Canadian Tire Corp. is proceeding with plans for a store on Southwest Marine Drive in Vancouver, five years after city concerns about highway-oriented retail properties nixed a previous bid.
At the time, councillors, who were concerned major new developments along Southwest Marine Drive could hurt smaller retailers, were against Wal-Mart and Canadian Tire proposals. A review of policies for the 46 acres approved for so-called big-box (or highway-oriented) retail uses south of Southwest Marine Drive between Main and Yukon streets ultimately concluded that big-box stores that didn’t include supermarkets or threaten fashion retailers could locate here.
“It all came out of our primary objective, which is to make neighbourhood centres – our walkable, local shopping areas and centres – as viable as we possibly could,” explained Randy Pecarski, acting assistant director of planning for city-wide and regional planning for Vancouver.
Retail uses typically accessed by vehicles, such as hardware and homeware shops, were among the uses seen as the best fit. This allowed Canadian Tire to return with a new proposal in 2008 that will complete its vision for three stores serving Vancouver. (The other two are on Cambie Street at West 7th and on Grandview Highway.)
The development will be approximately 220,000 square feet. Canadian Tire will occupy 116,000 square feet and offer 14 service bays; an additional 100,000 square feet will house a 30,000-square-foot Best Buy and a 12,000-square-foot Mark’s Work Warehouse. Restaurants are also planned for the site.
The obstacles to construction delayed but did not dissuade construction, said Clinton Elenko, associate vice-president, Western Canada, with Canadian Tire Real Estate.
“We had a plan for three stores, and with Cambie and Grandview [built] we felt it was the last hole in the market,” Elenko said. “And, quite honestly, under the zoning for the city, I don’t know where else you’d do it right now.”
Pecarski said no other proposals have come forward for the area, which also includes land between Manitoba and Yukon streets designated for community centres. Wal-Mart hasn’t come back to the city regarding proposals for the area, though some suggest it could take space in PCI Group’s planned Marine Gateway project at the foot of Cambie Street. (Wal-Mart didn’t return a call for comment.)
Canadian Tire’s project, which is set to open in fall 2012 and targets LEED (Leadership in Energy and Environmental Design) gold certification, underscores the potential for development.
“In our view, it’s doing its job, despite the fact that there’s still some land sitting there,” Percarski said.
Highways attract some developments, horses others: Cressey Development Corp., for example, is showing off the new equestrian centre at its High Point development in Langley. The centre is the crowning jewel of the 287-acre community, which will welcome journalists this week (but not this columnist) to “see how residents really live in this quiet, luxurious countryside retreat.”
With prices ranging from $529,900 for a half-acre tract to $1.8 million for an 8.5-acre parcel, 58 of the equestrian-oriented development’s 164 lots have sold.
The lifestyle theme of the project is underscored by its proximity to Township 7 Vineyards, which is highlighted as part of the local lifestyle. The oenophilic angle is something developers such as Adera Development Corp. and Morningstar Homes have also capitalized on.
Adera kick-started the trend in the Lower Mainland five years ago with the launch of the “Cabernet” phase of Veranda in Surrey’s Fleetwood neighbourhood, a project that sought a “relaxed, estate-winery atmosphere.”
More recently, Morningstar has seen successful with Pepin Brook, which includes a 29-acre vineyard and neighbours Neck of the Woods Winery (formerly Glenugie Estate). Pepin Brook has seen 160 of its 235 homes sell since its launch in late 2009.
What started out as a hot year in industrial real estate continues to warm up. Within hours of Avison Young releasing its survey of Metro Vancouver industrial markets headlined, “Recovery taking root in Metro Vancouver industrial market,” press releases announced the biggest-ever project by Beedie Group in New Westminster and Surrey’s release of 250 acres for sale at Campbell Heights. Beedie’s project is a 504,000-square-foot warehouse for tissue-maker Kruger (see “Metro Vancouver warehouse world booming – issue 1123; May 3-9), while the Campbell Heights release targets light-industrial users, particularly in the clean-energy sector.
Avison Young notes that low interest rates are driving the activity. Its report anticipates the deals to continue until interest rates start trending upward, which is unlikely until inflationary pressures increase.