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B.C.’s film industry gobbling up industrial buildings across metro
Tuesday September 27th 2016The film industry’s absorption of industrial space in the region has been surging, said Roy Pat, an industrial sales and leasing specialist with Colliers International in Vancouver.
“Especially over the last year and a half — mainly because it has coincided with a pick-up in traditional industrial leasing as well,” he said last week.
“We estimate that around two million square feet of new lease deals have been completed on behalf of the film industry in Metro Vancouver in the past year.”
Film groups are looking for spaces with high ceilings, wide column spacing and large footprints, which is the same type of space that industrial distribution tenants tend to want, said Andrew Lord, another commercial broker with Colliers Vancouver.
“The film industry is targeting the same types of buildings because they want to have large, expansive areas where they can have big sets and also have a lot of ceiling height,” he said.
Dian Cross Massey, owner and CEO of The Crossing Studios, has toured about 300 buildings across Metro Vancouver since last fall, seeking long-term leases to house productions for networks like NBC, ABC and Nickelodeon.
“Since December, we started with one building and we’re now up to eight buildings, and we have just over 400,000 square feet now,” she said last week.
“We’re so busy growing that we didn’t even have time to update the website,” she added, noting that six of their eight buildings are in Burnaby; one in Coquitlam and another on Annacis Island.
The Crossing Studios is the region’s second-largest studio provider. The company signs long-term leases for their eight buildings and then rents out the spaces to film and TV crews. “We had lots of conversations where there was a shortage of studio space, and shows were getting turned away from Vancouver,” Cross Massey said. “All the purpose-built studios are booked solid throughout next year.”
She said film groups are now looking for longer leases than in the past, opting to lock down spaces for six months to one year.
The biggest challenge is finding space with high ceilings, wide column spacing, parking and proximity to downtown Vancouver, Cross Massey said. “We’re trying to avoid the whole bridge and tunnel [commute] and have places that are within half-an-hour of downtown Vancouver.”
B.C.’s film industry accounted for about $2 billion in productions in 2014-15, according to the Finance Ministry, and the government expected a similar total for the most recent fiscal year. The low Canadian dollar, good facilities and Metro Vancouver’s quality film crews suggests a bright future for the industry here, Cross Massey said.
On Oct. 1, B.C.’s basic production services tax credit rate will drop from 33 per cent to 28 per cent for all film and TV shoots that start after that date. The government said earlier this year it could no longer afford the tax credit costs, which had climbed from about $313 million annually over the preceding three years to nearly $500 million last year.
But Cross Massey expects the growth to continue. “We’re looking to grow and we’ll continue to find homes for shows that are looking for space for fairly long terms,” she said. “When the industry eventually slows down — which it will — we’ll have top-rated space that can stand the test of time instead of some of the really nasty converted warehouses that people are opening up.”
The film and studio tenants have been quick to pounce on industrial space that does become available, said Russ Bougie, a principal with Avison Young in Vancouver. He said H.Y. Louie is vacating a large distribution warehouse in Burnaby.
“Even before that space has come to market, there’s already an offer from a studio for that 230,000 square feet,” he said, adding that general storage is also in demand by film crews. “Anything that is over about 8,000 square feet, and is vacant, film is all over it.”
Bougie said there are financial incentives for landlords to ink short-term, six-month deals with film groups. “Most landlords would not deal with a six-month tenant, because usually we do deals of three years or five years,” he said. “But film will pay a premium, so most landlords will say, ‘Sure, I’ll lease it for six months if they give me a 25 per cent premium in rent, or something along those lines.’ ”
Bougie said he has had more inquiries from film groups seeking space over the past 12 months than in any other period in the past 18 years.
The region is already facing a critical shortage of industrial space. “Vacancy in Burnaby at mid-year was 1.6 per cent; in Vancouver vacancy was 1.7 per cent; in Coquitlam it was 1.4 per cent,” he said. “Even if they (film groups) weren’t snapping up all the vacant space with short-term leases, the industrial market is a real challenge.”
Businesses, including film tenants, are being forced to look further afield to expand or relocate, he said.
“Tenants are forced to occupy multiple facilities, or they’re forced to locate to a region they would rather not be, but they have to out of pure availability,” he said. “There’s a real shortage of industrial space, and the film industry’s growth has exasperated that growth and made it more difficult for business owners — particularly those close to Burnaby and Vancouver — to grow.”
