The tech industry and transit hubs drive demand for Vancouver commercial real estate

In Vancouver, the real estate buying frenzy has attracted much attention and speculation. And although the city’s residential real estate market is often dominating the headlines, what’s happening on the commercial side of things? Kevin Desmond, CEO of TransLink, and Bart Corbett, senior vice president at Cushman & Wakefield, discuss a few key trends we’re seeing in Vancouver’s commercial real estate market.

Development centred around transit hubs

TransLink CEO, Kevin Desmond, suggests that businesses situated on transit lines have access to a broader customer and employee base, and that’s one reason for the flurry of development around transit hubs. “Transit hubs in Metro Vancouver are growing rapidly, and that will play a significant role in the growth strategy of the region as it prepares to welcome a million new residents over the next 25 years,” Desmond adds. “This is something businesses and developers recognize, and we’ll see the addition of millions of square feet of commercial space around the SkyTrain in the coming years.”

Future plans for various SkyTrain hubs include:

• The Brentwood Station area has more than 9.2 million square feet of developments planned or in construction, including 1.3 million square feet of retail and 750,000 square feet of office space.
• The Lougheed Station area has more than 7.2 million square feet of new construction planned, which includes 1.2 million square feet of retail and one-million square feet of office space.
• The Gilmore Station area has almost 5 million square feet of new construction planned or in progress, including 500,000 square feet of retail and one-million square feet of office space.

Bart Corbett, senior vice president at Cushman & Wakefield, agrees that transit hubs are driving location-based demand for commercial real estate in Vancouver. “Across all markets—whether it’s Coquitlam, South Vancouver or the downtown core—most office developments are located on a direct SkyTrain line or within close proximity to a station,” Corbett says.

The evolution of Vancouver’s technology industry

Corbett suggests that the technology sector is another factor that’s impacting demand for Vancouver’s commercial real estate. In 2015, Microsoft took up office space in the Nordstrom’s building, doubling their footprint in the Vancouver market. Sony Pictures Imageworks recently moved their headquarters from Los Angeles to Vancouver, and Amazon has taken about 150,000 square feet in the Telus Garden building.

“I think the clearest trend we’ve seen in the last 15 years is the evolution of the technology industry, which is the number one driver for office demand in the downtown core and, to some extent, in the suburbs,” says Corbett. “Vancouver is on the West Coast, so we’re in the same time zone as Silicon Valley. We’re also close to Seattle, where Microsoft, Facebook and Amazon have a presence,” Corbett adds. “All three transit lines connect to the downtown core, and that also appeals to technology companies looking to attract home-grown talent.”

For an opportunity to listen to Bart Corbett, Kevin Desmond and several other panelists share their insight into the future of real estate in Vancouver, register now for the annual Vancouver Real Estate Forum taking place on April 11, 2017 at the Vancouver Convention Centre West.