UBC Theses and Dissertations

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UBC Theses and Dissertations

Analysis of growth of Vancouver's central business district Jamieson, William Sinclair 1972

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CI ANALYSIS OF GROWTH OF VANCOUVER'S CENTRAL BUSINESS DISTRICT by WILLIAM SINCLAIR JAMIESON B.Comm. U n i v e r s i t y of Saskatchewan, 1965 A THESIS SUBMITTED IN PARTIAT. FULFIJJyTENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION i n the Faculty of Commerce and Business Administration We accept this thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COJJJMBIA August, 1972 In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the requirements f o r an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia , I agree that the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e fo r reference and s tudy . I f u r t h e r agree tha t p e r m i s s i o n for e x t e n s i v e copying o f t h i s t h e s i s f o r s c h o l a r l y purposes may be gran ted by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . I t i s unders tood that copying o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l ga in s h a l l not be a l lowed wi thou t my w r i t t e n p e r m i s s i o n . Depa rtment The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8, Canada ABSTRACT The primary purpose of this thesis is to examine development of Vancouver's Central Business D i s t r i c t to test the hypothesis that "growth takes the path of least resistance" within the central core of Vancouver. Vancouver's city centre is considered to be the office head-quarters of the Lower Mainland Area. Fulfillment of this role has resulted in the construction of twenty new office buildings in the past six years. This represents an increase of almost three million square feet which is 507. over the standing stock of 1965. The researcher had an opportunity to participate in this very active real estate market and as a result of such participation formulated the above growth hypothesis. This study bri e f l y reviews existing theories of c i t y growth and follows with a history of growth in Vancouver's central core. The thesis then describes the mechanics and results of a land use study of Vancouver's Central Area. The results of this extensive land use study are used to test the growth hypothesis mentioned in the i n i t i a l chapter of this abstract. This test shows that growth in Vancouver does take the path of least resistance. This resistance to development may be tangible or intangible or a combination of both. Physical resistance arises from current patterns of building and/or land use — i.e. the density of the standing stock. Given the same relative location and degree of desirability, vacant land w i l l be developed before underdeveloped land. Thus i f there are well located vacant sites within the core i t is easy to predict the direction of growth. For underdeveloped areas the study employs indices such as floor space index, the value of building per square foot of land area, and value of building per square foot of building area, to determine which sites are the most under-developed and would offer the least resistance in terms of cost to assemble for redevelopment purposes. The study also reviews factors such as the pattern of land and building ownership. The study concludes that these are intangible factors that can cause resistance to growth and must be considered when examining growth in the C.B.D. The study proceeds a step further by using the "least resistance" theory to identify areas of future growth. The area which offers the least resistance is chosen and the economic model developed indicates that development on the site would be profitable, thus could be considered a lik e l y area for future growth. TABLE OF CONTENTS CHAPTER Page I INTRODUCTION 1 II VANCOUVER URBAN LAND USE: THEORIES AND STUDIES 6 I. THEORIES OF URBAN LAND USE 6 Traditional Theories of Urban Land Use 6 Contemporary Theories of Urban Land Use 7 II. LAND USE STUDIES:VANCOUVER 9 III LAND USE & OWNERSHIP CHARACTERISTICS: CENTRAL BUSINESS DISTRICT 12 I. HISTORY OF GROWTH IN VANCOUVER 12 II. LAND USE STUDY AND ANALYSIS 12 Delimiting the Central Business Di s t r i c t 15 General Land Use 18 Floor Space Index 19 Assessed Land Values 22 III. STANDING STOCK 27 Building Condition 27 Assessed Value of Buildings Per Square Foot of Land Area 32 IV. OWNERSHIP OF LAND & BUILDINGS 33 Building Ownership 34 Land- Ownership 36 V. VACANT LAND 38 Amount of Vacant Land and Its Location 39 Ownership of Vacant Land 40 Length of Vacancy 44 i i CHAPTER Page VII. LAND ASSEMBLY 45 VIII. SUMMARY AND CONCLUSIONS 50 IV AREAS OF POTENTIAL DEVELOPMENT 53 I. SITE QUALIFICATIONS 53 II. SITE SELECTION 54 V FEASIBILITY ANALYSIS FOR DEVELOPMENT OF BLOCK 62 57 I. POPULATION GROWTH 57 Historic Trends 57 Population Projection .58 II. BRITISH COLUMBIA'S ECONOMIC BASE 59 III. OFFICE FUNCTIONS AND TRENDS 61 Historic Office Space Supply 66 Competitive Office Develop-ment Proposals 71 Estimated Office Space Supply 1970-1980 76 IV. VANCOUVER CBD:OFFICE MARKET DEMAND ANALYSIS 79 Future Office Space Demand 79 Type of Demand 83 V. MARKET CONCLUSIONS 87 VI. PROPOSED DEVELOPMENT 89 Site Components 89 VII. PRELIMINARY DEVELOPMENT CONCEPTS 91 Retail 92 Entertainment 92 Hotel 94 Office Structures 94 i i i Page Parking 94 Development Model 95 Northwest Corner . 96 Southwest Corner 96 Stage III - Mid Blook Development 97 Development Cost Schedules 99 VIII. CONCLUSION 115 BIBLIOGRAPHY 116 APPENDIX A - LAND USE STUDY 118 APPENDIX B - LOWER MAINLAND'S ECONOMY 164 iv LIST OF TABLES TABLE Page I FLOOR SPACE INDEX 23 II BUILDING CONDITION VERSUS BUILDING OWNERSHIP D.L. 541 30 III BUILDING CONDITION VERSUS BUILDING OWNERSHIP D.L. 185 31 IV BUILDING CONDITION VERSUS BUILDING OWNERSHIP D.L. 185 and D.L. 541 35 V VACANT LAND OWNERSHIP 43 VI LAND ASSEMBLY 1949-1969 47 VII USE OF ASSEMBLED LAND 1949-1969 49 VIII BLOCK 42 PACIFIC CENTRE REDEVELOPMENT 56 IX REDEVELOPMENT AREA NO. 1 57 X REDEVELOPMENT AREA NO. 2 58 XI CBD OFFICE SPACE 1950-1970 67 XII VANCOUVER CBD : MAJOR OFFICE DEVELOPMENTS 70 XIII VANCOUVER CBD : ESTIMATED OFFICE SPACE SUPPLY 77 XIV VANCOUVER CBD : OFFICE SPACE SUPPLY PER CAPITA .77 XV VANCOUVER CBD : OFFICE SPACE SUPPLY TRENDS 78 XVI VANCOUVER CBD : OFFICE SPACE DEMAND ANALYSIS TO 1980 85 XVII VANCOUVER CBD : POST WAR OFFICE SUPPLY TRENDS 86 XVIII BLOCK, STREET AND BUILDING AREAS DISTRICT LOT BASIS 122 XIX LAND AVAILABLE FOR DEVELOPMENT 124 XX VACANT LAND : LENGTH OF VACANCY 133 Table fage XXI VACANT BUILDING SPACE 135 XX I I LAND OWNERSHIP 137 X X I I I LAND AREA : LENGTH OF OWNERSHIP 1 3 9 XXIV VACANT LAND : LENGTH OF OWNERSHIP 141 XXV LOCATION AND SIZE OF SELECTED COMMERCIAL CENTRES 144 XXVI BUILDING USE CLASSIFICATION (1969) 151 XXVII BUILDING USE INVENTORY 1964 VERSUS 1969 159 XXVIII OFFICE USE INVENTORY 160 XXIX RETAIL INVENTORY CBD STUDY AREA 161 XXX TOTAL LABOUR FORCE 169 .XXXI DOMESTIC EXPORTS BY LEADING PRODUCT 170 XXXII SERVICE EMPLOYMENT AS A PERCENTAGE OF TOTAL 176 EMPLOYMENT XXXIII PERCENTAGE DISTRIBUTION OF EMPLOYMENT IN THE LOWER MAINLAND - BY INDUSTRY GROUP 1951-1981 177 XXXIV LABOUR FORCE IN BRITISH COLUMBIA 1951, 1961, 1966 178 AND 1975 FORECAST XXXV LABOUR FORCE IN BRITISH COLUMBIA 179 v i LIST OF FIGURES FIGURE Page I GROWTH OF VANCOUVER'S CBD 14 II STUDY AREA 17 III DENSITY RATIOS 21 IV ASSESSED LAND VALUE PER SQUARE FOOT OF LAND AREA 2 5 V LAND USE AND DENSITY MAP 29 VI POTENTIAL AREA OF REDEVELOPMENT 55 VII OFFICE BUILDING DEVELOPMENT:PAST DECADE 69 VIII OFFICE SPACE:SUPPLY AND DEMAND 84 IX SITE PLAN:PROPOSED REDEVELOPMENT 98 X VACANCY RATE - OLD BUILDINGS 162 XI VACANCY RATE - NEW BUILDINGS 163 CHAPTER I INTRODUCTION The rate of growth of world population has been increasing s t e a d i l y since 1650. Doxiadas has stated: "That on the basis of general data and c r i t e r i a the earth's present population r a t i o of 407. urban and 607. r u r a l w i l l eventually change to a r a t i o of 95.77. urban and 4.37. r u r a l . S u c h s t a r t l i n g f i g u r e s i n d i c a t e the enormous task ahead f o r c i t y planners and private enterprise a l i k e i n developing s u i t a b l e places to accommodate the s o c i a l and economic i n t e r a c t i o n associated with t h i s population increase. Many f e e l that we have reached a crossroads i n c i t y growth, and i n the l a s t few years counterforces have spurred new i n t e r e s t i n the c e n t r a l core. I t i s generally f e l t that we must maintain and r e v i t a l i z e the c i t y core i n t o a f u n c t i o n a l centre f o r the metropolitan area. Homer Hoyt f e e l s the economic j u s t i f i c a t i o n of r e b u i l d i n g downtown i s to be found i n the r e a l f u n c t i o n of the c i t y centre. "The o f f i c e headquarters 2 of the metropolitan area or of the region." Vancouver's c i t y centre serves t h i s f u nction and r e l a t i v e to past years, those of 1965 - 1971 have provided a resurgence of the CBD , \>oxiadas, "Between Dystopia.and Utopia" (London :Saber Press 1966) Three lectures d e l i v e r e d a r T r i m t y College) 2 A.M. Weimer and H. Hoyt, Real Estate (New York: The Ronald Press Co.) a paper e n t i t l e d Economic Climate f o r Future Urban Development p. 637. 