Source: Metro
Front Page, Headline, Industry News
B.C.’s film industry gobbling up industrial buildings across metro
Tuesday September 27th 2016The film industry’s absorption of industrial space in the region has been surging, said Roy Pat, an industrial sales and leasing specialist with Colliers International in Vancouver.
“Especially over the last year and a half — mainly because it has coincided with a pick-up in traditional industrial leasing as well,” he said last week.
“We estimate that around two million square feet of new lease deals have been completed on behalf of the film industry in Metro Vancouver in the past year.”
Film groups are looking for spaces with high ceilings, wide column spacing and large footprints, which is the same type of space that industrial distribution tenants tend to want, said Andrew Lord, another commercial broker with Colliers Vancouver.
“The film industry is targeting the same types of buildings because they want to have large, expansive areas where they can have big sets and also have a lot of ceiling height,” he said.
Dian Cross Massey, owner and CEO of The Crossing Studios, has toured about 300 buildings across Metro Vancouver since last fall, seeking long-term leases to house productions for networks like NBC, ABC and Nickelodeon.
“Since December, we started with one building and we’re now up to eight buildings, and we have just over 400,000 square feet now,” she said last week.
“We’re so busy growing that we didn’t even have time to update the website,” she added, noting that six of their eight buildings are in Burnaby; one in Coquitlam and another on Annacis Island.
The Crossing Studios is the region’s second-largest studio provider. The company signs long-term leases for their eight buildings and then rents out the spaces to film and TV crews. “We had lots of conversations where there was a shortage of studio space, and shows were getting turned away from Vancouver,” Cross Massey said. “All the purpose-built studios are booked solid throughout next year.”
She said film groups are now looking for longer leases than in the past, opting to lock down spaces for six months to one year.
The biggest challenge is finding space with high ceilings, wide column spacing, parking and proximity to downtown Vancouver, Cross Massey said. “We’re trying to avoid the whole bridge and tunnel [commute] and have places that are within half-an-hour of downtown Vancouver.”
B.C.’s film industry accounted for about $2 billion in productions in 2014-15, according to the Finance Ministry, and the government expected a similar total for the most recent fiscal year. The low Canadian dollar, good facilities and Metro Vancouver’s quality film crews suggests a bright future for the industry here, Cross Massey said.
On Oct. 1, B.C.’s basic production services tax credit rate will drop from 33 per cent to 28 per cent for all film and TV shoots that start after that date. The government said earlier this year it could no longer afford the tax credit costs, which had climbed from about $313 million annually over the preceding three years to nearly $500 million last year.
But Cross Massey expects the growth to continue. “We’re looking to grow and we’ll continue to find homes for shows that are looking for space for fairly long terms,” she said. “When the industry eventually slows down — which it will — we’ll have top-rated space that can stand the test of time instead of some of the really nasty converted warehouses that people are opening up.”
The film and studio tenants have been quick to pounce on industrial space that does become available, said Russ Bougie, a principal with Avison Young in Vancouver. He said H.Y. Louie is vacating a large distribution warehouse in Burnaby.
“Even before that space has come to market, there’s already an offer from a studio for that 230,000 square feet,” he said, adding that general storage is also in demand by film crews. “Anything that is over about 8,000 square feet, and is vacant, film is all over it.”
Bougie said there are financial incentives for landlords to ink short-term, six-month deals with film groups. “Most landlords would not deal with a six-month tenant, because usually we do deals of three years or five years,” he said. “But film will pay a premium, so most landlords will say, ‘Sure, I’ll lease it for six months if they give me a 25 per cent premium in rent, or something along those lines.’ ”
Bougie said he has had more inquiries from film groups seeking space over the past 12 months than in any other period in the past 18 years.
The region is already facing a critical shortage of industrial space. “Vacancy in Burnaby at mid-year was 1.6 per cent; in Vancouver vacancy was 1.7 per cent; in Coquitlam it was 1.4 per cent,” he said. “Even if they (film groups) weren’t snapping up all the vacant space with short-term leases, the industrial market is a real challenge.”
Businesses, including film tenants, are being forced to look further afield to expand or relocate, he said.
“Tenants are forced to occupy multiple facilities, or they’re forced to locate to a region they would rather not be, but they have to out of pure availability,” he said. “There’s a real shortage of industrial space, and the film industry’s growth has exasperated that growth and made it more difficult for business owners — particularly those close to Burnaby and Vancouver — to grow.”
