ROBSON’S NEW TREND
Starbucks outlet next to suffer ‘for-lease’ sign
Empty storefronts dot fashionable Vancouver street as high-end retail landscape goes through a transition
One of Vancouver’s long-standing Starbucks will close at the end of May after 24 years in business.
When a “for-lease” sign is placed on the retail space at Robson and Thurlow streets, it will have plenty of company on Robson.
From the departed HMV to the bankrupt Blockbuster, empty stores dot Vancouver’s high-profile commercial street. West of Burrard, more than 20 retail properties on Robson sit empty. Realtors have taken note.
“I think you’re going to see a lot more American retailers moving in. Robson is like Rodeo Drive, it’s like Park Avenue. People want to be there to be there.”
— Howard Malachy of DTZ Barnicke
“For years, you’ve never seen lease signs up and down Robson,” said Sherman Scott, associate vice-president at Colliers International, which currently has a number of properties to lease.
“Now there certainly are, which is unusual.”
Scott said aside from the dodgy economy, clauses allowing building owners to tear the building down are giving store owners pause.
“I run into demolition clauses all the time,” he said. “It’s pretty tough to spend all the money outfitting the store, getting it up and going, and to be subject to [that].”
Nonetheless, he remains bullish on Robson’s long-term viability.
“I’ve seen a downward pressure on lease rates, the international climate isn’t that great [but] having said that, Vancouver’s a pretty popular place to be,” he said. “There’s a rejuvenation going on.”
Tourism Vancouver president Rick Antonson characterized the vacancies as part of a “transition” but believes in the street’s long-term vibrancy.
“Some international operators can anchor a street and draw traffic. What one always wishes to avoid is a generic street or city. [But] Robson Street will get through this transition and retain its reputation as having a healthy variety of retail outlets.”
Following the 2010 Olympics, prices climbed to new heights on robson. According to a report, the average rent last year was $240 US per square foot, trailing only Bloor Street in Toronto for Canadian supremacy.
“Expectations are changing on Robson. The value of real estate has increased,” said Mark Renzoni, managing director of CB Richard Ellis.
He did, however, admit “the economy is not as strong as we’d like.”
“There’s lots of noise around big deals, but the noise around smaller deals, it’s not as active as it was,” he added.
Renzoni said that certain blocks of Robson were looking at 12 to 18 months of “continued recovery.”
“The vacancy is a welcome change. It may be visibly concerning . . . but we will see a new trend for different users coming into the market place. And it just takes a little more time to adjust to rental rates.”
Meanwhile, Howard Malachy of DTZ Barnicke, which specializes in commercial real estate, was upbeat.
“I think you’re going to see a lot more American retailers moving in,” speculated Malachy.
“Robson is like Rodeo Drive, it’s like Park Avenue. People want to be there to be there.”