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Soaring Commercial Real Estate Price are having a big impact on the Real Estate landscape in Vancouver.
I am Jamie Hooper with Remax Crest and Jamiehooper.com and today I want to talk about the skyrocketing commercial real estate prices and the effect they may have on you for the good or for the bad.
If you’ve been traveling around Vancouver in different areas, I’m sure that you’ve noticed gas stations being sold and closing down all over the place.
There are older apartment buildings that were built in the 1930s 40s or 50s getting sold in downtown Vancouver particularly in the West End.
Now you may wonder why all of these things are going on.
What is happened is the price of the land for these buildings has become so valuable that it no longer makes sense to have these types of buildings or businesses there. When you look at the Chevron station that’s sold earlier this year or late last year at Bidwell and Georgia for about 50 or 75 million dollars it’s easy to understand that you need to pump a heck of a lot of gas for that to be a viable investment for Chevron. Same would be said for the old White Spot building, right next door to it, where they got over two hundred and fifty million dollars for the land. With the property being so valuable we have to ask…what’s going to happen with the places that are coming up in place of them? If you have a look at the land that was originally the Sheraton landmark in the 70s that sold at the foot of Robson Street, which they took down a building that was put up 40 years ago. I recently got an email from a developer, telling me that the units are going to be starting at $2,500 a square foot for this residential property! This also has to make you wonder, what the heck is going to go on with the small independent retailer?
The small independent retailers could have a real problem paying some of those rental rates. If you have a drive down Robson Street nowadays you’ll notice a lot of vacant stores with the only ones in those stores being large national companies that I’ll bet aren’t making any money, they just want their brand to be seen on Robson Street.