City of Surrey
finance, insurance
and real estate
s e c t o r p ro f i l e
[ 1 ]
OVERVIEW
The Finance, Insurance and Real Estate (FIRE) sector drives Surrey’s diverse economy. The City’s rapidly
growing population, which is projected to outnumber Vancouver’s in the next 30 years, and an expanding
business community have created strong demand for both real estate and financial services.
FIRE is a crucial sector for British Columbia, contributing $35 billion towards provincial GDP, compared
with $14 billion for the manufacturing industry and $8 billion for the energy industry. At the local level
there are 766 companies operating in the FIRE sector, and over 1,100 professional service companies
that provide necessary support such as law and accounting firms. Approximately 13,000 Surrey residents,
or 6.2% of Surrey’s labour force, are employed in the FIRE Sector.
“As a forward thinking and business friendly municipality, Surrey is one of the province’s
savviest business hubs. Being based in Surrey has served Coast Capital very well. The
City is aware, sensitive and often ahead of business needs and trends, which makes
operating our business here pleasant, easy and beneficial for our growth and continued
success. The future really does live here.”
tracy redies
President and CEO
Coast Capital Savings
What’s inside
[ 2 ]
overview...................................................... 2
companies and organizations.............. 8
education................................................... 6
SECTOR SPECIFIC SUPPORT......................... 11
surrey overview
A number of key financial service companies have
made a significant investment in Surrey. Coast Capital
Savings, headquartered in Surrey, is Canada’s second
largest credit union with assets of $12.9 billion.
Pricewaterhouse Coopers LLP, one of the world’s ‘Big 4’
accounting firms moved its Private Company Services
Centre of Excellence to Surrey and plans to relocate
the company to City Centre in 2011. The 100-person
KN&V Chartered Accountants, currently the largest
BC-based accounting firm south of the Fraser, recently
moved into new headquarters in the Rosemary Heights
Business Park in South Surrey. While the investments
of larger firms signals confidence in the FIRE sector,
the high number of small and medium sized enterprises
(SMEs) provide Surrey with an important resource.
SMEs support entrepreneurs and encourage the growth
of local companies with accessible fee structures and
services tailored to small business.
Surrey’s culturally diverse population has created a
demand for banks with strong international linkages.
HSBC Bank of Canada, one of the world’s largest
banking and financial services organizations, invested
in a new branch office in the developing financial centre
in Panorama Business Park. The Surrey branch of ICICI
Bank Canada, a subsidiary of India’s second largest
bank, is one of only two located in Western Canada. In
addition to international firms, Surrey is well-represented
by branches of all major Canadian banks including Royal
Bank of Canada, Bank of Montreal, Scotiabank, CIBC, TD
Canada Trust and the Bank of Nova Scotia.
[ 3 ]
surrey overview
value of building permits (2000-2010)
1,600
value of construction (millions)
1,400
1,200
1,000
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
year
Value of Building Permits 2000 - 2010 (Millions)
Year
Residential
Commercial
Industrial
Institutional Total
2000
379.6
108.7
36.8
57.3
578.3
2001
472.3
170.2
34.8
94.8
773.9
2002
695
56.8
33.5
30.9
820.93
2003
814.1
63.7
51.1
19.1
955.5
2004
873.5
106.3
33.4
10.8
1026.7
2005
845.5
128.9
80
113.6
1187.5
2006
961.9
140.3
114.8
113.1
1342.0
2007
1039.1
199.7
94.5
148.9
1488.87
2008
958.5
113.8
102.4
60.5
1268.4
2009
504.1
163.8
42.6
143.3
859.1
2010
804.9
248.3
65.0
88.2
1213.9
*Source: City of Surrey Department of Planning and Development
**Totals may not add due to rounding and excluded permit values for farms, signs, demolitions and parking lots.
[ 4 ]
Surrey’s active real estate market has a significant
economic impact on the local economy. In March 2010
alone, the Fraser Valley Real Estate Board recorded 944
sales worth $449 million in Surrey. The British Columbia
Real Estate Association estimates that every 100
Multiple Listing Service (MLS®) transactions generate
$4.19 million in economic output and $1.97 million in
GDP. High-demand for affordable housing choices in
Metro Vancouver makes Surrey well-positioned for
continued growth: The Real Estate Investment Network’s
2009 report, “Top BC Investment Towns” named Surrey
as the best place to invest based on its rapid population
growth, high renter population and easy access to
transportation corridors.
