9263 replies to this topic

[Victoria Watcher]

Ya they opened in west shore a year or two back.

[aastra]

 

Not sure how much demand there is to be downtown anymore? A lot more condos downtown but seems like almost less people shopping downtown.

 

I'm starting to wonder if the decks of easy-to-access free parking at the shopping centres might actually be a legitimate incentive for a fair number of people. Somebody should launch a study.

 

Like I say, imagine what downtown Victoria would be like right now if the 21st-century residential boom hadn't happened. It would be bleak.

 

In a sane reality methinks the rents would be dropping and the downtown commercial scene would be as varied and interesting as it's ever been because of it. But our modern world is all about contradicting those natural processes as best we can, so we seem to be maintaining high rents in the face of fewer takers. Seriously, unless my eyes deceive me there's going to be a glut of brand spankin'* new commercial space coming soon on Chatham and Herald.

 

I gotta say, I really like the bright and pleasant vibe of Mod and the Jukebox on the 1000-block of View Street. Great ground floors. I didn't fully appreciate their appeals until that dark and heavily fortified new building under construction at View and Vancouver started taking shape. It really drives home the point re: downtown needs to be bright and inviting, not dark and discouraging.

 

*no offense intended to spanky123

Edited by aastra, 12 June 2025 - 06:07 PM.

[Mike K.]

[Barrister]

Who would have guessed that the parking lots at the big malls would have been a draw for so many people.

 

Any truth to the rumor that Birks Jewelry is opening up a branch at Vancouver and Pandora?

[aastra]

^You must be pulling my chain.

[Mike K.]

That’s a bit rich.

[aastra]

It will be a gold day in hell, for sure.

[aastra]

Although I do appreciate Barrister's optimistic appraisal.

[Matt R.]

Would be a birk and enter in no time.

[aastra]

 

Would be a birk and enter in no time.

 

Only if they don't keep watch.

[conga]

In a sane reality methinks the rents would be dropping and the downtown commercial scene would be as varied and interesting as it's ever been because of it.

 

I'm by no means an expert on this matter, but I feel like more needs to be done to make leaving a commercial space unoccupied expensive.

 

Instead of contributing to a vibrant neighbourhood, empty store-fronts contribute to urban blight, and some blocks seem stuck in a grim feedback loop of despair that gets harder and harder to turn around.

 

That's how I see it anyways, but what do I know?

[Mike K.]

It’s a tough situation for all involved. A landlord has to foot the operating costs of that space, plus the property tax, plus the value of the building suffers (unless it’s a development opportunity). But even then, it’s not like a development opportunity pays you dividends as your building sits empty, the owners are still carrying the cost and as we see in today’s market, what they could have sold four years ago for $4 million is not likely to fetch $3.5 today.

[Barrister]

I am surprised that the merchants are having trouble since we were assured that the bicycle lines would seriously increase business downtown. We have spent tens of millions on housing first and wrap around services so I assume there is no druggie problem anymore.

[conga]

It’s a tough situation for all involved. A landlord has to foot the operating costs of that space, plus the property tax, plus the value of the building suffers (unless it’s a development opportunity). But even then, it’s not like a development opportunity pays you dividends as your building sits empty, the owners are still carrying the cost and as we see in today’s market, what they could have sold four years ago for $4 million is not likely to fetch $3.5 today.

 

It is tough, and i recognize that. To me, it's a "**** or get off the pot" situation. Lower the rates when the market is dictating that you do so, or sell to someone who will. It's hard to imagine leaving a spot vacant for several years is good business.

[Mike K.]

That’s the thing though, right? Who wants to buy a building that is having trouble leasing a unit?

A new buyer won’t get financing if they can’t lease at a high enough rate to cover the mortgage. And the seller won’t sell at a low enough rate to where a fire sale lease rate might attract a tenant. It’s always ideal to sell a building fully leased. So the common route is leaving a space empty, taking the hit on the operating cost and potentially using it to your advantage as a write off. But it’s never ideal to have empty space.

[conga]

That’s a valid point, and I understand the reasoning. Owners may also avoid lowering lease rates because they believe it could affect the value of nearby properties, including others they hold.

 

I certainly don’t know all the details of what’s currently for sale or what kinds of price drops might already be happening. Maybe there’s already some pressure on the owners of these sites. I just keep seeing the same spaces sitting empty and find it hard to understand why there isn’t more effort to bring them back to life in a way that benefits both the owner and the community.

[Mike K.]

Also, many commercial properties will be staring down interest rate increases if they had secured mortgages or remortgaged when rates were low, and they don’t get the rate consumers do on residential properties.

So if you have, let’s say, a 7% mortgage rate on a $2.5 million mortgage on a small commercial building with 7,500 sq ft, you cannot drop the lease from $25 to $15, the numbers just won’t work. So you hold out and hope someone comes along.

[conga]

That makes sense, and I appreciate the breakdown. I hadn’t fully considered how much more pressure those mortgage terms could add. I wish I had answers for how to make it all work in a way that keeps spaces active and sustainable, but I don’t. I just find myself stuck between understanding the economics and still feeling concerned about the long-term impact of all the vacancies

[conga]

Might be a false alarm, but something may be happening at the old Laundrette next to Fantastico at Quadra and Kings.

 

The space has been left mostly unused since the pandemic, and there is now some plywood covering the door and windows. They might just be replacing the windows, but I noticed the door was covered initially, and the windows looked fine, so I'm thinking something may be in the works.

[Victoria Watcher]

Might be a false alarm, but something may be happening at the old Laundrette next to Fantastico at Quadra and Kings.

 

The space has been left mostly unused since the pandemic, and there is now some plywood covering the door and windows. They might just be replacing the windows, but I noticed the door was covered initially, and the windows looked fine, so I'm thinking something may be in the works.

 

They had a suspicious fire.

 

https://www.vicnews....t-blaze-8066777

Edited by Victoria Watcher, 16 June 2025 - 10:40 PM.