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Halifax Nova Scotia Commercial Real Estate Market

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					 COMMERCIAL REAL ESTATE MARKET REPORT                                                                           COMMERCIAL REAL ESTATE MARKET REPORT
                                        JJ Barnicke Atlantic Limited                                                                                      JJ Barnicke Atlantic Limited
                      1809 Barrington Street, Suite 1402, Halifax, Nova Scotia B3J 3K8                                                  1809 Barrington Street, Suite 1402, Halifax, Nova Scotia B3J 3K8
                         Ph: 902-429-9249 Fx: 902-429-5176 www.jjb.com/halifax                                                             Ph: 902-429-9249 Fx: 902-429-5176 www.jjb.com/halifax

                                                                                         January 2005                                                                                                                 January 2005
                                                                                                                                            Atlantic Region Economic Overview
                                                                                                                                            Economic growth in Atlantic Canada is forecast to lag the national average for 2004 and
                                                                                                                                            2005. Nova Scotia GDP is predicted to grow 2.3% and 2.6% respectively in 2004 and 2005.
                                                                                                                                            Newfoundland and Labrador's GDP growth in 2004 and 2005 are forecast to reach 2.5%
                                                                                                                                            and 2.2%, New Brunswick 2.6% and 3.0%, and Prince Edward Island 2.0% and 2.4%.

           Successful Tenant Representation 2004                                                                    ISNOR MOTORS
                                                                                                               3447 KEMPT R OAD, NS
                                                                                                                                            In the first half of 2004, there were high levels of activity in construction, manufacturing
                                                                                                                                            and the publicly funded health and education sectors; however, these sectors were
                                                                                                            . 12,600 sq.ft. Building        counterbalanced by weak tourism and consumer activity. Hospitality and residential
                                                                                                            . 42,156 sq.ft. Lot             development projects will continue to be the primary focus of new real estate development
                                                                                                            . High Profile Location         for the Halifax CBD during 2005. Three downtown development proposals valued in excess
                                                                                                                 A SKING $ 2,100,000        of $150 million are currently in the hands of municipal planners. Residential, retail and
Leased 11,954 sq.ft.        Leased 4,487 sq. ft.         Leased 2,825 sq.ft.        Leased 11,900 sq. ft.                                   industrial development will continue in the suburban areas for 2005/2006. Notable are
   Capital District                                        Dominion of Canada                                                               major residential developments on the Brightwood Golf and Country Club, Morris
                              Metropolitan Halifax                                                                                          Lake-Russell Lake, and Williams Lake, as well as retail development on the Countryview
   Health Authority          Chamber of Commerce            General Insurance            American Express                                   and in the Baker Drive-Portland Street area.

