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.