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Real Estate News for Vancouver
WeWork Leases Coworking Office Space in Vancouver's Bentall III Tower
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(Posted on Mar 27, 2017 at 05:43PM by Michelle Bogle)
WeWork, a New York-based company, recently announced that they are converting seven floors of downtown Vancouver real estate into shared office space for tech startups and freelancers. The coworking environment, located in the Bentall III tower, is looking to attract 1,500 people to what it refers to as a “community of creators.â€
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While the concept of coworking isn’t new across the Lower Mainland — Regus offers short-term office space at nine locations in Vancouver, for instance — WeWork is unique in that they are one of the largest single locations (80,000 square feet to be exact) with a specific focus on technology. With momentum gaining within Vancouver’s burgeoning “technology ecosystem,†this is great news for freelancers and startups. Flexible and affordable coworking space will allow them to build a presence while they scale their businesses without being tied down by expensive office leases, which can also be very limiting.
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The Vancouver WeWork location joins the company’s network of 138 offices in 38 cities, ranging from New York to London and Shanghai. The Bentall III location will be dubbed WeWork Burrard Station and it is expected to open by the fall.Â
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WeWork offers a range of membership options. At its most fundamental, freelance members can sign up for access to a “hot desk,†which means they can use any desk available in a shared space. However, other options include dedicated desks, offices available on a monthly basis and entire floors on a term basis. Pricing has yet to be determined, but interested parties can subscribe to updates on the company’s website.
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As the trend towards short-term, project-based employment, also known as the “gig economyâ€, continues to spread across the province, flexible office spaces, such as WeWork, will continue to pop up across major markets like Vancouver. Our team of commercial real estate advisors are keeping a close eye on this trend, as well as other news related to Vancouver’s office market.
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For more information or insight, please contact our office to speak with an associate. You can also view our current listing of commercial properties across British Columbia by clicking here.
Recent Vancouver Office Rezoning Application Demonstrates Need for Smaller Sites
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(Posted on Feb 27, 2017 at 06:41PM by Michelle Bogle)
In December of 2016, a rezoning application was submitted to the City of Vancouver by Musson Cattell Mackey Partnership to rezone 521-525 West 8th Avenue from C-3A (Commercial) District to CD-1 (Comprehensive Development) District.The site, which is located across from Whole Foods, is currently comprised of two single-storey retail buildings, one of which is now vacant.
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The proposed development is for a 68,000 sq. ft., nine storey office building providing approximately 60,300 sq. ft. of office space and 2,000 sq. ft. of retail space, with floorplates ranging from 6,400 to 9,015 sq. ft.
The physical site itself is 90 ft. by 110 ft. for a total of 9899 sq. ft.Â
The physical site itself is 90 ft. by 110 ft. for a total of 9899 sq. ft.Â
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Parking will be accommodated over 3.5 levels of underground garage space and lane side surface car-sharing stalls, to meet the current bylaw, with access from the lane, where loading will also be accessible.
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This application is being considered under the Metropolitan Core Jobs and Economy Land Use Plan. It's also the latest project to fall into the recent trend of rezoning applications for office buildings on sites under 10,000 sq. ft., which traditionally would have been considered too small to accommodate larger floorplates and parking requirements. One of the main key purposes of this office development, according to Musson Cattell Mackey Partnership, is the “creation of new office space in a configuration in response to market needs.â€
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To learn more about this unique office development or other commercial projects underway across the Lower Mainland, please contact Marcus & Millichap’s Vancouver office to speak with a commercial real estate advisor.
3 Ways to Rejuvenate Aging Office Buildings
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(Posted on Feb 8, 2017 at 02:00PM by Michelle Bogle)
If you are an investor with an aging office building in your portfolio or you are looking to invest in one, it might be time to consider a revitalization of your commercial property to remain on the cutting edge of Vancouver’s increasingly competitive office market.As more millennials continue to flood the workforce and shape the way that today’s offices are designed, it’s now more important than ever before that owners focus on upgrades and improvements.
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Here are three tips to consider:
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1. Up the "Wow Factor"
First impressions are everything – especially when attracting millennials as prospective office tenants or employees. Dark, closed in spaces should be replaced with open, well-lit lobbies and public spaces that impart a welcoming vibe. Flexible work zones should promote collaboration and creativity between peers. The design should also be fresh, yet timeless, with a blend of unique furnishings, artwork, sculptures, interesting accent walls or lighting fixtures. Today’s offices should have a “wow factor†– it’s not just a place to conduct business, but a place to inspire.
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2. Invest in Amenities That Millennials Desire
Fitness centres, cafeterias, cafes, wi-fi internet access, outdoor space and even meditation areas are high on the list of wants of millennials in the workforce. While incorporating in these types of amenities within your office building may seem like a challenge, they are a smart investment that will not only attract new tenants, but retain existing ones. After all, more office tenants are expecting these types of amenities nowadays.
