The Vancouver Business Thread

[osirisboy]

Originally Posted by hollywoodnorth

That's great news for the conference itself. Vancouver is an extremely poor choice to run something like that, with extremely limited hotel stock and expensive per-night averages. It's definitely not a good convention city anymore

I mean, they did run it successfully here for 11 years.

[jollyburger]

Originally Posted by osirisboy

I mean, they did run it successfully here for 11 years.

I mean if it was so bad why did they keep it here for 11 years?

[csbvan]

Vancouver, which rolls from TED to FIFA Summit to Web Summit over the course of 4 weeks is not a good convention city

[jollyburger]

Originally Posted by csbvan

Vancouver, which rolls from TED to FIFA Summit to Web Summit over the course of 4 weeks is not a good convention city

15,000 people for Web Summit as well.

[jollyburger]

Vancouver Eases Affordability Requirements For 9 Rental Projects Under New Development Relief Program

The Rental Development Relief Program consists of two streams, both eligible only to projects with below-market rental units in an area with a below-market rental requirement. The projects also have to be mid-rise or high-rise, be smaller than 1.98 acres, be seeking or have received CD-1 (Comprehensive Development) rezoning approval, and have not yet received a Stage 1 Building Permit — with some exceptions for projects that received permits between December 15 and March 20.

Stream One offers eligible projects adjustments to affordability requirements, while Stream Two offers affordability adjustments plus policy relaxations as it relates to height and density. Both options are “intended to strengthen project viability, protect housing delivery, and maintain momentum toward citywide housing and affordability goals,” said the City, and the pilot program is set to run until December 15, 2027.

Existing below-market rental units are required to be provided at 20% below CMHC city-wide average rents. Through the RDRP, the requirement will be changed to rates that do not exceed city-wide averages for all purpose-built rental units. (One exception is below-market rental units for tenants covered by tenant protection policies, which will remain unchanged.)

The City previously provided examples of what the affordability adjustments would look like in a December report, with the maximum rent jumping from $1,294 to $1,618 for studio units, from $1,470 to $1,837 for one-bedroom units, from $2,052 to $2,565 for two-bedroom units, and from $2,819 to $3,524 for three-bedroom units. In this week’s report, City staff noted that although the change increases rents, they “still reflect up to a 25% discount compared to 2024 market rents for new buildings.”

https://storeys.com/vancouver-rental-development-relief-affordability/

[jollyburger]

Coast Appliances files for creditor protection, cites slowdown in residential construction

https://vancouversun.com/news/vancouver-coast-appliances-creditor-protection-bankruptcy

[whatnext]

Originally Posted by jollyburger

Coast Appliances files for creditor protection, cites slowdown in residential construction

https://vancouversun.com/news/vancouver-coast-appliances-creditor-protection-bankruptcy

Wow, I guess the retail side couldn't offset that.

[whatnext]

Good news for energy exports.


Enbridge gets federal approval for $4B natural gas pipeline expansion in B.C.
CALGARY — The federal government has approved a $4-billion plan by Enbridge Inc.
Lauren Krugel, The Canadian Press
37 minutes ago

CALGARY — The federal government has approved a $4-billion plan by Enbridge Inc. to expand an existing natural gas pipeline in British Columbia, a move one executive says demonstrates a greater "sense of purpose" from Ottawa toward bolstering Canada's status as a global energy exporter.

The Sunrise project would add 300 million cubic feet per day of transportation capacity on Enbridge's 3.6-billion-cubic-feet-per-day Westcoast system, which connects gas fields in northeastern B.C. and northwestern Alberta to the Canada-U.S. border. The project involves adding almost 140 kilometres of new pipe by constructing 11 looping segments parallel to the existing line...

The gas that would flow through the expanded line is not bound for any particular destination, but "some of the capacity will no doubt go offshore," Matthew Akman, who leads Enbridge's gas transmission and midstream business, told reporters Friday.

Sunrise was not reviewed under federal legislation passed last year meant to speed along new infrastructure deemed in Canada's national interest. Nonetheless, Akman said he appreciates the improved tone under Prime Minister Mark Carney's Liberal government.

"There's more of a sense of purpose and an intent and a prioritization, which is what we need to see in Canada," Akman said....

https://www.biv.com/news/enbridge-gets-f...al-gas-pipeline-expansion-in-bc-12187888

[SpongeG]

Toyota parts distribution hub plans move from Richmond to Surrey
The western distribution hub is expected to move in 2028.
Maria Rantanen
Richmond News
a day ago

A Toyota parts distribution centre will be leaving east Richmond and relocate to Surrey.

The Western Canada Parts Distribution Centre, currently located on Fraserwood Way just south of Westminster Highway, will move to the South Campbell Heights area of Surrey in 2028.

“The new location’s convenient access to major transportation routes will allow (Toyota Canada) to better service Toyota and Lexus dealerships and customers across British Columbia,” the company said in a media release.

In addition, a new parts distribution centre will be built in Calgary, also set to open in 2028.

“The new facilities will also help Toyota Canada shorten parts delivery times for its dealerships and customers across Western Canada,” the media release added.

The new British Columbia Parts Distribution Centre in Surrey will be 210,000 square feet in size on an 8.1-acre lot.


...

https://www.richmond-news.com/local-busi...e-from-richmond-bc-to-surrey-bc-12185566

[SpongeG]

Canada Just Opened North America's First Battery-Grade Lithium Refinery
By Haley Zaremba - Apr 26, 2026

Mangrove Lithium's Delta, BC facility is the first commercial electrochemical lithium refinery in North America, with capacity to produce 1,000 tonnes of battery-grade lithium a year.

