Shopping mall sites continue to be central to major redevelopment in the Lower Mainland.
Last week, Shape Properties released more details of its plan to redevelop the Brentwood Mall site in North Burnaby. The plan, which would take two decades to fully implement, aims to add two new residential highrises and additional retail and office space in the mall’s large parking lot.
The move adds to the large mixed-use Solo District under construction on the southwest side of the Brentwood Millennium Line SkyTrain station.
The developments near the Vancouver-Burnaby border will add retail space in a market that has relatively low vacancy levels.
According to Colliers International’s second-quarter Vancouver retail market report, shopping malls in Burnaby and New Westminster had a vacancy rate of 1.5%, the same percentage as on the North Shore and in the Tri-Cities area. Only Richmond and Vancouver had lower retail vacancy rates, which were below 1%.
Colliers said vacancy rates are expected to remain low in the medium term with the largest declines occurring in prime retail areas in inner suburban markets.
Strengthening retail sales should bolster the market.
According to Statistics Canada, retail sales on a seasonally adjusted basis in the Metro Vancouver region have edged up so far this year to $5.25 billion in August from $5.13 billion in January.
Sales for clothing, electronics and appliance, furniture and sporting goods stores have all risen up in Metro Vancouver since January.
Increased density at existing mall sites should continue to boost international interest in the region’s retail market, adding value to the assets at regional retail hubs throughout the Lower Mainland.
