Office Market Discussion

[Changing City]

Originally Posted by jollyburger

They only leased 9 floors.

They just renewed the Anchorpoint 1380 Burrard in 2020 with 88,360 square feet. In 2017 they took the 855 Homer office space with 55,000 square feet in 2017. I guess the only administrative building they own is Cornwall so they must be selling that.

https://biv.com/article/2022/06/lululemo...20000-square-feet-vancouver-office-space

Western Investor said they are moving from Cornwall.

https://www.westerninvestor.com/british-columbia/lululemon-inks-lease-for-new-headquarters-5466005

And Lululemon's quarterly report from June 2, 2022, so the Lululemon's PR guy isn't entirely correct about their other locations.

https://corporate.lululemon.com/media/press-releases/2022/06-02-2022-210532515

Clear as mud!

So in summary, it looks like they've shifted from owning 1818 Cornwall to leasing there, having just sold it. They've also expanded their overall space, and now have three leased buildings Downtown, by adding 1280 Burrard. (We don't know the terms of those leases, or whether there are demolition clauses, for example on the Anchorpoint building, which could be a factor).

They still own the site on False Creek Flats for the large office building that would allow them to consolidate all their operations, but for now they occupy four leased buildings, two of them obvious candidates for redevelopment at some point in the future (Anchorpoint, and Cornwall).

The False Creek Flats building (addressed as 1980 Foley) has an approved Development Permit, but they haven't indicated when, or whether they're still going to develop it.

[officedweller]

Thanks for the sleuthing!

So the retail at One Burrard Place is unleased - so no Meinhardt's (?)

Pic by me today of the building in question with nice accent lighting on the curves.

[hollywoodnorth]

Originally Posted by officedweller

Thanks for the sleuthing!

So the retail at One Burrard Place is unleased - so no Meinhardt's (?)

Pic by me today of the building in question with nice accent lighting on the curves.

after the — slapping they took in West Vancouver I bet they have put any expansion plans on hold. I would too if I had been beaten down so badly in West Van.

[officedweller]

Spoke to a construction worker in TD Tower yesterday, and he said that Miller Thomson is already occupying the 22nd floor (formerly EY) and the 23rd floor will be ready in August.

[hollywoodnorth]

Originally Posted by officedweller

Spoke to a construction worker in TD Tower yesterday, and he said that Miller Thomson is already occupying the 22nd floor (formerly EY) and the 23rd floor will be ready in August.

was he an orange vested guy? or?

[officedweller]

Originally Posted by hollywoodnorth

was he an orange vested guy? or?

I knew someone would ask that!
YES!

[jollyburger]

So even though the rise of remote working might lead one to believe that office space would be in less demand, big U.S. tech companies appear to be growing more comfortable tapping workers based in Vancouver offices to exploit lower operating costs.

Vancouver-founded PlentyOfFish (now owned by Match Group), fintech Tipalti Inc., medical devices firm Masimo Corp. (Nasdaq:MASI) and Microsoft Corp. (Nasdaq:MSFT) are among the American tech companies that have been expanding downtown over the past year.

And homegrown tech firms that recently reached unicorn status (a valuation of US$1 billion or more) also have a foothold in the city’s downtown core, including Trulioo Information Services Inc., GeoComply Solutions Inc. and Galvanize.

But companies are paying a premium to expand in Metro Vancouver, where the cost of office space per square foot sits at $32.90, according to Colliers’ data.

Only Toronto, at $26.06, even comes close to Vancouver. The net asking rate for office rent in Calgary stands at $14.15.

https://biv.com/article/2022/06/tech-com...ice-space-and-vancouvers-feeling-squeeze

[CanSpice]

Originally Posted by jollyburger

https://biv.com/article/2022/06/tech-com...ice-space-and-vancouvers-feeling-squeeze

How do those rates compare in, say, Silicon Valley, Austin, Seattle, or New York City?

[jollyburger]

Originally Posted by CanSpice

How do those rates compare in, say, Silicon Valley, Austin, Seattle, or New York City?

I assume they are factoring in all the costs for hiring an employee versus the office lease rates?

Cushman said asking rent downtown is $57/square foot. Seattle $44.82(USD) so about the same? 18.2% vacancy though.

[s211]

Originally Posted by jollyburger

I assume they are factoring in all the costs for hiring an employee versus the office lease rates?

Cushman said asking rent downtown is $57/square foot. Seattle $44.82(USD) so about the same? 18.2% vacancy though.

Be careful when comparing numbers. Some regions report net rental rates whereas most, especially in the US, report gross rents.

[LeftCoaster]

Seattle gross rate is generally mid $50s to low $60's USD for class A downtown or Bellevue, Vancouver's gross is mid $70s up to low $80s CAD, so more or less the same rate at this point. Seattle's vacancy is over twice Vancouver's right now so expect more upward pressure on Vancouver's rates and less on Seattle's, but once Seattle absorbs that vacancy it will likely pass Vancouver again.

[jollyburger]

Plan for that Arno Matis Seymour office/heritage reno

852-872 Seymour St (DP-2022-00412) development application

Arno Matis Architecture has applied to the City of Vancouver to develop a seven-storey office building with heritage retention and commercial at ground.

The proposal includes the following:

Height of 21.3 m (70 ft.)
Total FSR of 5.5 (including 10% Heritage Preservation Bonus)
Three levels of underground parking with vehicular access from the rear lane

https://shapeyourcity.ca/852-872-seymour-st

[s211]

Originally Posted by jollyburger

Plan for that Arno Matis Seymour office/heritage reno





https://shapeyourcity.ca/852-872-seymour-st

THREE levels of underground parking? That'll be one tight corkscrew.

[Changing City]

Originally Posted by s211

THREE levels of underground parking? That'll be one tight corkscrew.

Car elevator.

[jollyburger]

Looks like they'll have two elevators for the 30 or so spots.

[wabooba]

Nice that they're keeping that heritage building. Vancouver has rather few of them, and it's good to enhance and preserve them whenever possible ... I think.

[officedweller]

I wonder if the Urban Design Panel will ask hem to make it look less like a condo and more like an office building?

[jollyburger]

Just make it black, stick glass to the edge of the building frame and throw in some ugly wood trim to pass UDP

[Changing City]

Originally Posted by officedweller

I wonder if the Urban Design Panel will ask hem to make it look less like a condo and more like an office building?

They shouldn't be quite so bothered here - it's in the 'Shoulder' area of the CBD, (DD-C), so the top four floors could be a condo.

[logan5]

That straight outta the 90's design might be ok for Esplanade in North Van, but you should never in a million years have a design like that anywhere in Downtown Vancouver.

At least take 1 styling cue from the heritage structure. I guess they did some colour matching. Whoopi-do. If they have to plop something modern on top, something along the lines of 402 Dunsmuir would look better.