                                                                                                                                            In Nova Scotia, declining natural gas production, the strengthening Canadian dollar and
                                                                                                                                            high energy costs have had negative impact on growth; however, a $1-billion natural gas
Leased sq.ft.                                                                                                                               distribution system and a $500 million natural gas pipeline expansion are progressing.
Leased 25,000 sq.ft.        Leased 8,161 sq.ft.          Leased 68,000 sq.ft.       Leased 12,000 sq.ft.        9185 COMMERCIAL ST.
                                                                                                                   N EW MINAS , NS
                                                                                                                                            Halifax-Dartmouth-Bedford, the economic engine for Nova Scotia, continues to benefit
                                                                                                                                            from its diverse economy centered around regional business services, medical and high-tech
                                 Capital District                                                           . 9,000 sq.ft. Office
                                                                                                                                            research, government, medical and educational services, military, and tourism.
                                                                                                            . 23,000 sq.ft. Warehouse
       Anixter                  Health Authority                Exxon Mobil                  Imperial Oil   . Multi-use Building
                                                                                                                  A SKING $995,000                                                                         Feature Property
                                                                                                                                                                                                           Dartmouth Marine Slips
                                                                                                                                                                                                       . Halifax Harbour Across
                                            Jim MacKinlay                                                                                                    Downtown Dartmouth                          from Halifax CBD
                                               482-5487                                                                                                                                                . Land - 9.2 Acres
                            for all of your Tenant Representation Needs                                                                                Downtown Halifax
                                                                                                                                                                                                       . Water Lots - 21.0 Acres
                                                                                                                                                                                                       . Currently Zoned - Marine
                                                                                                                 15 FIELDING AVENUE                                                                      Business
                                                                                                              D ARTMOUTH, NOVA SCOTIA
                                                                                                            . 23,000 sq.ft.                                      Dartmouth Marine Slips
                                          Client Advisory Service Team                                      . 2.33 Acres                                                                                    ASKING $ 10,000,000
                                                                                                            . 6 Private Offices
   Tim Margolian, President & Investment Sales -            tim.margolian@jjb.com            425-9554       . Warehouse Ceilings 18’        Sales & Investments
                                                                                                                 A SKING $ 1,100,000
                                                                                                                                            Investor interest in Atlantic Canada continues to grow. Low interest rates, security of
   Greig Horton , VP Corporate Services & Investment Sales - greig.horton@jjb.com            482-0282
                                                                                                                                            capital, and higher investment returns than available in other parts of the country are
                                                                                                                                            fueling increased investor confidence in Atlantic Canadian investment opportunities.
   Dan Sangster , Sales/Client Advisory Services -          dan.sangster@jjb.com             429-9339                                       Increasing values for sellers and lower going-in yields for buyers are slowly being realized.

   Jim MacKinlay, Leasing/Client Advisory Services -        jim.mackinlay@jjb.com            482-5487                                       Fundamentals are strong for all asset classes. The demand for multi-residential
                                                                                                                                            properties remains high but is expected to cool as vacancy and interest rates increase
                                                                                                                   273 F OREST STREET       marginally in late 2005. Interest in industrial and retail properties will remain high and,
   Helen Harris, Office Administrator -                     helen.harris@jjb.com             482-9331            YARMOUTH, NOVA SCOTIA      subject to rising interest rates, are anticipated to appreciate modestly. Although investor
                                                                                                            .   20,000 sq.ft. Building      interest in properties throughout Atlantic Canada is increasing, Halifax remains the
                                                                                                            .   18,000 sq.ft.               preferred market.
                                                                                                                Manufacturing Space
                                                                                                            .   2,000 sq.ft. Office Space   Subject to the negative impact imposed by rising interest rates,
                                                                                                            .   3 Loading Docks             our forecast for 2005 anticipates continued demand for all
                                                                                                                    A SKING $ 450,000       commercial real estate product types in Atlantic Canada.
    COMMERCIAL REAL ESTATE MARKET REPORT                                                                                                                 COMMERCIAL REAL ESTATE MARKET REPORT
                                               JJ Barnicke Atlantic Limited                                                                                                                           JJ Barnicke Atlantic Limited
                             1809 Barrington Street, Suite 1402, Halifax, Nova Scotia B3J 3K8                                                                                       1809 Barrington Street, Suite 1402, Halifax, Nova Scotia B3J 3K8
                                Ph: 902-429-9249 Fx: 902-429-5176 www.jjb.com/halifax                                                                                                  Ph: 902-429-9249 Fx: 902-429-5176 www.jjb.com/halifax

