How Transit Drives Suburban
Office Development

JLL's Scott MacDonald, pictured right with EVP Mark Chambers, tells us 90% of office space currently in the Metro Vancouver development pipeline is within 500 metres of a rapid transit station. “If you're going to build a pure office project,” Mark says, “any developer now wants to be on the SkyTrain line.” Richmond offers the most compelling evidence of the trend; office buildings there within 500 metres of a Canada Line station are 4.6% vacant while buildings 500 to 1,000 metres from the nearest station have more than five times as much vacancy, according to a just-released report from JLL.

Burnaby's Metrotower, seen here, is one of the most significant transit-oriented developments recently completed in Metro Vancouver, and without substantial pre-lease commitments, Scott points out. It speaks to the confidence builders have in areas serviced by rapid transit. Mark notes that tenants will pay a premium for access to transit, knowing that it makes them more alluring when it comes to attracting and retaining talent. And the HR benefits — happier, more productive employees whose souls haven't been crushed by traffic — can “substantially outweigh the swing in real estate costs.”  

Onni Group of Cos. VP Nick Belmar has lived on the North Shore for 30 years, and grew up in Central Lonsdale. So he's well placed to assess how it's changed through the years. “And it hasn't really changed,” he tells Bisnow. His company's new project, CentreView, at 13th Street and Lonsdale Avenue—the largest mixed-use development in North Vancouver— signals a new direction for his old stomping grounds. “It'll change the level of activity you see in Central Lonsdale," he says, noting the area is a ghost town after 9pm, with few options for late-night refreshment. “We want this to be a hub (as rendered below). A place where people can go hang out.” 

The city sees CentreView, with a pair of condo towers (17 and 24 storeys; 340 units total), becoming a gateway for Central Lonsdale, Nick notes. The project, built on the site of an old Safeway grocery store, will have an 80k SF office building (targeting medical professionals), and 90k SF of retail space, with restaurants on either end of 13th to spur street life. Onni will redevelop an existing public plaza, and the retail will be anchored by a 40k SF Whole Foods. “Compared to what was there, it's day and night," Nick says. "It'll bring an entire different level of energy to that intersection.”