2 in Vancouver. Twenty new office buildings have been completed or are nearing completion. I n i t i a l phases of Project 200 and Pacific Centre are under construction or completed, and should breathe new l i f e into the CBD. Meanwhile, announcements concerning transportation systems have focussed attention upon the CBD and some of the problems associated with this growth. The researcher has been actively involved in Vancouver's real estate market for five years. Two of these years were devoted specifically to office space leasing and land assembly in the Vancouver's CBD. During this period of time the researcher had a chance to observe and participate in some of the decision making i n the private sector leading to growth in Vancouver's central core. It became readily apparent that decisions leading to development within the core were predicated upon the a v a i l a b i l i t y of suitable sites for development and the economic f e a s i b i l i t y of the proposed development upon these sites. Because of the complex decisions required for these large developments i t is extremely d i f f i c u l t to establish an a l l encompassing theory explaining and predicting growth within the core. It is conceivable however that i f a theory of growth were developed, part of the theory would be that "growth i n Vancouver's CBD takes the path of least resistance". This is the basic underlying theme of the paper; the resistance factors are identified and examined and then used to predict future growth areas in the core. The study then goes a step further to a f e a s i b i l i t y analysis to determine i f a developer could find economic jus t i f i c a t i o n to develop the si t e . 3 This resistance to development may be tangible or intangible or a combination of both. Physical resistance arises from current patterns of building and/or land use; i.e. the density of the standing stock. It is assumed that given the same relative location and desirability, vacant land w i l l be developed before underdeveloped land is redeveloped. Thus i f there are well located vacant sites within the core i t i s easy to predict the direction of growth. It is when vacant sites are at a premium that the underdeveloped sites are considered for redevelopment. Block 42, of Pacific Centre i s an example of large scale redevelopment. A redevelopment situation is much more d i f f i c u l t to predict the direction of growth because i t involves displacing established land and building uses. This study uses indices such as a floor space index, the value of building per square foot of land area, and the value of building per square foot of building area to determine which sites are the most underdeveloped and hence offer the least resistance in terms of cost to assemble for redevelopment purposes K.E. Boulding, Toward a General Theory of Growth, taken from "Population Theory and Practice," edited by J.J. Spengler and O.D. Duncan (Glencoe The Free Press, 1956) p. 120-121. These problems are: a) The affects resultings from growth i t s e l f In c i t i e s the existing spatial structure and building investory are a constraining framework for a change. b) The nature of urban investment as reflected in the lengthy physical l i f e inherent i n real property; consequently by the change of physical plant i s slow and costly. c) Inadequate parking and poor central area t r a f f i c flow. ^ _, e^ n u m b e r of landowners create obstacles to the assembly of land necessary for larger integrated developments. 4 The intangible resistance factors which inhibit growth in the CBD are the patterns of land and building ownership. The current system of ownership permits individuals to control land as small as 3,000 square feet in area; thus any large assembly could involve a number of owners, any one of which may not want to s e l l his property. This means that any one individual could be a stumbling block to an assembly forcing the developer to go elsewhere. The study examines not only the ownership of land but also ownership of buildings to determine the type of people investing in the core and the quality of building each type of owner control. This information is then applied to those sites which have the tangible factors indicating redevelopment to determine i f the intangible factors can be overcome and an assembly carried out. The second chapter reviews theories of land use and evaluates these theories to gain insight into the nature of urban growth and then draw any implications these theories may have for the thesis. Included in this chapter is a review of past studies of Vancouver's CBD. Chapter three touches b r i e f l y upon the mechanics of the land use study which provides the basic s t a t i s t i c a l information for analysis in this paper. Tangible and intangible resistance factors are identified and examined and a conclusion drawn regarding their implication on the growth of the CBD. The chapter continues by developing indices describing ownership and land use and compares them to indices for those sites within the core that have recently been developed. Using this comparison and other land use information the study identifies areas of potential development. 5 The fourth chapter examines the potential sites and selects that site which offers the least resistance to development for a f e a s i b i l i t y study. The f i f t h chapter outlines a development concept for the chosen site and then carries out an economic f e a s i b i l i t y analysis for develop-ment of the site. The demand side of the market is analyzed and projected future demand is compared to projected supply to identify growth opportunities. The chapter concludes by establishing a model encompassing development costs financing and operating revenues and expenses to measure the p r o f i t a b i l i t y of the development. 