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3. Focus on Structures and Systems
Roof structures and HVAC systems have an average lifespan of between 15-20 years, depending on how well they were maintained and cared for. If your aging office building has systems and structures in place that exceed this lifespan, it’s imperative that improvements be completed. Not only will this make your commercial office space more comfortable and attractive to tenants, but it can solve nagging temperature control issues or leaks, which are common problems with aging buildings.
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The bottom line: If you are an owner of an antiquated office building, it’s essential to ensure your commercial property is up-to-date and ready to lease, so you can attract and retain quality tenants. On the other hand, if you are a tenant in need of office space, be sure your commercial real estate broker does their due diligence to ensure any buildings on your radar have undergone recent upgrades or have plans in place to do so in the near future.
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To learn more about office trends and how they are impacting the commercial real estate sector in the Lower Mainland, please contact Marcus & Millichap’s Vancouver office to speak with an associate.
You can also view our current listings of commercial real estate properties by clicking here.Â
You can also view our current listings of commercial real estate properties by clicking here.Â
Millennials are Changing the Face of Office Spaces
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(Posted on Oct 31, 2016 at 01:00PM by Michelle Bogle)
The millennial employee is often characterized by their desire for flexibility, work-life balance and the integration of technology into every aspect of life, not just their work. They also represent the largest generation in the Canadian workforce, making up 36.8% of our country’s workforce, as of 2014. Â
As a result, it's no wonder that their priorities are influencing the modern workplace. This not only applies to daily operations and company culture, but also office layouts as well.
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Here are three millennial-inspired office trends impacting the commercial real estate sector today:
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Millennials want flexibility
One of the things that millennials value most in a career is flexibility. They want to be able to make their own hours, customize their workflow or even work from home. But, this also translates to their office environments too. For example, when they are working on-site, they want flexible workspaces that are easy to move, feature multi-use furniture and a space that allows for the quick shuffling of tech equipment.
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Millennials want to be invested and inspired by their work
Compared to their generational counterparts, millennials want to feel deeply invested and inspired by their work. As a result, many millennial-focused office environments feature inspirational spaces that include values-based imagery, brainstorming areas, as well as large gathering spaces to host events, as a way to build community, foster creativity and maintain a positive company culture.
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Millennials want collaborative spaces
Similar to feeling part of the greater good, millennials also want office environments that break down barriers and spark collaboration between all people. This is a shift from older, less preferred hierarchical environments, with corner offices and cubicle farms, to wide open spaces that are less intimidating, more egalitarian and offer more opportunities for teamwork.Â
 One of the things that millennials value most in a career is flexibility. They want to be able to make their own hours, customize their workflow or even work from home. But, this also translates to their office environments too. For example, when they are working on-site, they want flexible workspaces that are easy to move, feature multi-use furniture and a space that allows for the quick shuffling of tech equipment.
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Millennials want to be invested and inspired by their work
Compared to their generational counterparts, millennials want to feel deeply invested and inspired by their work. As a result, many millennial-focused office environments feature inspirational spaces that include values-based imagery, brainstorming areas, as well as large gathering spaces to host events, as a way to build community, foster creativity and maintain a positive company culture.
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Millennials want collaborative spaces
Similar to feeling part of the greater good, millennials also want office environments that break down barriers and spark collaboration between all people. This is a shift from older, less preferred hierarchical environments, with corner offices and cubicle farms, to wide open spaces that are less intimidating, more egalitarian and offer more opportunities for teamwork.Â
To learn more about office trends and how they are impacting the commercial real estate sector in the Lower Mainland, please contact our Vancouver office to speak with an associate. Or, if you are interested in viewing current listings for commercial properties across British Columbia, please click here to visit our Property Search portal.
Plans for a New Strata Office are Underway in Langley, B.C.
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(Posted on Oct 27, 2016 at 01:00PM by Michelle Bogle)
Plans for a new strata office development are underway in Langley, B.C. Spire Development Corporation purchased the 43,037 sq. ft. lot at the end of August 2016 for $1.4 million. The property is located at 199 Street and 80 Avenue, Lot 8.Â
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Zoned for CD-57, Spire plans to build a 51,000 sq. ft. three-storey office building with suites ranging from 1,000 sq. ft. to 14,000 sq. ft.Â
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Strata commercial space has traditionally accounted for a fraction of the overall commercial market, but its popularity has grown over the past number of years. In fact, new strata office buildings, such as the one in development by Spire, are in high demand across the Lower Mainland. This asset class is becoming increasingly popular with professional services firms or self-employed entrepreneurs, especially those within the medical field, who are seeking an alternative from costly rental offices with increasing lease rates.Â
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Even in neighbouring New Westminster, B.C., the demand is for strata office is high – so much so, that a global commercial real estate service firm is forging ahead with a plan to capitalize on the demand for strata office by selling portions of New Westminster’s Anvil Centre.
