The tony, established shopping district of Kerrisdale is undergoing a transformation, with more than half a dozen for-lease signs dotting the several blocks between West Boulevard and Balsam Street.
Some of the space has been taken by companies such as Kin’s Farm Market, Tim Hortons, Luminous Nail Spa and Sotheby’s International Realty Canada.
The largest empty space by far is the 9,400-square-foot former Pier 1 Imports Canada outlet at the corner of West 41st Avenue and Vine Street, which is owned by H.Y. Louie group of companies’ Branku Holdings.
Because H.Y. Louie also owns the MarketPlace IGA grocery chain, rumours have swirled that the space could soon be home to the neighbourhood’s only full grocery store. H.Y. Louie spokeswoman Wendy Hartley was quick to tell Business in Vancouver, however, that a MarketPlace IGA will not go in the space.
“It’s definitely a prominent spot and a good-sized space,” Colliers vice-president of retail Doug LePatourel told BIV. “Whatever goes in there will be fairly significant.”
He cited steadily rising density in the area as one reason why he believes the neighbourhood remains a strong retail strip.
Construction continues on One Kerrisdale Place, which will add three floors of condominiums above 2,700 square feet of retail space near West 41st Avenue and Yew Street.
Other densification could come if the City of Vancouver approves GBL Architects’ plan to replace a dilapidated two-storey building with a new, four-storey, 38-condominium, mixed-use development on West Boulevard near West 44th Avenue.
LePatourel said the recent spate of vacancies has softened lease rates in the prime few blocks between Balsam Street and West Boulevard on West 41st Avenue, but he added that the vacancies also provide a prime opportunity to get space while prices are lower.
“The for-lease signs have pushed down lease rates a little bit,” he said. “That happened on south Granville too. Typically there was zero vacancy on south Granville and then two or three years ago there were several. So vacancies definitely trend the rental rates down a bit.”
Rates in those prime blocks of West 41st Avenue now tend to be between $35 and $50 per square foot. That contrasts with rates that have touched $90 per square foot on south Granville Street and have touched $200 on Robson Street.
CBRE’s vice-president for retail, Michael Mylett, believes the vacancies are giving retailers the luxury to be able to choose from many different storefront sizes.
“Kerrisdale remains a strong retail neighbourhood,” he said. “Foot traffic is incredibly good and a lot of loyal customers go there. They shop at Hills [of Kerrisdale], do their banking, buy produce and bread and have coffee with friends. All of the coffee shops are always full.”
He added that although the area is often regarded as having an older demographic, there are students from the three area schools – Magee Secondary, Point Grey Secondary and Crofton House – walking around at lunch and after school.
Remaining vacant retail sites in the area, such as a former Ed’s Linens on West 41st Avenue
near West Boulevard, have attracted enquiries from several interested parties, said David McCann, who represents that building’s owners, John and Gary Anderson.
Michelle Hallaran, whose family company Marco Investments Ltd. owns more than 11,000 square feet in several buildings on West 41st Avenue, said that she has been fielding multiple enquiries related to her one vacancy – a 1,721-square-foot space that is leased to kitchenware store Call the Kettle Black until the end of November.
“What’s happening in the neighbourhood is great with all these new tenants coming in,” she said. “The new condo developments are also really good for the area.”