6 CHAPTER II VANCOUVER URBAN LAND USE : THEORIES AND STUDIES I. THEORIES OF URBAN LAND USE The great diversity of North American c i t i e s makes i t d i f f i c u l t to set forth general explanations of land use patterns. Most shifts in the patterns of land uses result from the decisions of people either as individuals, businesses or institutions. It i s d i f f i c u l t to anticipate what motivates decision makers at any one time and they may react differently from their counterparts in other regions. Nonetheless there are several broad theories of urban land use which do roughly describe city growth structure i n a general sense. Real property i s characterized by f i x i t y of location, permanence of building, investment, durability through time, and v a r i a b i l i t y of product and ownership. Because of this heterogeneity, and the existence of a large and widely distributed body of buyers, and sellers, the real estate market is a relatively imperfect one requiring a variety of theories of urban land use. Traditional Theories of Urban Land Use This chapter reviews the more prominent theories of urban land use. In the 1920's Burgess described the arrangement of land uses and 7 the pattern of growth as forming general concentric circles around the cit y centre. Growth takes place by the simple expansion of these zones outward, each zone invading the adjacent outer zone. Homer Hoyt believes that this theory i s obsolete because the automobile makes possible the wide dispersal of people over a metropolitan area."' Hoyt feels that residential growth within the city shows sectoral variation and tends to grow outward along distinct r a d i i . ^ Harris and Ullman modified the sector theory and advanced the multiple nuclei concept. They stressed the impact of transportation, topography, and relative factors, and f e l t that land uses especially businesses, tended to cluster i n nuclei throughout the ci t y . Contemporary Theories of Urban Land Use Ratcliff modifies the traditional theories somewhat and for purposes of this paper provides a more functional approach in describing urban land use structure. According to R a t c l i f f : ^ " . . . the locational pattern of urban areas is a reflection of basic economic forces and that this arrangement of people, buildings, and a c t i v i t i e s in urban concentrations at strategic points on the web of transportation lines i s a part of the economic mechanism of society. This hypothesis is supported by the observation that the primary factors in establishing and i n changing this pattern of urban areas are economic." E.W. Burgess, The Growth of the City edited by R.E. Park, E.W. Burgess and R.D. McKenzie. (Chicago: University of Chicago Press) 1925. 6A.M. Weimer and H. Hoyt., Real Estate, (New York: The Ronald Press Co. 1966) p.292. ^R.A. R a t c l i f f . Urban Land Economics, (New York: McGraw-Hill Book Co. 1949) p.368. 8 Each urban s i t e a t a point i n time i s f i x e d w i t h i n a set of space r e l a t i o n s h i p s with every other s i t e and i t s use. These space r e l a t i o n s h i p s change of course with changes i n the transportation network. The use which w i l l be the successful bidder f o r the s i t e w i l l be that which can take the greatest economic advantage of the p a r t i c u l a r s p a t i a l r e l a t i o n s h i p of that s i t e to every other s i t e , that i s , that use which has the greatest aggregate saving i n convenience. P r i v a t e enterprise makes i t s choice based on the p r o f i t motive; that land use which can pay the highest rent to the landlord becomes the successful bidder. Usually the same type of land uses can pay the same amount of s i t e rent, so one finds that d e f i n i t e patterns of land uses evolve. According to R a t c l i f f there i s a basic land use structure "composed of several f u n c t i o n a l areas i n which are concentrated the major urban a c t i v i t i e s such as r e t a i l i n g manufacturing, r e c r e a t i o n , g and so on." R a t c l i f f i s not content to provide a s t a t i c theory of urban land use so he provides a theory of urban dynamics that he describes 9 as "the economics of succession". B a s i c a l l y he provides f o r changes that take place w i t h i n the c i t y when various urban land uses are faced with forces created by changes i n the s p a t i a l s t r u c t u r e . I t i s a s i t u a t i o n where a new use outbids the e x i s t i n g use. R a t c l i f f b elieves the same forces are involved when succession requires the replacement of an e x i s t i n g structure. The r a t i o n a l e f o r redevelopment depends on the o R. U. R a t c l i f f , o_. c i t . p. 368 9 R. U. R a t c l i f f , Real Estate A n a l y s i s , (New York: McGraw-Hill Book Co. 1961) p. 132. 9 individual owner's estimate of the anticipated income from a new structure, compared to the cost of that structure, the costs of removing or demolishing the existing structure, and the income that would be lost by removing or demolishing the existing structure.^ II. LAND USE STUDIES : VANCOUVER Downtown Vancouver has been the subject of many studies and reports. They vary from a description of land uses i n the downtown area to studies of the sociological problems associated with blight i n the CBD. This section b r i e f l y describes some of these past studies. The City Planning Department has published many reports pertaining to Vancouver's CBD. In 1955 i t published a twenty year development p l a n . ^ In this report the Department identifies nine land use zones in Downtown Vancouver and offers a general description of each land use zone supported by some empirical data. Land use data in the study is used as a basis for comparison with findings in the present study to determine trends i n downtown land use. In 1964 the City Planning Department published two reports 12 dealing with the future use of Blocks 66 and 67. The reports contain very l i t t l e data but provide an excellent discussion of the functions of the CBD with special reference to locating the CBC Headquarters or a museum or sports coliseum on that s i t e . ^ I b i d . , p. 132 •^Technical Planning Board, Vancouver, B.C. A report prepared for City Council entitled Down town Vancouver 1955-1976. 12 The two reports are Redevelopment in Downtown Vancouver Report No.5 July 1964: and Kitsilano - CBD A Brief Prepared For the Vancouver City Council Sept. 28, 1964. 10 In 1963 Larry Smith and Co. completed an economic analysis 13 of Vancouver's CBD. This study included a land use study as well as a building space inventory. Larry Smith has made projections of the demand for downtown r e t a i l and office space, and has studied some special areas within the CBD and their problems. Using hindsight i t is easy to c r i t i c i z e the projections i n this report since they have fall e n well short of the mark. Smith projected a supply of 6,870,000 square feet by 1971 and 7,290,000 square feet by 1976 and we have already surpassed the 1976 projection. It appears that he assumed more suburbanization than has happened. The data in Smith's study w i l l be used as a s t a t i s t i c a l base from which a comparison can be made with information secured by this researcher, to give a dynamic picture of land use in Downtown Vancouver. Hopefully trends of land use w i l l emerge from this comparison that can meaningfully be applied to projection of future requirements in Vancouver. In December of 1968 the Planning Department published the f i r s t part of a three stage report in which a framework for evaluation of certain developments i s stated. Part I deals with some of the existing 14 15 issues and trends. In these and other studies of the CBD, there is 13 Larry Smith and Co., Central D i s t r i c t Redevelopment in Downtown  Vancouver, 1963. 14 The Vancouver Planning Department, Part I - Downtown Vancouver  The Issues, December 1968. '""'Some other studies are: Restoration Report 1969, Vancouver City Planning Dep't, Urban Renewal, Vancouver, B.C. August 1966, Vancouver City Planning Dep't, Vancouver Downtown Parking 1962 by City Engineering Dep't, Vancouver - The Downtown Business D i s t r i c t a preliminary report prepared for the Town Planning Commission by Holland, Bartholomew, and Associates February 1946. a noticeable lack of data, hence only very general conclusions can be drawn concerning land use in Downtown Vancouver. Because there are few secondary sources of land use information available the researcher had to carry out an extensive land use study. 