In addition to a strong existing real estate market, the
City has created incentives to encourage growth in
strategic areas. The City Centre and Bridgeview/South
Westminster Economic Investment Zones provide
incentives for the development of commercial, industrial
and high-density residential within the City. For example,
in City Centre, residential projects valued greater than
$25 million will benefit from deferred Development Cost
Charge payments, a reduction of building permit fees
by 50% and have the density-bonus waived. Business
development projects valued greater than $10 million
have no property taxes for 3 years, DCCs reduced by
33%, deferred DCC payments, building permit fees
reduced by 50% and the density-bonus waived.
The graph located on the opposite page illustrates the
steady growth of Surrey’s real estate market between
2000 and 2007; the value of building permits more than
doubled over this period, peaking at nearly $1.5 billion
in 2007. While Surrey experienced a decline in building
permit values consistent with the worldwide financial
crisis, building permits rebounded to pre-recession
levels in 2010.
[ 5 ]
EDUCATION
Surrey’s two universities supply the
SFU SURREY
resident labour force with highly-qualified
www.sfu.surrey.ca
business graduates. Simon Fraser
University Surrey (SFU Surrey) and
Kwantlen Polytechnic University (KPU)
offer a range of business administration
degrees to supply the FIRE sector,
with specializations that include:
finance, accounting, entrepreneurship,
innovation, marketing and human resource
management. Surrey’s post-secondary
institutions emphasize pragmatic business
skill development through co-operative
education programs and a focus on
entrepreneurship.
The universities are also significant
economic drivers of Surrey economy. SFU
Surrey has an enrolment of 2300 students
and employs 126 staff members; KPU has
an enrolment of 8500 and employs 670
staff members.
[ 6 ]
SFU Surrey provides two unique specializations, only
available at the Surrey campus. The Entrepreneurship
specialization teaches future business leaders to identify
market opportunities, arrange financing, recruit and
retain employees, and deliver quality goods and services
at a cost effective price. Courses include: Project
Management, New Venture Planning, Marketing for New
Ventures, Leadership and New Venture Finance.
The Innovation and Entrepreneurship specialization
teaches students to understand and leverage the
dynamics of change and provide leadership in a
rapidly changing business environment. Courses in
Innovation and Entrepreneurship include: Understanding
Technological Innovation, Project Management,
Sustainable Innovation, Creativity in Business, Emerging
Technologies for Business and Strategic Management of
Innovation.
SFU actively promotes student entrepreneurship
through programs such as Venture Labs. Venture Labs is
an early-stage business incubator that provides support
for business ventures in which SFU students from the
majority of owners/partners. Student entrepreneurs
meet regularly with experienced mentors to review
progress with the participant venture to help them
achieve the milestones set for the business during the
program’s duration of 8-12 months.
Case Study
Venture Labs Success Story
MetroLeap Media Inc.
Founded by SFU Business Administration student
Milun Tesovic, MetroLeap Media Inc. leveraged the
resources at Venture Labs to become to become a
leading provider of music and entertainment content.
Its flagship product, MetroLyrics.com, is the first lyricsdedicated site to provide users with the largest database
of licensed, complete and accurate song lyrics through
its partnership with Gracenote. MetroLyrics has become
the most trafficked lyrics site worldwide reaching more
than 30 million unique monthly visitors, 100 million
monthly page views, and is currently the 7th largest
music property in the U.S.
KWANTLEN POLYTECHNIC
UNIVERSITY
www.kwantlen.bc.ca
Kwantlen Polytechnic University (KPU) is the second
largest business school in Western Canada with an
enrolment of 4800 students and 169 faculty members.
The School of Business has experienced significant growth
over the past 6 years averaging a 7 per cent increase
per year. In terms of student full-time equivalents, if the
School of Business were a stand-alone institution, it would
be larger than Royal Roads University or Trinity Western
University. KPU offers certificate, diploma and bachelor
degree programs in 13 business-related disciplines.
Industry-focused KPU was the third accredited postsecondary institution in the province for the Certified
Management Accountant (CMA) designation.
