first half of 2019 office market RECAP
Strata Office Sales: 0 Transactions
There were no strata office sales in Langley’s 200th Street Corridor experienced a complete absence of any strata office sales in Q1-Q2 2019 due to a lack of supply. The area has a low supply of strata offices to begin with and all new office projects that have been on the market are available for lease, not for sale. This has resulted in pent up demand from both business owners and investors looking to purchase office space in this desirable neighbourhood.
There is little relief in sight for this issue as the majority of upcoming projects are also slated to be available for lease. West 200 (#4 on the map) is the only project slated to be available for purchase in the foreseeable future. Due to the pent up demand, West 200 is expected to sell out quickly and achieve new record high pricing for the area.
Commercial Land Sales: 0 Transactions
The area also saw zero commercial land sales in 2019 in Q1-Q2 2019 due to a lack of supply, as most parcels designated for commercial development have been secured by developers.
Office Lease Rates: $25-35 Average Price Per Square Foot
Lease rates increased over Q1-Q2 2019 with the launch of multiple new lease projects, which always fetch higher rates than older offices.
CURRENT & FUTURE OFFICE DEVELOPMENT
The below map highlights developments along the corridor. It is colour coded to showcase the different timelines to development of each site. We have also indicated what type of development and, for office development, whether it will be available for lease or sale (if known).
Carvolth Business Park is being proposed for the properties spanning 200th Street between 88th Avenue and 86th Avenue, adjacent to the 200th Street interchange with Highway 1.
If the project is approved, it will include:
- Two eleven-storey office buildings with 415,479 sf of office
- A seven-storey hotel with both a Four Points by Sheraton and a Residence Inn by Marriott. The hotel will include:
- 264 rooms
- Conference/banquet facilities
- Commercial retail space
- 1,605 parking stalls (combined) including surface and underground parking
The proposal for Carvolth Business Park outlines a phased construction approach. Phase 1 will include the hotel and the east office building while the west office building will be built in phase 2. The proposed construction schedule will see construction start in 2020 with completion of phase 1 in February 2022 and full completion of the project is anticipated for December 2023.
An application has been submitted to rezone the properties to accommodate the proposed development. The application received first and second reading in early July and a public hearing will be held in the near future.
If you have any questions regarding commercial development in Langley’s 200th Street Corridor please don’t hesitate to contact me.
Sources: Township of Langley, Commercial Edge