12 CHAPTER III LAND USE AND OWNERSHIP CHARACTERISTICS : CENTRAL BUSINESS DISTRICT I. HISTORY OF GROWTH IN VANCOUVER This chapter bri e f l y reviews the history of growth of Vancouver's CBD. since i t s inception in the late 1800's, to the present situation which finds Vancouver in a six year building boom unprecedented i n the history of the city. Having established the background for the study, the chapter turns to a comprehensive examination of land use and owner-ship characteristics of Vancouver's CBD. Data that i s immediately relevant to growth i s discussed in this chapter. Additional land use information as well as the mechanics and limitations of the study are found in Appendix A. This section examines such pertinent data as floor space indices, assessed land values, ownership of land and buildings, condition and value of the standing stock, ownership and amount of vacant land, and f i n a l l y land assembly activity in the study area. Metropolitan Vancouver, like other North American communities has developed as a part of our social and economic system. Land u t i l i z e d by specific a c t i v i t i e s and the spatial distribution of these ac t i v i t i e s reflect the requirements of this system. As a result, the standing stock, that i s , the total inventory of buildings, is under constant pressure to meet changing needs and conditions as required by the system. The relative i n f l e x i b i l i t y and durability of real property 13 results in problems to the owners, tenants, and ci t y planners alike, as they attempt to adapt to the changing needs of the system. These constantly changing needs, coupled with physical and economic obsolescense of the standing stock, inevitably result in changes in u t i l i z a t i o n . This phenomenon is readily apparent i n Vancouver. The original office and r e t a i l centre was established in the late 1890"s in the area east of Cambie Street and north of Hastings Street referred to as Gastown (Figure 1). Also in 1900, another r e t a i l centre had been established at the intersection of Georgia Street and Granville Street with the construction of the Hudson's Bay Co. department store. At the turn of the century, Woodward's Department Store was b u i l t on the southwestern periphery of the Gastown Centre, on the 100 Block West Hastings Street. Specialty r e t a i l shops sprung up on Hastings Street catering to the pedestrian t r a f f i c generated by these two depart-ment stores. Gradually the r e t a i l centre moved westward from the Gastown area to Hastings Street between Woodwards and Eatons department stores. Vancouver as we know i t today consists of two r e t a i l centres; one, anchored by the Hudson's Bay Co. Department store at Granville Street and Georgia Street with i t s axis along Granville Street from Smithe Street on the south and Hastings Street on the north. The other centre, i s the result of the westward growth along Hastings Street from the Woodward's Department Store to Eatons. Both centres were well established before 1945 and u n t i l Block 52 of Pacific Centre, there has been no significant construction of r e t a i l space in the CBD. v. QED Q0QL3K t i ' O R S O N — I 1 I J ZD • • • • • • O O C T J E ]nDPQQci_iqn J ^ l j U U O L A J U L - i DDHflQDDDDfe OQGObOT • • LZ3 EZK3 O • O QDBQD 01 Growth of Vancouver's CBD - • LEGEND: Late 1800's and Early 1900's Early 1900"s - 1945 •Vst H.w, 1,1 - 1964 1964-1970 15 Office development also moved westward from the Gastown area along Hastings and Pender Street as far as Burrard Street. By 1964, just before the recent building boom in commercial office space, the centre was loeated on Hastings Street and Pender Street between Burrard and Seymour Streets. Developments in the past seven years, include the construction of approximately four million square feet of 16 office space; the increasing importance of the "Golden Triangle" west of Burrard Street; the completion of the construction of Phase I of Pacific Centre, the Royal Centre, and Project 200. These developments are putting stresses on the established core. II. LAND USE STUDY AND ANALYSIS Delimiting the Central Business D i s t r i c t Emphasis has been placed on gathering primary data because of the lack of reliable secondary information. Some of the results of the study are presented in this chapter, the remainder including sources of information, methods of data collection, limitations and descriptive s t a t i s t i c s are outlined in Appendix A. Various theories have been advanced as to the proper techniques to be applied in determining the actual boundaries of the CBD.^ Crite r i a such as changes in property values, changes in the intensity of land use, and changes in the type The "Golden Triangle" is the name given to that area of land bounded by Georgia-Cardero-Hastings-Burrard Streets. •^For an interesting discussion see "Delimiting the CBD" written by Raymond E. Murphy and J. E. Vance, in Readings In Urban Geography, Mayer and Kohn (the University of Chicago Press, 1959) pp. 418-446. 16 of land use, are often applied. The geographic area (Figure II) of the universe under study greatly affects the quantitative description of land use patterns. For example, vacant land s t a t i s t i c s would be greatly affected i f the boundaries of the CBD moved close to the very core of Downtown Vancouver. As this i s not a study to be used for planning purposes, although most of the information contained in this chapter would be useful for such purposes, the researcher has chosen those boundaries that appear on the following page. The dotted area 18 i s that area for which a complete set of data has been gathered; the slanted lines outline the area in which only s t a t i s t i c s on building uses have been gathered. The information obtained from the area within the slanted lines i s necessary to provide a meaningful comparison of a building use investory compiled by L. Smith and Co. in 19 1964. This is the only set of sta t i s t i c s pertaining to building use prior to the building boom in 1964. 18 For complete set of data gathered see Appendix A. 19 Larry Smith and Co. : A Report on The Economic Analysis  of Downtown Vancouver; Prepared for Planning Dep't, City of Vanco uver. FIGURE II. STUDY AREA 18 20 General Land Use The study area encompasses a total of 266 acres of land dedicated to the following uses: DISTRICT 21 DISTRICT TOTAL Lot 541 Lot 185 Acres No. of Acres No. of Acres  Land Developed For Land 100 31 131 Develop- Vacant ment Land 31 8 39 STREETS AND LANES 77 19 96 TOTAL 208 58 266 The significant proportion of land dedicated to streets i s indicative of the need for transportation and accessability within the CBD. Typically the CBD is the centre or focus point of the t r a f f i c system. Without proper access to the CBD and mobility within the CBD i t could not be the centre of cc>ijj_ierce for a metropolitan area. Approximately 50% of the downtown land i s considered to be "developed land". This includes a l l land used for purposes recognized as urban in character whether developed to an open use such as parks and play grounds or to a site use such as residential, industrial or commercial. The improvements on the land do not necessarily have to represent highest and best use. 20 For additional, more specific land use inventory see Appendix A, Table XIX. The inventory was compiled by the researcher during the land use study. 21 The d i s t r i c t lot is apart of the legal description of property in the CBD. The d i s t r i c t lot i s comprised of several c i t y blocks which in turn are comprised of lots owned by the public.The study area includes two d i s t r i c t lots. D i s t r i c t lot 541 includes land east of Burrard and D.L.185 includes land west of Burrard Street. 19 Vacant land has played an important role in the growth of Vancouver's core and is given special attention later i n the chapter. It i s sufficient to mention that although vacant land comprises only 147o of total land i n the study area, i t is 327. of the land c l a s s i f i e d as "available for development" indicating that there is s t i l l a significant portion of land in the study area that i s not yet developed and that i t could play an important role in thegrowth of Vancouver's CBD. One index used to measure the extent of development in the CBD is called the floor space index and is examined below. 22 Floor Space Index The floor space index is calculated by dividing total building floor area by the land area associated with the buildings, plus any vacant land within the geographical area under study. The index i s a tool used by city planners to determine, compare, and thus control accommodation within a given area. The index is also a useful tool for developers and investors because i t enables them to determine areas where the land is used most intensively hence most valuable. It also 23 identifies those areas which are relatively underdeveloped. 