KPU offers a range of business administration bachelor’s
degrees that include specializations in Accounting,
Entrepreneurial Leadership, Human Resources
Management and Marketing Management. The innovative
Entrepreneurial Leadership degree focuses on managing
and leading small to medium-sized businesses and
launching new business enterprises. Courses include:
Managerial Finance, Human Resource Management,
Business Strategy, Entrepreneurial Finance and Information
Technology for Business. In addition, a Bachelor of
Technology in Information Technology provides an
education in information systems, planning, design and
security, data communications and networking, data
warehousing and mining, business and management,
communications and liberal education.
Milun Tesovic wins first place in the Global
Student Entrepreneur Awards
[ 7 ]
companies and organizations
The following companies and organizations
COAST CAPITAL SAVINGS
highlight the significant investment taking
www.coastcapitalsavings.com
place in Surrey’s expanding FIRE sector;
Coast Capital Savings is Canada’s second largest
credit union with total assets under administration of
$12.9 billion. The 2,000 employee company counts
over 425,000 members and 50 branches in the Metro
Vancouver, Fraser Valley, and Vancouver Island regions of
British Columbia. As a retail financial institution, Coast
Capital specializes in small business services, fee free
banking, insurance, mortgages and investments for both
personal and business clients.
the tables labelled “FIRE Sub-sectors”
illustrate the diversity of local companies
operating in the sector.
Coast Capital’s initial investment in Surrey was its
merger with Surrey Metro Savings, which provided the
infrastructure to grow the company’s business. The
decision to locate a corporate headquarters in Surrey
was driven by Surrey’s reputation as the business hub
for the Fraser Valley, offering a favourable business
climate, competitive pricing and proximity to the
company’s client base.
[ 8 ]
PRICEWATERHOUSE COOPERS LLP
www.pwc.com
PricewaterhouseCoopers LLP (PwC) is the Canadian
member firm of PricewaterhouseCoopers International
Limited, which is one of the “big four” accounting and
professional services firms in the world. With revenues
in excess of a billion dollars, PwC has recently grown
to become the second largest of the big four in Canada
with 5,200 partners and staff in over 23 locations.
Through the provision of assurance, tax and advisory
services, PwC assists clients operating in a diverse
range of industries. While it is perhaps best known
for the audit and other services it provides to public
companies, it is important to note that approximately
half of all the firm’s revenues are derived from services
provided to private companies.
In 2007, PwC decided to make its office in Surrey its
Private Company Services (“PCS”) Centre of Excellence
for BC. Since that time the size of the office has more
than doubled from 40 to 80 employees and is projected
to grow to over 120 people in 2011 when they move
into their new office in the Central City tower. Effective
July, 2010, two additional partners focused on private
company clients will be relocated to the Surrey office on
a full-time basis to assist with the growing demand for
professional services in the City.
KNV CHARTERED ACCOUNTANTS LLP
www.knv.com
KNV Chartered Accountants LLP is a full service
accounting firm that has provided accounting, audit,
tax planning and management advisory services
to corporate and personal clients for over 36 years.
KNV, through its membership in DFK International,
a worldwide association of independent accounting
firms, assists clients globally in addition to servicing
clients throughout the Lower Mainland and the Province
of B.C. As highlighted in the July 2009 Business in
Vancouver publication, KNV ranks as British Columbia’s
13th largest accounting firm making KNV the largest
BC-based accounting firm south of the Fraser River. The
100 employee company views Surrey as the epicentre
of business in Metro Vancouver and the Fraser Valley;
the decision to move the company to Surrey was based
on the City’s exceptional growth and business-friendly
leadership.
[ 9 ]
BUSINESS DEVELOPMENT
BANK OF CANADA
FINANCE
www.bdc.ca
The Business Development Bank of Canada helps
to create and develop Canadian businesses through
financing, consulting services and venture capital with a
focus on small and medium-sized enterprises through its
three business areas. BDC Finance supplies financing
for commercial real estate, equipment, growth projects
and start ups. BDC Consulting offers a range of business
advisory services including: planning, marketing,
export planning, improving efficiency, managing human
resources and creating innovation. BDC Venture Capital
has been involved in venture capital since 1975 and has
to date invested in more than 400 companies involved in
the areas of life sciences, information & communication
technologies, energy, environment and materials.
The Surrey branch is undergoing a significant expansion
and will become the regional office in late 2010 to
oversee all disbursements and portfolio management for
British Columbia.