                                                                                                                        January 2005                                                                                                                                           January 2005
                                 HRM Office Market                                                                  Dartmouth           Bedford                                         Industrial Market                                                                         Halifax
                                                                                                                      19%                4%                                                                                                                              Bedford
                                                                                                                                                                                                                                                                     Bedford 5%2%Halifax 2%
                                 Office vacancy in Halifax Regional Municipality (HRM)                                                                                                  New construction in the Burnside Industrial Park                                   5%
                                 increased 80,000 +/- sq.ft. during 2004, resulting in an end                                                                                           added 80,000 square feet of industrial space
                                 of year vacancy rate of 9.4% which remains one of the                                                                                                  during 2004 and as a result the vacancy rate
                                 lowest overall office vacancy rates in Canada. The                                                                                                     increased 1.7% to 6.5% as of year end. New
                                 availability of sublet space will continue to impact on
                                 vacancy; however, we forecast continued modest absorption                                                                                              construction scheduled for completion in the 1st
                                 and stable rental rates throughout HRM in 2005.                                                                                                        half of 2005 will add an additional 190,000 +/-
      C ORNWALLIS INN                                                                         CBD 54%                                  Peripheral                                       sq.ft. to inventory and increase vacancy in the
       K ENTVILLE, NS
                                 HRM Office Market - CBD                                                                                 23%                                            short-term to 9.3%+/-.
. 82,000 sq. ft. Building                                                                                                                                                                                                                                                        93%
                                                                                                                                                                                                                                                                        Burnside Burnside
                                                                                                                                                             LAKE LOON LANDS                   Absorption           December          December                                      93%
. ~2.5 Acres                     Halifax CBD leasing activity was modest during 2004 ending the year with a 9.2% overall                                                                                               2004             2003       With the exception of owner-occupied, additional
                                                                                                                                                            GOLFVIEW D RIVE , NS
. Zoned C-1 Commercial                                                          vacancy (Class A - 10.6% and Class B - 8.6%).                                                                                      (12 months)      (12 months)
                                                                                                                                                                                                                                                   new construction in the industrial sector during
                                      Absorption         Dec 2004     Dec 2003                                                                         . ~23.83 Acres
    A SKING $ 4,195,000                                             (12 months) Positive Class A absorption of 14,000 square
                                                                                                                                                                                          Burnside Business Park     (23,031)          63,792
                                                                                                                                                                                                                                                   2005 is not expected until such time as the
                                                        (12 months)                                                                                    . Flat Land
                                                                                feet was offset by negative absorption of 52,000                       . Easy Access                           Bayers Lake            3,600           16,670       increased supply has been absorbed.
                                  Central Business Dis.   (37,873)     40,440   square feet of Class B space which was primarily                            ASKING $ 3,650,000
                                       Peripheral         (27,509)    86,098    attributable to the recognition of additional sublet                                                      Atlantic Acres/Bedford        844           (1,389)      With the move of Federal Government archives’
                                                                                space.
                                       Dartmouth           94,604      107,097                                                                                                                                                                     102,000 sq.ft., into one of the new properties in
                                                                                                                                                                                           Overall Warehouse         (18,587)         79,073
                                         Bedford             (21,542)        4,649
                                                                                         Net rents in the CBD remain steady with continued                                                                                                         Burnside and the expansion of the RCMP by
                                      Overall Metro           7,680        238,284       hold-the-line pressure on landlords' to counter the                                               Net Effective Rates                                     25,000 sq.ft. into another of the new Burnside
                                   Net Effective Rates                                   impact of sublets and tenant migration to suburban                                                                                                        properties, it is evident that Burnside is and will
     3411 HIGHWAY 211                                                                    office space. Rental rates will remain below                                                     Burnside Business Park   $5.50-$9.50       $6.00-$8.00   continue to be the preferred industrial location
                                   Central Business Dis.   $9.00-$18.00   $9.00-$18.00
      C ENTRELEA, NS                                                                     replacement costs and as a result no new CBD office                                                                                                       within HRM.
. 157,000 sq. ft. Office and            Peripheral         $7.50-$16.50   $8.00-$16.00   construction is anticipated for 2005.                                                                 Bayers Lake         $7.00-$10.00      $7.00-$8.00