22 See Table I for sources of information, results including a block by block calculation. 23 Underdeveloped areas for purposes of this study i s a site that although improved with a physical structure does not represent the highest use. 20 There are only four blocks within the study area that have a floor space index greater than 7. (See Table I) Three of these blocks w i l l have this index because of projects under construction and soon to be completed. Only the block containing Eaton's Depart-ment Store, bounded by Hastings, Richards, Cordova and Seymour Streets, has had a building on i t for some time. The area bounded by Burrard, Hastings, Seymour and Pender Streets, which up to 1964 just before the current building boom in office space was considered to be the ccnnmercial centre of the CBD has indices that vary from 2-5, much below the now permitted Floor Area Ratio of 12 times site coverage. It is also well below the indices of those blocks which have projects under construction and coloured black on Figure III. It would appear that there are areas in the CBD that w i l l be much more intensively developed than those in the established core. (Hastings, Granville, Pender/ Granville Area). The area fronting on the west side of Burrard Street i s developing more intensively than the established core along Pender. Street and Hastings Street, between Seymour Street and Burrard Street. The most intensive development is along the major t r a f f i c arteries of Granville, Burrard, Georgia and Hastings Streets. These developments appear to have formed a h a l f - c i r c l e around a relatively underdeveloped area comprised of six c i t y blocks bounded by Pender, Granville, Georgia and Burrard Streets. This relatively underdeveloped area would appear to be in line for redevelopment to provide continuity for these high density fringe areas. MM • • • Bf\ . • Q Q B B Q Q [_3[ IC ^ • • • r z ) \ 7f\ \ LEGEND Ratio: o - 1.777771 1 - 2 2 - 3 3 - 4 m i l g DDQSQDIQQ' 1GI0I0D0B • • n q o o n n COfc ™ E Z H Z 3 Q D 0 E piacfiD 'DDBQDD0.J HSaODBODDlf ^DQQODDOr -•DOBflO FIGURE III. DENSITY RATIOS 4 - 5EZZ2Z2 5 - 6 22 Assessed Land Value Another useful index of development is provided by assessed values of real property. Assessed values are the legal valuation of real property for purposes of taxation. They are used as indices to measure the relative significance of particular locations within the CBD. There are some reservations on behalf of urban land economists for using this index to describe land use within the Central Business 24 D i s t r i c t , however assessed values are the only suitable data source on property values that cover a l l the areas in the CBD and are f a i r l y consistent so they are used as a yardstick. 25 Indices using assessed values are calculated i n two ways: (2) on a block by block basis to determine the relative value of the various c i t y blocks, and (b) on a street basis to determine the relative value of the streets within each cit y block. The results of the study illustrated in Table I and Figure IV indicate that the intersection of Georgia and Granville Streets has the highest assessed value per square foot of land area. Properties fronting on Georgia Street west of Seymour Street as far as Bute Street have assessed values in the two highest categories ranging from $31 - $51 per square foot of land area. However, properties on Georgia Street only three blocks east of Georgia-Granville Street intersection are only l/6th 24 Mayer and Kohn, Readings In Urban Geography, (The University of Chicago Press, 1959) pp.418-446. 25 For sources of information and more detailed discussion and results see Appendix A. 23 T A B L E I FLOOR SPACE INDEX Block D i s t r i c t Land B u i l d i n g Floor Assessed Assessed No. Lot No. s q / f t Area Space Land Value Bui l d i n g Value s q / f t Index per s q / f t per s q / f t land Area 8 541 34, 800 149, 886 4.3 $ 5.00 $ 14.00 9 541 17 905 80, 699 4.3 5.00 14.00 10 541 37, 850 154, 968 14.1 5.00 14.00 11 541 96 554 340, 636 3.5 8.30 14.00 12 541 61 920 299 750 4.8 11.80 17.00 13 541 53 300 382 300 7.7 27.80 54.00 14 541 54 720 314, 046 5.7 25.90 65.00 15 541 62 400 240 000 3.8 27.90 134.00 16 541 117 292 158, 582 1.4 25.50 27.10 20 541 60 060 247, 403 4.1 31.50 121.00 21 541 61 920 187, 836 3. 31.30 43.00 22 541 66 990 380, 897 5.7 28.30 127.00 23 541 49 920 169 310 3.4 31.00 51.00 24 541 74 270 337, 352 4.5 11.50 25.00 25 541 62 060 122 959 2.0 9.80 13.00 26 541 61 800 122 338 2.0 6.80 8.00 30 541 109 200 319 663 2.9 24.00 31 541 109 560 361 775 3.3 28.60 45.00 32 541 106 701 207 796 1.9 17.50 43.00 33 541 108 680 321 133 3.0 23.60 12.00 34 541 109 200 265 891 3.4 10.80 50.00 35 541 103 ,200 171 475 1.7 8.80 10.00 36 541 109 680 48 450 .8 5.30 14.00 37 541 118 ,300 232 958 2.0 4.30 5.00 38 541 135 ,000 226 444 1.7 4.30 34.00 39 541 40 541 118 ,000 198 ,663 1.7 26.40 24.00 41 541 124 ,600 300 532 2.4 26.50 27.00 42 541 118 ,300 300 ,168 2.5 37.40 11.00 43 541 119 ,100 670 ,301 5.6 40.90 64.00 44 541 120 ,000 497 316 4.1 12.70 26.00 45 541 114 ,000 155 ,210 1.4 8.50 10.00 46 541 120 ,000 809 ,500 6.3 7.20 113.00 47 541 130 ,000 205 ,260 1.6 4.80 57.00 48 541 130 ,000 51 ,493 .4 4.00 4.00 50 541 118 ,500 873 ,743 7.3 30.00 176.00 51 541 120 ,000 100 ,000 .8 29.00 12.00 52 541 120 ,000 33.00 53 541 121 ,000 388 ,163 3.2 36.00 60.00 54 541 119 ,800 627 ,653 5.2 10.50 65.00 24 TABLE I (continued) Block D i s t r i c t Land Bu i l d i n g Floor Assessed Assessed No. Lot No. sq/f t Area Space Land Value B u i l d i n g Value sq/f t Index per s q / f t per s q / f t Land Area 55 541 120,000 81,600 .7 $ 6.10 $ 3.00 56 541 129,000 55,438 .5 5.00 2.00 57 541 120,000 3,900 .03 5.00 1.00 58 541 123,000 51,113 .4 5.00 2.00 60 541 116,280 89,743 7.7 21.60 10.00 61 541 114,000 6,000 .05 19.70 .30 62 541 114,000 223,910 2. 19,70 11.00 63 541 114,000 218,371 1.9 17.40 19.00 64 541 114,960 121,785 1.0 8.00 10.00 65 541 126,210 107,767 9.0 4.50 42.00 66 541 114,500 21,609 .2 4.00 1.00 67 541 117,000 83,000 .7 3.70 2.00 68 541 117,000 285,510 2.4 3.40 13.00 70 541 82,515 434,307 5.2 11.60 9.00 71 541 115,450 4.605 .04 9.70 10.00 72 541 114,000 173,497 1.5 9.70 10.00 73 541 114,000 136,486 1.2 7.40 8.00 74 541 114,000 41,854 .4 4.70 3.00 75 541 114,000 162,817 1.4 3.90 5.00 1 185 121,000 730,800 6.4 2 185 151,279 1128,722 7.50 20.00 150.00 3 185 152,990 448,615 3.2 16.00 90.00 4 185 134,937 201,733 1.5 25.20 40.00 5 185 77,154 80,000 1.0 21.00 3.00 15 185 162,695 80,747 .5 20.00 14.00 16 185 189,918 618,669 3.2 11.60 22.00 17 185 174,240 233,180 1.3 17.90 31.00 18 185 246,808 221,801 .9 15.80 12.00 19 185 82,661 48,599 .6 12.4 5.00 Source: S t a t i s t i c s compiled by researcher D C J _ | L_J I I L_J 3C 1 D D B H O D E 3 E DOBOODOr OCT Aw C •QHflfl DIP ?26 " $30 — FIGURE IV. ASSESSED LAND VALUE $31 - $41 — SQUARE FOOT OF LAND $42 and over g g B g B SPACE 26 the assessed value of the i n t e r s e c t i o n . G r a n v i l l e Street, on block on ei t h e r side of i t s i n t e r s e c t i o n with Georgia Street has assessed values ranging from $41 - $50 per square foot of land area. Assessed values on G r a n v i l l e Street remain higher north of i t s Georgia Street i n t e r s e c t i o n than south of the i n t e r s e c t i o n . Presumably this i s due to the concen-t r a t i o n of o f f i c e space north of Georgia Street. The i n t e r s e c t i o n s of G r a n v i l l e and Hastings Streets; Burrard and Hastings Streets; and Burrard and Georgia Streets, have assessed values ranging from $31-$41 per square foot of land area and appear to be of a secondary nature as f a r as assessed values are concerned. Properties on Hastings Street east of G r a n v i l l e Street i n t e r s e c t i o n r e t a i n t h e i r value much bet t e r than those on Georgia Street. This i s i n d i c a t i v e of the importance of the