FIRE Sub-Sectors by
North American Industry Classifications
real estate
Lessors of Residential Buildings
& Dwellings 531111
Personal and Commercial
Banking Industry 52211
63
Local Credit Unions 522130
27
Consumer Lending 522291
24
All Other Non-Depository
Credit Intermediation 522299
8
Mortgage & Non-Mortgage Loan Brokers 522310
21
Other Activities Related to
Credit Intermediation 522390
24
Investment Banking & Securities Dealing 523110
4
Commodity Contracts Dealing 52313031
31
Portfolio Management 523920
8
Investments Advice 523930
50
Total Number of Companies
260
insurance
# of
Companies
4
Direct Individual Life, Health &
Medical Insurance Carriers 524111
1
Other Direct Insurance 524129
Insurance Agencies & Brokers 524210
113
9
Claims Adjusters 524291
Total Number of Companies
related professional services
127
# of
Companies
Offices of Lawyers 541110
105
Offices of Notaries 541120
9
2
Other Legal Services 541190
# of
Companies
113
Secondary Suites 531119
2
Lessors of Non-residential Buildings 531120
Offices of Accountants 541212
110
Tax Preparation Services 541213
32
Bookkeeping, Payroll & Related Services 541215
102
Architectural Services 541310
16
Engineering Services 541330
74
9
Interior Design Services 541430
46
Lessors of Other Real Estate Property 531190
15
69
Administrative Management & General
Management Consulting Services 541611
414
Offices of Real Estate Agents & Brokers 531210
Real Estate Property Managers 531310
35
Other Management
Consulting Services 541619
212
Total Number of Companies
1122
Offices of Real Estate Appraisers 531320
[ 10 ]
# of
Companies
9
Rental & Leasing Services
120
Total Number of Companies
379
Source: City of Surrey Economic Development Office Business
License Data (April 2010).
fire - SECTOR SPECIFIC SUPPORT
International Financial Services
www.ifcbc.com
British Columbia’s International Financial Activity Act
(IFAA) offers attractive incentives to corporations and key
staff conducting international activities in BC:
• Up to 100 per cent refund of provincial corporate
income tax on net income from registered business.
(Eligible activities include treasury functions,
factoring, administrative services, financing foreign
operations via lending, film distribution, leasing and
insuring property outside Canada.)
• 75 per cent refund of BC personal income tax paid
by registered specialists recruited from abroad who
perform qualifying work. (Maximum five years.)
• 75 per cent refund of corporate income tax on foreign
earnings from eligible patents related to life sciences,
power from wind, solar and tidal sources, wastewater
treatment, and fuel cell technology. (Maximum $8
million per year.)
Research & Development by
Knowledge-based Industry
www.ccra-adrc.gc.ca/sred/
www.investbc.com/sred02.htm
Incentives for
Investment Capital
www.investbc.com
Individual taxpayers and corporations receive tax credits
for investing in Venture Capital Corporations, Eligible
Business Corporations, Employee Venture Capital
Corporations and Employee Share Ownership Plans.
Small businesses in British Columbia – including those
in technology, new media and other emerging sectors –
have benefitted greatly from these innovative sources of
patient, local venture capital.
• 30 per cent of an individual’s investment in a
Venture Capital Corporation or an Eligible Business
Corporation is returned as a refundable tax credit at
tax time (maximum $60,000 per year). Corporations
receive non-refundable credits without limit.
• An investor can also choose a labour sponsored fund
and receive a provincial refund equal to 15 per cent
of their investment (maximum $2,000 per year) plus
a federal credit of 15 per cent (maximum of $750 per
year).
• Under BC’s Employee Share Ownership Plan,
employees can invest in their employer’s business
and claim a tax credit equal to 20 per cent of their
investment (maximum $2,000 per year).
Canada is a world leader in supporting and encouraging
research and development through Scientific Research
and Experimental Development (SR&ED) tax credits:
• Non-Canadian companies receive federal corporate income
tax reductions equal to 20 per cent of eligible expenditures
on R&D. Canadian controlled private corporations get an
enhanced reduction equal to 35 per cent.
• British Columbia provides both Canadian and nonCanadian companies a reduction of their provincial
corporate income tax equal to 10 per cent of eligible
expenditures for R&D.
[ 11 ]
economic development office
14245 56 Avenue
Surrey, BC V3X 3A2
1 11 86
t. 604-591-4128 | F. 604-594-3055 | E. econdev@surrey.ca
[ 12 ]