Vancouver’s downtown condo development market has been very successful. Developers sold the lifestyle and the convenience. “Walk to work”, “It’s like the suburbs downtown” are common selling points. The problem is, condo developers have been so successful they’ve driven up the cost of property so high it discourages commercial property development. Office projects can’t or won’t compete for prime locations downtown, or what few locations are left. The condos have taken over downtown.
That has created a commercial office space crunch downtown. Office vacancies are down to just two percent, the lowest in decades. It also creates an interesting reverse flow situation where, while people are moving downtown into their new condos, the new office developments have largely been in the suburbs. Wouldn’t it be an interesting twist if all those people who moved downtown so they could walk to work ended up commuting out to the suburbs to get to the office?
This might be a good time for a major office tower development downtown. A two percent vacancy rate now, combined with the added interest in Vancouver that will likely follow the Olympics in 2010 should make for good market conditions. It would take a couple years to complete, so the timing would be right. The slowdown in the residential real estate market should also get some developers to look to the commercial property sector.
Vancouver could use a high profile office tower downtown. The Shangri-La, the new multi-use tallest building in the city that is nearing completion, already makes a great addition to the skyline. A new, even taller, office tower that stands out in both scale and form would add even greater definition. What’s missing from the skyline is an iconic building, something instantly recognizable that people around the world will see on TV and know is in Vancouver. It would raise the profile of the city, internationally.
If Vancouver wants to remain the commercial heart of Greater Vancouver, the city should think about trying to get an office project going and zoning to make sure there will be more in the future. Otherwise, the amusing reverse commute situation could actually happen. Who knows? It may seem unlikely now, but maybe even Surrey could develop a downtown commercial district on some of its less attractive land. They are already clearing out the crackheads and removing some houses with drug connections. Then there’s that awful junkyard sitting on prime riverfront property. It has the growing population and land to rival Vancouver. It will probably have more people within twenty years.
Is Vancouver going to just sit back and let it happen?
Tags: architecture, commercial property development, commuting, condos, downtown skyline, downtown Vancouver, iconic buildings, land, lifestyle, lifestyles, marketing, office towers, office vacancies, property, property developers, property development, real estate, selling points, Shangri-La, skylines, suburbs, Surrey, vacancy rate, Vancouver real estate