  Manufacturing facility                Dartmouth          $7.00-$16.00   $7.00-$16.00                                                                                                    Atlantic Acres/Bedford   $5.00-$7.00       $5.00-$7.00
. 48.1 Acres of Property
                                         Bedford           $9.50-$16.50   $9.00-$16.00
. 14.6 to 14.9 ft. Ceilings
     ASKING $ 695,000                                                                                                                                                                                                                   Industrial 10 YR Vacancy & Absorption
                                 HRM Office Market - Suburban                                                                                            LOT A2C & 525 MAIN ST.,        Leasing face rates for new
                                                                                                                                                             D ARTMOUTH, NS             construction remain in the                300,000                                                         20.0%
                                 Suburban Halifax markets consisting of Peripheral                                                                     . Unique Development
                                 Halifax, Dartmouth and Bedford continued to grow but at a slower pace compared to prior                                                                $6.50 to $6.75 net psf                    200,000                                                         15.0%
                                                                                                                                                         Opportunity                    range. In general, we                     100,000                                                         10.0%
                                 years. Suburban vacancy ended the year at 9.7% with positive absorption of 45,553 square
                                 feet. Positive absorption is expected to continue during 2005, with little if any new office                          . Excellent Site Visibility      anticipate rental rates for                      0                                                        5.0%
                                 construction to be completed during 2005.                                                                                 ASKING $ 1,100,000           existing supply will remain               -100,000                                                        0.0%
                                                                                                                                                                                        steady throughout 2005.




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                                 Peripheral Halifax's overall vacancy was 9.4% with negative absorption of 27,500 square feet




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       487 MARINE D RIVE         primarily attributable to the addition of sublet space to the market. Dartmouth office space
    SYDPORT, CAPE BRETON         continues to grow, experienced positive absorption of 94,600 square feet and ended the year                                                                                                                              Absorption          Vacancy
.   1,400 sq. ft. Office         with an overall vacancy of 9.9%.
.   21,000 sq. ft. Warehouse
                                                                                                                                                                                                                                    jjBarnicke Atlantic's Team
.   ~5.91 Acres of Land          Suburban rental rates will remain steady as businesses
.   Zoned I-1 Light Industrial   continue to look for the benefits of favourable rents, free     Halifax Regional Municipality                                                         At jjBarnicke Atlantic we pride ourselves in recognizing the importance of every client. With over 28 years
                                 parking and convenient access to highways and arterial roads. . Total population                                                                      experience in the industry, jjBarnicke Atlantic is available to meet your sales, leasing and investment
       ASKING $ 750,000
                                                                                                                                  360,000                                              requirements. Our service strength is further enhanced through our partnership with jjBarnicke nationally.
                                              Office 10 YR Vacancy & Absorption                                   · Total Office Market Size                                           The jjBarnicke Atlantic Leasing Team specializes in office and industrial leasing, with the expertise and
        For Lease                                                                                                                 8.9 million sq ft                                    knowledge to assist in negotiating your existing lease (renewal), seek out new premises, market your sublet
                                  400,000                                                                 20.0%                                                                        or provide consultation services. As Client Representation Specialists, we are on your team.
                                                                                                                  · Total Office Market Vacancy
                                  300,000                                                                 15.0%                   9.4%                                                 The jjBarnicke Atlantic Sales Team has the background and experience to market a broad range of
                                                                                                                                                             220 KENT STREET
                                  200,000                                                                 10.0%                                             CHARLOTTETOWN, PE          commercial properties including unserviced land, owner occupied buildings, retail malls, office,
                                                                                                                  · CBD Class A Vacancy                                                multi-residential and industrial buildings. Familiarity with market trends and our market/property analysis
 1791 BARRINGTON STREET           100,000                                                                 5.0%                  10.6%                  . Multi-tenant Four Plex        provide clients with the edge needed to make sound investment decisions.
        HALIFAX , NS                      0                                                               0.0%                                           Building
. 3,992 sq. ft.                                                                                                   · Total Industrial Market Size       . 4,950 sq. ft. Lot                                                           JJ Barnicke Atlantic Limited
                                              1995 1996 1997 1998 1999 2000 2001 2002 2003 2004                                    4.9 million sq ft
. 5th Floor Office                                                                                                                                     . 2,100 sq. ft. Commercial                                                  1809 Barrington Street, Suite 1402
. 11 Private Offices                                           Absorption                Vacancy                  · Total Industrial Vacancy             Space                                                                       Halifax, Nova Scotia B3J 3K8
                                                                                                                                                                                                                                          www.jjb.com/halifax
. Class “A” Leasholds                                                                                                              6.5%                      A SKING $ 159,000

				
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