North Shore ReportFall 2008

Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal or other changes without notice and same should not be relied upon without independent verification. DTZ Barnicke Vancouver Limited, Real Estate Brokerage 10/2008

Matt Thomas(604) 630 3396Matt.Thomas@dtzbarnicke.com

Rand Thomson(604) 630 3393Rand.Thomson@dtzbarnicke.com

DTZ Barnicke Vancouver Limited800 - 475 West Georgia StreetVancouver, BC, Canada V6B 4M9Tel: (604) 684 7117 Fax: (604) 684 1017

Investment OverviewThe commercial real estate market continues to show reasonable strength in British Columbia, despite the growing pessimism migrating its way from the United States to the rest of North America. Many leading economists believe the worst of the current financial “crisis” affecting the U.S. will abate by mid-2009 when modest growth will start to allow the economy to gain back some of its recent losses.

Capilano Village located at 801 Marine Drive (and Fell Ave.) sold in April. This 32,600 square foot strip mall commanded a $14,900,000 price, equating to a 6% capitalization rate. We anticipate that CAP rates will continue to rise in the coming months before settling out at approximately 6.75% to 7.25% on stabilized income. For now, the days of high valuation, sub-5% capitalization values are behind us.

Retail OverviewThe North Vancouver retail lease market remains strong. Base rates range from $15 to $45 per square foot depending on several factors including exposure, age, parking, proximity to transportation and most importantly, frontage on major shopping streets such as Lonsdale Avenue and Marine Drive.

Office OverviewThe vacancy rate has dropped by 8.3% since the end of 2006 and currently stands at 3.4%. Outside of Downtown Vancouver, the North Shore vacancy rate is the lowest compared to any other area in Metro Vancouver.

The former North Shore News building at 1133 Lonsdale Avenue is slated for completion in the Fall of 2009. The four-story building will add over 21,000 square feet to the office market and 7,000 square feet of ground floor retail space just south of 13th & Lonsdale.

Industrial OverviewLease rates for Industrial properties jumped significantly in the past two years, largely due to the rapid rise in land values and decreasing supply, particularly on the North Shore. As an example, Phase IV of the Northwoods Business Park, which is slated for completion Spring 2009 is being marketed at $15/sq. ft. shell rates. High land prices and lease rates are a function of the lack of product available on the market. Within the last 4 months there has only been one industrial sale reported.

801 Marine Drive sold in April 2008 for $14,900,000

Financial Indices Data for the period ofBank of Canada 3.25% 09/30/08Benchmark Bond Yield: 5Y 3.17% ↑ 09/30/08Benchmark Bond Yield: 10Y 3.75% ↑ 09/30/08CAD / USD $0.9397 ↑ 09/30/08CAD / EURO €0.6701 ↑ 09/30/08

Sources: Bank of Canada and BloombergEconomic Indices Data for the period of

GDP (Trillion) $1.24 ↑ July/08Total CPI (2002 = 100) 115.6 ↓ Aug/08Inflation 3.5% ↑ Aug/08

N Unemployment Rate 6.1% Aug/08

N PMI 49.9 ↓ Aug/08

Retail Sales $36.0b ↑ July/08Sources: Statistics Canada

Real Estate Indices Data for the period of

N S&P/TSX Capped Real Estate Index 175.59 ↓ 09/30/08

N S&PTSX Capped REIT Index 120.07 ↓ 09/30/08

Investment in Non-Residential Construction

$10.5b ↑ Q2/08

Sources: Statistics Canada and Bloomberg

Legend

↑ Upward movement since previous period of measurement (Bi-weekly movement for indices measured daily)

↓ Downward movement since previous period of measurement (Bi-weekly movement for indices measured daily

No change since previous period of measurement (Bi-weekly movement for indices measured daily)

New Data as of the release of the DTZ Index

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Feature Listings

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1518 COLuMBIa STREETFeatures:

Investment or Owner/User• Stand alone (corner) building• 3 grade loading doors• 3 phase power• Easy access to Highway 1 and Second Narrows • Bridge

Lot Size:12,084.93

Building Size:9,207 sq ft

asking Price:$2,395,000.00

144 - 146 WEST 16Th STREETunit: 146 144(a) 144(D)

Size:

asking Rate:

2,007 sq ft

$23.00 per sq ft net

450 sq ft

$23.00 per sq ft Gross

519 sq ft

$23.00 per sq ft Gross

1602 PEMBERTON aVENuEFeatures:

Close to several amenities• 2nd floor• Ample window space• Easy access to public transit, • banks, restaurants, etc.

Size:7,000 sq ft

asking Rate:$14.00 per sq ft

Matt ThomasMatt.Thomas@dtzbarnicke.com

Direct Tel: (604) 630 3396Cellular: (604) 230 2324

Rand ThomsonRand.Thomson@dtzbarnicke.com

Direct Tel: (604) 630 3393Cellular: (604) 377 5331

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