China still controls roughly half of the global lithium market, and the Canadian government is backing Mangrove as part of a broader critical minerals push under PM Mark Carney.

A planned Eastern Canada expansion would scale output to support up to 500,000 EVs annually by refining lithium and processing spodumene sourced from Canadian mines.

...

https://oilprice.com/Energy/Energy-Gener...irst-Battery-Grade-Lithium-Refinery.html

[whatnext]

Interesting that construction (building) hasn't recorded more job losses.

...The province shed 4,300 jobs in April, according to Statistics Canada data released Friday.

That’s down from the 19,200 jobs lost in March and the 20,200 jobs lost in February. January marked the only month in 2026 in which the West Coast added to the labour market (+3,500 jobs).

The province has had a net loss of 40,200 jobs to start the year....

...Full-time work drove losses in B.C. (-11,700 jobs) as the province added 7,300 part-time jobs in April.

Losses were felt in B.C.’s retail/wholesale trade sector (-7,700 jobs) and in accommodation/food services (-6,400 jobs).

Gains were made in building, business and other services (+6,600 jobs), and manufacturing (+3,900 jobs)....

https://www.biv.com/news/economy-law-pol...ds-toward-busy-world-cup-season-12254689

[jollyburger]

Grosvenor reinforces B.C. focus as it names new Canadian leaders

The promotions reflect the talent within the Canadian business and the company's confidence in the opportunities ahead, said James Raynor, chief executive of Grosvenor Property. "This team brings deep local expertise and a proven track record of growing platforms, delivering complex projects and building strong teams,” Raynor said in a release.

Drexel said the team is doubling down on its strengths, which locally means developing large-format industrial and mixed-use communities. He said the refreshed strategy is centred on a clear pipeline of high-quality projects, including Brentwood Block, Annacis Island and Broadmead Village.

At Brentwood Block, Grosvenor is working on one of the largest development programs in its Canadian history, creating 1,279 new rental homes alongside 160,000 sq. ft. of commercial space and 451 condominiums as part of its first phase.

Grosvenor initially developed its industrial park on Annacis Island in 1955. The 185-acre site has remaining development potential.

The recent acquisition of a 100 per cent interest in Broadmead Village, an open-air, grocery-anchored retail centre on Vancouver Island, further strengthens the portfolio, the company said.

The local market will continue to provide the returns on investment the company wants and needs, Drexel said. "I think one of the unsung heroes of the Vancouver economy has been the Port of Vancouver, and that just… bolsters us to... continue on our investments in industrial."

Meanwhile, Grosvenor has been shifting its approach to development and investment in the U.S. The company plans to sell its existing U.S. portfolio over the next three to five years. Drexel said the plan is to use some of those funds to reinvest back into the U.S. indirectly through partnerships or via active managers. "We'll be more of a passive partner," he said.

"I'm not sure that there's anything to read between lines," Drexel added, when asked to elaborate on the motivations behind its U.S. divestment and the Canadian refocus.

The first phase will include 1,730 homes, including 451 condos in a 41-storey tower.

"Obviously… the pre-sale market has had some disruption," Drexel said, but added that sales appear to be accelerating in recent weeks and about 180 homes have now been sold, or 40 per cent of the units in the planned condo tower.

"We continue to have strong interest in the project with steady visits to our presentation centre and have confidence that we will add pre-sales through completion in 2029," he said.

Meanwhile, at Annacis Business Park, Grosvenor is planning a new industrial warehouse building.

Drexel said the building will be roughly 150,000 sq. ft. and Grosvenor hopes to start construction next year to deliver the building within 18 months of breaking ground. "That would be the first time since 2013 that we've developed a building out there."

"Long term, we believe in the fundamentals of Vancouver," Drexel said. "It's a gateway city; it's a global city. We think that there's a lot of really good things that are happening."

He said ongoing challenges include Canada's reduced immigration and the potential impact lower population growth will have on housing. Broader geopolitical turbulence in the world isn’t helping. "That just raises the question of uncertainty," Drexel said.

People are looking for stability. "We see that in Vancouver."

https://renx.ca/global-re-giant-grosvenor-has-very-different-strategies-in-canada-us

[jollyburger]

Polygon bought two sites last year it felt represented good value, but it has yet to acquire any sites this year as new home prices have continued to slide following caps on immigration announced last year and ongoing affordability concerns.

“The problem when values are falling is that it makes it very hard to understand what you can actually afford to pay for land,” Chrystal said. “If the top end price is off 20 per cent, then you need a little bit of room on your construction cost, you need a little bit of room on land, you need room on DCCs.”

The challenge right now is that new home values continue to fall, with a knock-on effect on land deals.

“Once you find the bottom on pricing, you can engineer what you can afford to everything else, which includes land,” he said. “There needs to be a reset in demand so that the [home] buyers come back and reactivate the land buying cycle.”

A listing in the Edmonds area of Burnaby is a case in point. It has an approved development permit in place for 29 storeys, but with no one building highrises, the price was slashed from $13 million to $5.8 million – suitable for a six-storey woodframe project site. It also ensures the developer the kind of margin they’re looking to build into projects – 15-20 per cent, versus 10-12 per cent a few years ago.

“Now we’re getting action. The big guys are coming out,” Goodman said. “There’s been a change in tempo, and it’s not that prices are rising. Sellers have capitulated and are meeting the requirements developers need on their profit margins, which are definitely higher now.”

https://www.westerninvestor.com/british-...ce-smart-in-a-challenged-market-12338297