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The 137,000-square-foot building has been slow to lease, but discussions with prospective tenants show great potential for sales. To date, a couple of lease agreements are in progress that leave the door open to a future purchase transaction.
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It will be interesting to see how this test plays out – and you can be sure that our team at Marcus & Millichap Vancouver will be keeping a close eye on this project, amongst others.
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To learn more about the strata office market in the Lower Mainland, please contact our office to speak with an associate or feel free to view our current commercial real estate listings in our Property Search portal.
Vancouver Attracting More Corporate Headquarters
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(Posted on May 14, 2016 at 10:49PM by Michelle Bogle)
When people think of Chinese investment in the province of British Columbia, they often focus on Vancouver’s off-putting residential real estate prices.However, what is often not mentioned is the corporate investment going into the Lower Mainland by Chinese companies looking to call Vancouver home.
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And, many Chinese companies are, in fact, choosing to settle in Vancouver.Â
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At the helm of this activity is HQ Vancouver. As a joint federal-provincial organization, they were specifically created to persuade companies to set up regional headquarters in Vancouver.Â
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So far, the half dozen companies who have moved operations to Vancouver are Chinese. They are attracted by some of the lowest corporate tax rates in North America, a 30% exchange rate advantage and significant tax incentives from international business activities.
Vancouver also offers lower employer health insurance costs, lower professional wages, more affordable commercial real estate costs, lower electricity rates and more affordable post-secondary education.
Vancouver also offers lower employer health insurance costs, lower professional wages, more affordable commercial real estate costs, lower electricity rates and more affordable post-secondary education.
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The timing couldn’t be better for a movement like this. China has many companies looking to grow their operations exponentially by seeking a global platform. And, unlike major corporations from countries, such as Japan, South Korea and Western Europe, they don’t have an established relationship with another major North American city, such as Vancouver. This fact has made it much easier for organizations, like HQ Vancouver, to target emerging companies that haven’t established themselves on a global stage.
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Whether your company is considering relocating, expanding or establishing operations here, Vancouver is a vibrant, prosperous city to do business.Â
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To learn more about commercial real estate opportunities for a variety of asset classes, please contact our Vancouver office to speak with our team of advisors.
Technology and Digital Firms Are Dominating Vancouver’s Downtown Office Sector
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(Posted on May 6, 2016 at 04:10PM by Michelle Bogle)
Technology and digital firms are the dominating tenant pool in Vancouver’s downtown office sector. World-class firms, including giants like Microsoft and Amazon, are now the principal lease clients with approximately 740,000 square feet of space.
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In fact, these types of firms account for four out of 10 tenants that hold 50,000 square feet or more and make up 34.2% of all office space this year. This surpasses law firms, who were once the dominant players, but now only account for 10.3% of downtown leases.Â
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To date, more than 100,000 technological professionals work in the province of British Columbia, with about 75% of them residing in Vancouver’s core. They generate more than $23 billion in revenue and $15 billion in gross domestic product, but use less office space than comparable businesses in more traditional fields, such as law.
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This is largely due to the open-concept environments that these digital businesses employ.
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As the tech sector continues to expand across Vancouver, so does the need for flexible office space to accommodate tech firms and other start-ups as they set-up shop.
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For information and investment guidance regarding this growing sector, including its impact on Vancouver’s commercial real estate market, please contact our team of advisors for more.Â
Office Condos – A Growing Trend in Metro Vancouver
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(Posted on Apr 30, 2016 at 06:20PM by Michelle Bogle)
There is a growing trend occurring in major commercial real estate markets, like Toronto and Vancouver, and that’s office condos.
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Many business owners and young entrepreneurs are turning to purchased office space, versus rental units, as it’s an ideal way to build equity.
Instead of paying hundreds of thousands of dollars over the next 30 years, condo office owners are generating equity, which can be used to fund their futures and even retirement nest eggs.
Instead of paying hundreds of thousands of dollars over the next 30 years, condo office owners are generating equity, which can be used to fund their futures and even retirement nest eggs.
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In fact, according to recent industry reports, the demand for office condos in Vancouver is high thanks to low interest rates, strong price-per-square-foot growth, increasing lease rates and opportunity to build equity.Â
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Just six years ago, in 2010, only 31% of office condo buyers in Vancouver were investors. Since then, that number has grown to an unbelievable 83% by 2014.Â
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With this new trend, office condo investors are enjoying the benefits associated with ownership, including fixed and clear costs in a world of increasing lease rates, full control over the look and feel of their spaces, prospects of capital gain and no longer having to worry about leasing contracts and expiration dates. Instead, they can focus on growing their businesses, while reaping the benefits of increased equity over the years.
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Much like home ownership, office ownership is a solid investment in your financial future. To learn more about office condo developments within the Vancouver Metro Area, please contact us to speak with our office asset specialists.
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