Vancouver Downtown Becoming More Residential

It wasn't that long ago that when you thought of Downtown Vancouver, the assumption was that you would be surrounded by mammoth office buildings and a few fantastic eateries. Perhaps you would be reminded of Pacific Centre and Robson Street for all your shopping pleasures. As it turns out, the face of Vancouver's Downtown is slowly changing.

The vacancy rate for commercial real estate in Downtown Vancouver is only 2.6%, among the lowest of any city core in North America. Rents are soaring, yet there is barely any new commercial space being developed. By contrast, the commercial spaces in Downtown Calgary and Downtown Toronto are growing rapidly. Why is this?

It's not like there isn't any development in the Downtown area. It's that these new developments are not office buildings and commercials space; they're condos. And it's just not financially viable to consider office space downtown any more, especially with the rapidly rising costs of construction. Residents are willing pay the premium for a downtown lifestyle, but that's just not "worth it" for companies.

The city is hoping to reverse this trend, even though it wasn't that long ago that they were trying to sell Downtown Vancouver as a great place to work and live. Your thoughts?

Source: Globe and Mail

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Vancouver Downtown Becoming More Residential

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