r e t a i l area on Hastings Street between G r a n v i l l e Street and Cambie Street. Assessed values of the properties on the north side of Hastings Street between G r a n v i l l e and Hastings Street are 257. to 507. higher than the properties on the south side. I t appears that the north side of Hastings Street i s f l o u r i s h i n g due to the pedestrian t r a f f i c generated by Eaton's Department Store. I t i s the contention of the researcher that t h i s area w i l l s u f f e r g r e a t l y when Eaton's relocates to i t s new premises at the Georgia-Granville Streets i n t e r s e c t i o n . The above a n a l y s i s i n d i c a t e s that G r a n v i l l e Street i s the primary north-south a x i s , and Burrard Street i s of secondary importance as f a r as assessed values i s concerned. Georgia Street i s the primary east-west axis 27 and Hastings Street i s of secondary importance. Land r e t a i n s a higher value west of G r a n v i l l e Street axis than east; and north of Georgia Street better than south. This r e f l e c t s the popularity of th i s area f o r new o f f i c e space. I l l STANDING STOCK The s t a t i s t i c s and tables presented i n this s e c t i o n provide a qua n t i t a t i v e and q u a l i t a t i v e d e s c r i p t i o n of the standing stock w i t h i n the study area to determine the nature and ownership of the b u i l d i n g s w i t h i n the study area. B u i l d i n g Condition Table IV indicates that 167. of the b u i l d i n g area provided by the standing stock i s i n very good c o n d i t i o n and provides a l l the amenities of modern o f f i c e space. 337° of the b u i l d i n g area i s i n good con d i t i o n , 397, i n f a i r c o ndition, and 187. i n poor co n d i t i o n . Buildings l i s t e d as very good have j u s t r e c e n t l y been constructed and provide a l l the amenities of new b u i l d i n g s . These amenities include a i r c o n d itioning, f u l l elevator s e r v i c e , and good l i g h t i n g . Buildings classed as good, provide a l l these amenities but have not been newly constructed. They have probably been b u i l t i n the l a s t ten years. Buildings classed as f a i r are those 10-20 years of age. Most of the buil d i n g s have an a i r exchange system (not a i r conditioned) and have reasonably good l i g h t i n g and elevators. The f a i r category has the broadest guidelines of a l l , hence w i l l probably contain the greatest number of b u i l d i n g s . This category may range from those b u i l d i n g s needing only a 'coat of paint' to those r e q u i r i n g more extensive r e h a b i l i t a t i o n . Buildings classed as poor 28 are those bu i l d i n g s of 30 years of age, and have no a i r exchange system. Any elevator they do have i s very slow and has to be manually c o n t r o l l e d . Buildings earmarked as very poor are those which d e f i n i t e l y show s t r u c t u r a l wear and tear and could be razed. A v i s u a l survey of the buildings i n the study area reveals that those blocks located east of G r a n v i l l e Street have the l a r g e s t proportion of b u i l d i n g space, i n poor and very poor condition. The area between G r a n v i l l e S t r e e t and Burrard Street has the l a r g e s t proportion of b u i l d i n g s i n f a i r c ondition. Tables II and I I I compares the b u i l d i n g c o n d i t i o n i n D.L. 185 and D.L. 541. Approximately 407. of the b u i l d i n g area i n D.L. 185 i s considered to be i n very good condition, while only 87. of the space i n D.L. 541 i s i n very good con d i t i o n . This supports the observation that most of the b e t t e r o f f i c e space i s i n the study area, west of G r a n v i l l e Street and that t h i s has been the area where most of the new developments have secured. The above a n a l y s i s i n d i c a t e s the huge inventory of b u i l d i n g space w i t h i n the CBD and i l l u s t r a t e s the r e l a t i v e d u r a b i l i t y and i n f l e x i -b i l i t y of r e a l estate. Modern business prefers prestige o f f i c e space; the kind which cannot be o f f e r e d by b u i l d i n g s i n f a i r condition, although a t one time most of the b u i l d i n g s i n the category ( f a i r ) were considered the ultimate i n o f f i c e space. P h y s i c a l c h a r a c t e r i s t i c s of b u i l d i n g s d i c t a t e that they supply a r e l a t i v e l y i n f l e x i b l e type of service that can only s a t i s f y changing needs by extensive renovations. This i n a b i l i t y of older b u i l d i n g s to s a t i s f y these q u a n t i t a t i v e and q u a l i t a t i v e demands r e s u l t s i n the construction of new b u i l d i n g s , and vacancies i n the older I i C D LZZI rrrrt • QBQ TjaaaiziDDa latziaizisadn 3sar-. D D Dn s . i o s A n . Dil l •OQDDOOr \ \ \ FIGURE Note- Tte above land use portrays LEGEND genera/area of land use.The areas — H i g h Density Commercial 12 x that/emain uncoloured are areas Medium Density Commercial 5 x i n / i c h these uses overlap or where _ R e t a i l g L q the/ce i s no predominate use. —Warehouse 3 Formation — P u b l i c R e s i d e n t i a l TABLE II BUILDING CONDITION VERSUS BUILDING OWNERSHIP DISTRICT LOT 541 Condition Very Good sq/ft Good sq f t Fair sq/ft Poor sq/ft Very Poor sq/ft Total Owner sq/ft Owner Resident Non Resident Trust Federal Gov't Provincial Gov't Municipal Gov 11 185,600 (49%) 1,348,000 (49%) 3,189,000 15% 27% 383,000 425,000 40% 205,000 28% 2,401,000 11,000 1% 433,000 61% 575,000 57% 810,000 75% 1,988,000 300,000 29% 436,000 43% 240,000 21% 1,114,000 312,000 191,000 17% 42,400 6% 4,000 4% 90,000 4,300 130,000 13% 40,000 5% 6,126,600 5,088,300 1,057,000 720,400 1,011,000 1,054,000 TOTAL CONDITION 1,198,600 (9%) 5,578,000 (42%) 6,153,000 (47%) 1,863,400 (1.4%)264,300 (.2%) 13,057,300 Notes: (1) Description of building condition classification was described previously. Source: Land use study compiled by researcher. TABLE III BUILDING CONDITION VERSUS BUILDING OWNERSHIP DISTRICT LOT 185 Condition Very Good sq/ft Good sq/ft Fair sq/ft Poor sq/ft Very Poor sq/ft Total Owner sq/ft Owner Resident Non Resident Trust Co Federal Gov't Provincial Gov't Municipal Gov't -733,922 (41%) 563,500 (32%) 334,000 (19%) 38% 50% 23% 830,000 (50%) 334,000 (20%) 463,000 (27%) 45% 30% 31% 85,500 (13%) 571,000 (86%) 8% 38% 21,000 (100%) 1% 188,000 ( 86%) 10% 30,000 (24%) 2% 106,000 (7%) (60%) 55,000 (3%) ( 3%) 7,000 (1%) ( 4%) 28,500 (1%) 100% 124,000 ( 32%) 125,000 (32%) 84,000 (22%) 6% 12% 6% 49,000 (14%) (33%) 1,765,922 (100%) 1,652,500 (100%) 663,500 (100%) 21,000 (100%) 218,000 (100%) 382,000 (100%) TOTAL CONDITION 1,896,992 (40%) 1,108,000 (24%)1,482,000 (32%) 167,500 (2.5%)28,500 (.5%) 4,682,922 Source: Compiled by researcher from statistics gathered in a f i e l d survey. Co 32 b u i l d i n g s . The service provided by the older b u i l d i n g i s obsolete i n that i t doesn't represent the highest and best use f o r the s i t e . However, i t does provide o f f i c e space f o r those who only can a f f o r d lower rents. Rather than replace this b u i l d i n g with a newer b u i l d i n g a t t h i s l o c a t i o n a developer w i l l chose a vacant s i t e that provides approximately the same l o c a t i o n a l a t t r i b u t e s . This vacant s i t e w i l l cost l e s s than the s i t e with the b u i l d i n g , thus the d u r a b i l i t y of the e x i s t i n g standing stock does a f f e c t the d i r e c t i o n of development w i t h i n the CBD. Most of the new development has occurred i n the area west of Burrard Street where, as w i l l be shown l a t e r , vacant land and larger land holdings has made assembly possible. Figures X and XI of Appendix A compare vacancy s t a t i s t i c s f o r the various types of b u i l d i n g s . The buil d i n g s that are unable to provide a l l the amenities have the highest vacancy r a t e . Assessed Value of B u i l d i n g Per Square Foot of Land Area Another measure of the q u a l i t y of the standing stock i s the assessed value of bu i l d i n g s per