The first phase of the tower is expected to be ready for occupancy by August 2002. Timing of the second phase is dependent upon preleasing. If a substantial portion of the second phase is preleased during construction of the first phase, Bentall says the entire project could be completed as soon as December 2002.

Chris Stokes, director of leasing for Bentall V, tells GlobeSt.com, the Canadian developer has thus far preleased 51,000 sf of the first phase to Canfor Corp. and Harris & Co., a major Vancouver law firm. Rates for the first phase (for a typical 10-year lease to a sizeable tenant) will run $28 per sf (Canadian) for five years, then $31 per sf for the second five years, with a $30 per sf allowance for tenant buildouts, says Stokes. Calculated slightly differently than typical US leases, Vancouver rates are at what Stokes describes as a "net-effective rate." Rents in the second phase of the tower will command higher prices because of the views.

Stokes says the Vancouver office market is strong, having posted record absorption in 2000 of 650,000 sf. In addition, vacancy rates are low. "Vancouver has an inventory of about 21 million sf of office space. About 3.2 million sf of that is 'AAA space' in eight Downtown buildings," he says. Overall, the vacancy rate is about 4%, but only 3% (or less) in the AAA spaces. "Fundamentally, upper-quality Downtown buildings are full," he adds.

Bentall Centre, located on five acres on the northeast corner of Burrard and Dunsmuir Streets in the Downtown core, is the largest integrated office complex in Vancouver and among the largest in Western Canada. The first four buildings were developed between 1966 and 1981 and currently provide space for approximately 7,000 workers.

Towers I, II and III are owned jointly by Bentall and the Great-West Life Assurance Co. The developer's partners in Tower IV are Great-West and Truscan Property Corp. Bentall Centre is managed by Bentall Real Estate Services Ltd. Leasing is handled internally as well by another branch, Bentall Real Estate Services in Vancouver.

Bentall's $1.9 billion in assets includes 6.2 million sf of interest in 8.6 million sf of real estate properties in North America; its core markets being Vancouver, BC, Southern California, and Seattle. Bentall US, headquartered in Bellevue, WA, is its US subsidiary, which is responsible for 55% of the company's total revenue.

Instant Insights /

Bentall Corp. Building 566,000-SF Tower North of Border

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