Metro Facts in Focus | Policy Backgrounder Ofce Development in Metro Vancouver’s Urban Centres Importance of encouraging offices to locate in urban centres Encouraging offices to locate in Urban Centres, areas intended to Exploring the factors that influence be the region’s focal points for concentrated growth and locations where offices locate well served by transit, is a key element of Metro Vancouver’s This Facts in Focus Policy Backgrounder explores the factors that regional growth strategy – Metro Vancouver 2040: Shaping Our influence decisions about where to locate office development of Future (Metro 2040). In 2014, the region had 74 million sq. ft. different types. It describes how office development patterns vary of office space in 1,332 buildings that were 10,000 sq. ft. or by the type of office space and by the type of location across the larger. Regional policy direction in Metro 2040, adopted in 2011, region, specifically exploring the needs of office tenants and the responds to the significant number of office projects that were kinds of office accommodations that are offered. historically developed outside of Urban Centre locations, such as in suburban office parks. The Metro Vancouver Facts in Focus series is designed to promote a broad understanding of the key issues and Benefits of well-located office development opportunities that frame Metro Vancouver’s implementation Office development can include office components in stand-alone of the regional growth strategy and its mandate for delivering office buildings or within larger mixed-use buildings. Locating services and solutions for a livable region. office development in Urban Centres provides a critical mass and Metro Vancouver is a political body and corporate entity mix of urban activities to support other complementary uses and operating under provincial legislation as a ‘regional district’ amenities, including locating housing and employment in proximity and ‘greater boards’ that deliver regional services, policy and to one another. Focusing office development in Urban Centres political leadership on behalf of 23 local authorities. These benefits livability and the regional transportation system in a local authorities comprise 21 municipalities, one electoral number of ways: area, and one Treaty First Nation. Providing timely research • enhancing accessibility of services and amenities and analysis of regional issues is an important service offered • supporting the development of complete communities by Metro Vancouver. • reducing vehicle commutes and employee transportation costs • protecting land for other uses • complementing commercial and residential land uses • increasing the vibrancy and success of Urban Centres 2 Office Development Contents A. Regional planning context and goals ...........................4 B. Factors that influence office development ...................6 C. Metro Vancouver’s office building inventory ..................9 D. Towards a regional dialogue .......................................19 Office Development 3 A. Regional planning context and goals Metro 2040: Shaping Our Future, (Metro 2040), the • Better access to, and use of, transit regional growth strategy, advocates for commercial • Less reliance on vehicles for commuting, resulting and employment growth, including office development, in less congestion to be located in Urban Centres and Frequent Transit • Support for surrounding retail, residential, and Development Areas (FTDAs). institutional uses • Better access to a range of amenities for office Urban Centres are intended to be the region’s primary workers, such as area shops and services focal points for concentrated growth, employment and • Improved ability to attract and retain workers services, higher density housing, commercial, cultural, • Improved vibrancy and success of Urban Centres entertainment, institutional and mixed uses, supported • Contribution to complete communities by frequent transit service. Metro 2040 identifies 26 Urban Centres of varying scales and characteristics, These benefits can be grouped into three categories: distributed throughout the region, including the Environmental, through reduced land, resource and Metro Core (downtown Vancouver and the Broadway energy consumption, and lower greenhouse gas Corridor), Surrey Metro Core, 7 Regional City Centres, emissions associated with higher density development and 17 Municipal Town Centres. located in transit accessible places; Frequent Transit Development Areas (FTDAs) Social, by providing accommodations for office are additional priority locations to accommodate employment in Urban Centres at locations accessible concentrated growth, designed to complement the to the region’s workforce; and network of Urban Centres. FTDAs are located along TransLink’s Frequent Transit Network (FTN), where Economic, by facilitating business growth in transit service runs at least every 15 minutes in both office accommodations that reflect the economic directions most of the day, every day of the week. shift towards a growing office employment profile (professional, commercial, services). There are a number of benefits to locating office space and associated employment in these locations, including: Photo by Rod Nevison 4 Office Development METRO VANCOUVER URBAN CENTRES AND FREqUENT TRANSIT NETwORk Lower Capilano Lonsdale Lynn Marine Valley Ambleside Marine Dr. Lower East Lynn 3rd Ave Coquitlam Vancouver Inlet Metro Core Brentwood Burquitlam UBC Lougheed Port Coquitlam Cambie Oakridge Metrotown FTDAs Edmonds New Pitt Maple Westminster Meadows Ridge 104th Ave Surrey Guilford Richmond Metro Centre Fleetwood West Fleetwood Willoughby Newton East Clayton Cloverdale Langley Ladner Aldergorve Semiahmoo N Regional City Centres Municipal Town Centres Frequent Transit Network Rapid Transit Lines and Stations (exisitng and under construction) Frequent Transit Urban Containment Boundary Sea Bus West Coast Express Development Areas Office Development 5 B. Factors that influence office development Office development has a number of qualitative Demand in the Metro Vancouver office market is characteristics related to both tenant needs and generally due to the growth of existing tenants, not different locations, including: building features, due to an economic boom or because the region is proximity to amenities and transit, and urban form able to attract head offices from elsewhere. Law firms, and density. These attributes influence where tenants financial, and professional offices have the greatest choose to locate, and the kind of office development propensity to locate in larger Urban Centres. different locations can attract. Different types of office tenants have Although the Metro Vancouver office market functions different needs and priorities as one regional economy, and is impacted by The size, design, features, price, and location of macro-level factors, there are distinct geographic offices vary throughout the region to meet the variety sub-regions. Each one has its own characteristics and of tenant needs. Conversely, decisions about where unique offerings. This diversity of types and locations to situate offices varies by the type of office tenant of office development addresses the space needs and by location features. Compared to other North of a variety of office tenants in the region. Although American markets, Metro Vancouver has fewer large the office market is dominated by Vancouver, other head offices, and many smaller sized office tenants. smaller markets serve other roles and needs, with each market offering its own set of opportunities and Tenants seek different types of office accommodations challenges. to meet their particular business needs. Some of the criteria considered by tenants when selecting office There is a wide range of office tenants with different accommodations include: needs who situate themselves in the region in ways to best meet their needs. This variety ranges from • Cost (e.g. lease rate, building management, corporate headquarters or legal offices that want property taxes) and tenant inducements premium space in downtown Vancouver, to regional • Accessibility of transit, roads, and parking serving branch offices in Regional City Centres, • Current space needs and the potential for to local servicing businesses, such as medical, future expansion dental, and accounting that need to be readily • Space availability and timing accessible to the public. Photo by Rod Nevison 6 Short Sea Shipping in Metro Vancouver 6 Office Development • Office space and building design features – additional 22% was located within 400 metres (5 efficient and large floorplate design minute walk) of bus service on the Frequent Transit • Requirement for non-office components (e.g. Network (FTN). Most of the new office buildings warehouse, storage, flex space) in downtown Vancouver have direct access to a • Surrounding land uses number of rapid transit lines, with other major office • Area features and amenities projects in the region locating adjacent to rapid • Desire for prestigious locations and client transit (some in Urban Centres, some not), such accessibility as Metrotower III in Metrotown, Broadway Tech at Renfrew Skytrain station, the Brewery District • Proximity to an airport at Sapperton Skytrain station, and Anvil Centre in • Proximity to employees, customers, suppliers, downtown New westminster. competitors, and other corporate operations • Quality of property management service Between 1990 and 2014, 3.8 million sq. ft. of • Green