation to give the gift of a wish to kids facing life threatening illness. Click here to read a heart warming story, of Eaden, 16, who suffers from myeloid leukemia. When Eaden was able to take breaks from the hospital visits he realized his passion for fishing so his wish was for a fishing boat.

Upcoming Events

Sharing the history of the Lim Sai Hor Kow Mock Benevolent Association Heritage Building
Walking Tour - April 6, 2019 10:30 am - 1:30 pm
Meet at: 531 Carrall Street, Vancouver
Lunch will be at: Floata Seafood Restaurant
180 Keefer Street, Vancouver
SOLD OUT!!

Webinar: "Back to the Future"
April 25, 2019 12:00 pm - 1:00 pm PST
Guest Speaker: Michael Ferreira, Urban Analytics
Register here

26th Annual REIBC Charity Golf Tournament
June 26, 2019
Richmond Country Club
9100 Steveston Highway, Richmond
Register here

Industry Information

Vancouver Real Estate Forum

The 26th annual Vancouver Real Estate Forum returns on April 4th at the Vancouver Convention Centre West. The Forum will focus on the city’s continuing trends and challenges as it relates to foreign capital, housing affordability, record low vacancies and more. What are the opportunities still present in the market? Where is foreign investment into Vancouver coming from and why? Can municipalities and developers align on producing more affordable housing?

Join over 1,200 executives for a program that will feature some 60 experts and leading practitioners examining the trends and challenges facing those active in the ownership, management, leasing, financing, and marketing of commercial, industrial, investment, and residential real estate.