square f o o t of land area. This index i s c a l c u l a t e d by d i v i d i n g the sum of the assessed value of the improve-ments by the land area occupied by the b u i l d i n g . The value of the b u i l d i n g i s spread over the land area used by these improvements and provides a measure of the i n t e n s i t y of land use and ind i c a t e s the q u a l i t y of improvements. The r e s u l t s are displayed i n tabular form on Table I. Many of the highest i n d i c e s f a l l i n the same geographic l o c a t i o n of the CBD as the higher indices of land value and land use. 33 The higher indices are located between Burrard Street and Georgia St r e e t p a r t i c u l a r l y along Georgia Street, Burrard Street and Hastings Street. However, there are some areas where the indices do not c o i n c i d e ; f o r example, the c o n t r o v e r s i a l Block 42 has a use index of 2.5 x the land area, and average land assessment of $37.40 per square foot t h i r d highest i n the study area. The index measuring the b u i l d i n g q u a l i t y i s only $11 per square foot of land area, f a r below that of neighbouring properties. One can i d e n t i f y p o t e n t i a l areas for redevelop-ment by comparing them to Block 42. I t has a high land use p o t e n t i a l i . e . i t i s zoned f o r 12 times s i t e coverage. This would i n d i c a t e a need for the redevelopment which i s c u r r e n t l y under way. This i s f u r t h e r substantiated by the f a c t that assessed land value i s the t h i r d highest i n the study area i n d i c a t i n g a good r e l a t i v e l o c a t i o n i n the CBD and the value of improvements i s very low i n d i c a t i n g e i t h e r underdevelopment or poor q u a l i t y . By examining other s i t e s i n this manner the researcher can i d e n t i f y redevelopment areas that o f f e r the l e a s t resistance to future growth. IV OWNERSHIP OF LAND AND BUILDINGS The paper has stated that the system of ownership and the property owners themselves a f f e c t the d i r e c t i o n of growth i n the CBD. The f i r s t part of t h i s s e c t i o n examines the c o n t r o l of b u i l d i n g s and compares types of owners with the s i z e and c o n d i t i o n of b u i l d i n g s i n the Central Business D i s t r i c t . The second part of t h i s section studies the c o n t r o l of land i n the study area and draws some general conclusions 34 concerning land ownership and i t s affect on the growth in the CBD. Ownership characteristics of vacant land are examined under a special section devoted to the study of vacant land. Lack of previous ownership studies in the CBD means i t is impossible to find a base year from which one can determine ownership trends. This analysis gives a static description of ownership characteristics. Building Ownership There are approximately 19,730,000 square feet of building space within the boundaries of the study area. Tables II, III and IV indicates that 407. of the total building area i s controlled by owners considered as residents, 347. by non-residents, 97. by trust companies and 177. by the three levels of government. Owners classed as residents and non-residents control the bulk of the building space in residents control 187.-297. and non- residents control approximately 407. of the building space. This indicates that non residents have been most active in investing and developing i n Vancouver CBD. If the study area is broken into D.L. 185 and D.L. 541 the non residents have been most active i n D.L. 185. In the study area buildings classed as in good condition, i.e. buildings at least five years old, the ownership ratio i s 507. resident and 307. non-resident. This proportion changes when considering very good space, i.e. space put on the market i n the last five years, so that 307. of the new space is controlled by residents and 447, by non-TABLE IV BUILDING CONDITION VERSUS BUILDING OWNERSHIP TOTAL FOR: D.L. 185 & 541 Condition Very Good sq/ft Good sq/ft Fair sq/ft Poor Very Poor sq/ft sq/ft Total Own* sq/ft Owner 919,522 (19%) 1,911,500 (22%) 3,523,000 (40%) 1,420,000 (17%) 118,500 ( 2%) 7,892,522 Resident 297. 28% 47% 70% 40% 40% Non 1,213,000 (10%) 2,451,000 (44%) 2,451,000 (40%) 317,500 ( 6%) 4,300 6,720,800 Resident 39% 39% 33% 15% 2% 34% Trust 425,000 (25%) 96,500 ( 5%) 871,000 (50%) 198,000 (12%) 130,000 ( 8%) 1,720,500 Co. 14% 1.5% 11% 10% 44% 9% Federal 226,000 (30%) 433,000 (58%) 42,400 ( 6%) 40,000 ( 6%) 741,400 Gov't 8% 6.5% 2% 16% 4% Provincial 188,000 (15%) 575,000 (46%) 466,000 (39%) 1,229,000 Gov't 6% 9% 6% 6% Municipal 124,000 ( 9%) 935,000 (65%) 324,000 (23%) 53,000 ( 3%) 1,436,000 4% 16% 4% 3% 7% TOTAL CONDITION 3,095,522 (16%) 6,686,000 (33%) 7,635,000 (39%) 2,030,900 ( 2%) 292,800 ( 2%) 19,740,222 Source: Compiled by writer from statistics gathered in f i e l d survey. Co 36 residents. This means that the a c t i v i t y of non-residents has more than doubled i n the past f i v e years. Absentee landowners c o n t r o l only 157, of the b u i l d i n g space considered i n poor c o n d i t i o n and 27, of the t o t a l space i n very poor condition. Local residents on the other hand c o n t r o l 707=, of the poor space and 407, of the very poor space. Trust companies c o n t r o l the l a r g e s t proportion of b u i l d i n g space c l a s s i f i e d as very poor space approximately 447, of the very poor space. Most of the space c o n t r o l l e d by t r u s t companies i s i n trusts that the companies administer on behalf of t h e i r c l i e n t s . One can conclude that up to s i x years ago residents of Vancouver had the c a p i t a l and expertise to i n v e s t i n b u i l d i n g i n the CBD. However, i n the past s i x years non-residents have been i n c r e a s i n g l y a c t i v e i n downtown development. This i s h i g h l i g h t e d by two major developments 26 under construction i n the CBD. Both these projects are of such magnitude and complexity that they are out of the range of most l o c a l developers. Land Ownership Lack of base year s t a t i s t i c s with which one can set up a su i t a b l e time comparison of previous year's s t a t i s t i c s to determine trends i n ownership r e s u l t s i n a s t a t i c d e s c r i p t i o n of land ownership. Table XXII, Appendix A, dis t i n g u i s h e s between the owner-user and the owner-investor. Within the t o t a l study area the owner-user 26 The two developments r e f e r r e d to are P a c i f i c Centre and Royal Centre. 37 c o n t r o l s 437, of the land i n the study area, the owner-investor controls 577, of the land. The type of ownership v a r i e s s u b s t a n t i a l l y between D.L. 541 and D.L. 185. In D.L. 541 the owner-investor owns 557, of the land while i n D.L. 185 he c o n t r o l s 707, of the land. Table XXII indicates that the degree of investor ownership increases as one moves from the eastern boundary of the study area to the western boundary. A large proportion of the owner-user c o n t r o l l e d land i s owned by the Federal P r o v i n c i a l and Municipal Governments; large department stores, some r e t a i l s p e c i a l t y shops, warehouses and l i g h t i n d u s t r i a l b u i l d i n g s . Many of the large f i n a n c i a l i n s t i t u t i o n s with o f f i c e s on Hastings Street own t h e i r o f f i c e premises. Some of these i n s t i t u t i o n s such as Royal Trust Co. and the Royal Bank of Canada, and the Bank of Montreal have moved or are planning to move their r e g i o n a l headquarters to Burrard S t r e e t and assume the r o l e of tenants. D i s t r i c t Lot 185, which contains many new o f f i c e b u i l d i n g s , i s l a r g e l y investor oriented. Thus i t would appear that with increasing i n t e n s i t y of land use the greater the emphasis on investor ownership. Investor's have the expertise and f i n a n c i a l resources to carry on t h i s type of development. This variance i n ownership c h a r a c t e r i s t i c s might w e l l be the reason f o r the recent extensive development w i t h i n D.L. 185 and not i n D.L. 541. Owner