Metro VancouverFederal Accommodations

PortfolioNovember 10, 2010

METRO VANCOUVER PORTFOLIO

Metro Vancouver portfolio of 349,000 Rm2 - 33 % Crown-owned- 60 % leased- 7 % lease-purchase

75 % of our leased office space expiring by 2018

13 Crown-owned assets totalling 20 buildings

Library Square, 350 West Georgia

2

OCCUPANCY PROFILE

20%

5%

6%

9%

46%

14%

CRA

DFO

PWGSC

HRSDC

RCMP

Other

3

Regional Economy

While Canada has weathered the “Great Recession” better than

most, our growth will still be influenced by Geopolitical Factors until

other major economies stabilize.

Vancouver has the right fundamentals to promote growth and job

creation

Supply constraints have put upward pressure on rental rates creating

winning conditions for new development.

Future Growth will be influenced by the geographical limitations in the

CBD, and the new development opportunities around the Skytrain

stations. 4

MARKET OVERVIEW

New office space limited in CBD

6 new projects have been announced potentially involving1.1Million sf but new inventory is unlikely before 2014

The Federal Government typically requires larger blocks of space.

5

LEASE EXPIRIES

Source: OI List, OASRES (March 16, 2010)

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Rm2

6

COMMUNITY BASED INVESTMENT STRATEGY

7

CBIS STRATEGIES Demand forecasting / management of expiries

Crown-owned & leasehold management strategies

Accommodation Portfolio Strategy & CommunityFramework Strategy

Burnaby Fraser Tax Services Office

8

Challenges…

Increasing lease expiries over next 5 years

Limited availability of larger blocks of office space

for lease

The real property commercial market

Project approval process

Our aging real property infrastructure

Attrition & retirements affect capacity to deliver9

SAAP OPPORTUNITIES

• Lease renewals

• Client relocations

• Client space consolidations

• Interim solutions

• Building disposals

800 Burrard, Downtown Vancouver 10

BENEFITS

Flexibility

50:50 (minimum) Crown: lease ratio by 2020

Employer of choice858 Beatty, Downtown Vancouver

11

QUESTIONS?