Source: Metro
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Front Page, Headline, Industry News
B.C.’s film industry gobbling up industrial buildings across metro
Tuesday September 27th 2016The film industry’s absorption of industrial space in the region has been surging, said Roy Pat, an industrial sales and leasing specialist with Colliers International in Vancouver.
“Especially over the last year and a half — mainly because it has coincided with a pick-up in traditional industrial leasing as well,” he said last week.
“We estimate that around two million square feet of new lease deals have been completed on behalf of the film industry in Metro Vancouver in the past year.”
Film groups are looking for spaces with high ceilings, wide column spacing and large footprints, which is the same type of space that industrial distribution tenants tend to want, said Andrew Lord, another commercial broker with Colliers Vancouver.
“The film industry is targeting the same types of buildings because they want to have large, expansive areas where they can have big sets and also have a lot of ceiling height,” he said.
Dian Cross Massey, owner and CEO of The Crossing Studios, has toured about 300 buildings across Metro Vancouver since last fall, seeking long-term leases to house productions for networks like NBC, ABC and Nickelodeon.
“Since December, we started with one building and we’re now up to eight buildings, and we have just over 400,000 square feet now,” she said last week.
“We’re so busy growing that we didn’t even have time to update the website,” she added, noting that six of their eight buildings are in Burnaby; one in Coquitlam and another on Annacis Island.
The Crossing Studios is the region’s second-largest studio provider. The company signs long-term leases for their eight buildings and then rents out the spaces to film and TV crews. “We had lots of conversations where there was a shortage of studio space, and shows were getting turned away from Vancouver,” Cross Massey said. “All the purpose-built studios are booked solid throughout next year.”
She said film groups are now looking for longer leases than in the past, opting to lock down spaces for six months to one year.
The biggest challenge is finding space with high ceilings, wide column spacing, parking and proximity to downtown Vancouver, Cross Massey said. “We’re trying to avoid the whole bridge and tunnel [commute] and have places that are within half-an-hour of downtown Vancouver.”
B.C.’s film industry accounted for about $2 billion in productions in 2014-15, according to the Finance Ministry, and the government expected a similar total for the most recent fiscal year. The low Canadian dollar, good facilities and Metro Vancouver’s quality film crews suggests a bright future for the industry here, Cross Massey said.
On Oct. 1, B.C.’s basic production services tax credit rate will drop from 33 per cent to 28 per cent for all film and TV shoots that start after that date. The government said earlier this year it could no longer afford the tax credit costs, which had climbed from about $313 million annually over the preceding three years to nearly $500 million last year.
But Cross Massey expects the growth to continue. “We’re looking to grow and we’ll continue to find homes for shows that are looking for space for fairly long terms,” she said. “When the industry eventually slows down — which it will — we’ll have top-rated space that can stand the test of time instead of some of the really nasty converted warehouses that people are opening up.”
The film and studio tenants have been quick to pounce on industrial space that does become available, said Russ Bougie, a principal with Avison Young in Vancouver. He said H.Y. Louie is vacating a large distribution warehouse in Burnaby.
“Even before that space has come to market, there’s already an offer from a studio for that 230,000 square feet,” he said, adding that general storage is also in demand by film crews. “Anything that is over about 8,000 square feet, and is vacant, film is all over it.”
Bougie said there are financial incentives for landlords to ink short-term, six-month deals with film groups. “Most landlords would not deal with a six-month tenant, because usually we do deals of three years or five years,” he said. “But film will pay a premium, so most landlords will say, ‘Sure, I’ll lease it for six months if they give me a 25 per cent premium in rent, or something along those lines.’ ”
Bougie said he has had more inquiries from film groups seeking space over the past 12 months than in any other period in the past 18 years.
The region is already facing a critical shortage of industrial space. “Vacancy in Burnaby at mid-year was 1.6 per cent; in Vancouver vacancy was 1.7 per cent; in Coquitlam it was 1.4 per cent,” he said. “Even if they (film groups) weren’t snapping up all the vacant space with short-term leases, the industrial market is a real challenge.”
Businesses, including film tenants, are being forced to look further afield to expand or relocate, he said.
“Tenants are forced to occupy multiple facilities, or they’re forced to locate to a region they would rather not be, but they have to out of pure availability,” he said. “There’s a real shortage of industrial space, and the film industry’s growth has exasperated that growth and made it more difficult for business owners — particularly those close to Burnaby and Vancouver — to grow.”
Source: Metro
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