users are t y p i c a l l y more r e l u c t a n t to s e l l because i t means a d i s r u p t i o n of t h e i r business. Block 42, which has been expropriated by the c i t y because the developer was unable to assemble the land, contained 18 land owners comprised of 9 owner-investors and 9 owner-users. The owner-users were r e l u c t a n t to s e l l 38 and d i s r u p t t h e i r business. The investors on the other hand could s e l l and have l i t t l e trouble i n r e l o c a t i n g t h e i r c a p i t a l . Table XXII, Appendix A, ind i c a t e s that the ownership classes of residents and non-residents c o n t r o l approximately the same proportion of land i n both sections of the study areas. Residents c o n t r o l 467<>-507o while non resident c o n t r o l 217,-287. of the land area. Non-residents c o n t r o l a greater proportion of b u i l d i n g area than land area, i n d i c a t i n g that the non-residents generally develop the land more i n t e n s i v e l y . The i m p l i c a t i o n of the above findings i s that investors, p a r t i c u l a r l y non-resident investors, have been a c t i v e i n development i n Downtown Vancouver. Consequently any land owned by these people could be considered "more a v a i l a b l e " f o r development than the land c o n t r o l l e d by owner-users. V VACANT LAND Vancouver's Central Business D i s t r i c t has expanded v e r t i c a l l y by developing vacant or underdeveloped areas wi t h i n the CBD and l a t e r a l l y by expanding i t s boundaries outward. In both cases vacant land plays an important r o l e i n determining the d i r e c t i o n of c i t y growth because i t o f f e r s the course of l e a s t resistance i n terms of land assembly costs and owners involved. In t h i s chapter vacant land i s examined on the basis of: 1) amount of vacant land and i t s l o c a t i o n , 2) ownership of vacant land, and 3) length of vacancy to determine i t s a f f e c t on c i t y growth. 39 Amount of Vacant Land and I t s Location Most of the vacant land (approximately 900,000 square fee t ) w i t h i n the study area i s located southeast of the Burrard-Georgia i n t e r s e c t i o n . I t s primary use i s to provide parking f o r 2,400 auto-mobiles. 407o of the vacant land located south and east of the Burrard-Georgia i n t e r s e c t i o n i s owned by the three l e v e l s of government. Their property i s advantageously located and each par c e l i s a t l e a s t 120,000 square f e e t (one c i t y block) i n s i z e . The P r o v i n c i a l Government has announced plans f o r construction of an o f f i c e b u i l d i n g on i t s s i t e (bounded by Robson, Smithe, Hornby and Howe S t r e e t s ) . Both projects are of the magnitude that they could w e l l be the c a t a l y s t f o r f u r t h e r development i n the immediate areas. Anyone who wishes to develop a commercial b u i l d i n g n a t u r a l l y looks f o r vacant land that i s s u i t a b l y located, and i s of s u i t a b l e s i z e (at l e a s t 15,000 square f e e t ) . Discussions with major developers and r e a l t o r s i n d i c a t e that development i n the study area i s most l i k e l y to happen west of Seymour St r e e t . There i s approximately 640,000 square f e e t of vacant land that could be considered a v a i l a b l e f o r development because i t i s a s u i t a b l e s i z e , or because the neighbouring properties are underdeveloped f o r t h e i r l o c a t i o n and could be combined with the vacant land to provide a s i t e s u i t a b l e f o r development. Approximately 216,215 square f e e t (34%) of t h i s land i s located i n D.L. 541 i n the area west of Seymour Street, and east of Burrard S t r e e t . However, 131,200 square f e e t of this vacant land i s owned by the P r o v i n c i a l Government. The remaining 85,000 square f e e t i s owned by the private sector and approximately 35,000 square f e e t has been earmarked by a 40 developer f o r development. This leaves only 50,000 square f e e t of vacant land a v a i l a b l e f o r development i n the study area bounded by Seymour and Burrard Streets. Ownership of Vacant Land Within D.L. 185 there are approximately 381,185 square f e e t that i s of s u i t a b l e s i z e f o r development or could be assembled i n t o an area to provide s u f f i c i e n t s i z e f o r development. Approximately one-third of t h i s land i s owned by developers who have already announced plans for development. This leaves only 43,000 square f e e t of vacant land with access to a major t r a f f i c a r t e r y , i . e . Burrard, Georgia, Hastings and Pender Streets. The remainder of the vacant land i s dispersed throughout D.L. 185 i n areas that permit medium density development. None of the vacant land lends i t s e l f to a development of the nature found i n the Burrard, Thurlow, Pender and Georgia area (Bentall Centre, Royal Centre, and MacMillan Bloedel B u i l d i n g ) . Vacant land has been instrumental i n determining the d i r e c t i o n of development i n the study area. The recent b u i l d i n g boom of o f f i c e space i n D.L. 185, was the r e s u l t of large amounts of vacant land being a v a i l a b l e f or development. However, i n other parts of the study area, vacant land has had a detrimental e f f e c t on the development of the CBD. The i n a c t i v i t y on the vacant c i t y block owned by the P r o v i n c i a l Government has discouraged development of neighbouring properties because of i n d e c i s i o n as to the type of development to go on the block. Owners of vacant land have generally been accused of impeding development of an area f o r t h e i r own speculative purposes, 41 a t the expense of other c i t i z e n s . I t i s not i n the scope of this paper to determine i f these land owners are "good c i t i z e n s " , merely that vacant land and the c o n t r o l of such, has played an important r o l e i n development and warrants fur t h e r study as to i t s c o n t r o l and use. The d i v e r s i t y of ownership makes i t impossible to personally interview the owners to determine t h e i r goals or reasons f o r holding vacant land. However, c e r t a i n ownership c h a r a c t e r i s t i c s that are e a s i l y i d e n t i f i a b l e are h i g h l i g h t e d below. 31.57» of the vacant land i n the study area i s c o n t r o l l e d by 27 owner users. These people t y p i c a l l y hold vacant land adjacent to t h e i r place of business f o r future expansion, putting the land to use for parking during the i n t e r i m period. This i s most noticeable i n the study area south and east of the Georgia-Seymour Street i n t e r s e c t i o n where wholesaling firms, l i g h t i n d u s t r i a l firms, an automobile dealer-ship, and an automobile r e n t a l f i r m are located. C i t y planners have suggested that this type of a c t i v i t y i s contrary to the nature of the CBD, yet i t appears that most of the businessmen have long range plans, as they are putting up new l i g h t i n d u s t r i a l b u i l d i n g s and buying vacant land when i t comes on the market. In the past ten years i n d u s t r i a l and wholesale users have purchased over 75,000 square f e e t of vacant land that has been adjacent to t h e i r place of business. They are using the land f o r expansion. This would seem contrary to the general phenomena experienced i n other major urban areas where wholesalers and See Table V. TABLE V VACANT LAND TYPE OF OWNER OWNER-TYPE DISTRICT LOT 541 DISTRICT LOT 185 s q / f t s q / f t Resident 778,319 55% 123,121 34% Non Resident 206,883 14% 117,190 30% Trust Co 76,014 6% 152,685 36% Municipal Gov't 122,366 8% P r o v i n c i a l Gov't 131,225 8% Federal Gov't 120,000 8% 1,423,582 396,025 TYPE OF OWNER OWNER-TYPE DISTRICT LOT 541 DISTRICT LOT 185 Owne r-1nve s tor 288,062 68% 271,285 Owner User 1,135,520 32% 124,740 31.! 1,423,582 s q / f t 396,025 s q / f t LENGTH OF OWNERSHIP No. of Years DISTRICT LOT 541 DISTRICT LOT 185 0 - 5 years 562,195 40% 109,789 36% 6 - 1 0 years 187,080 13% 126,720 17% 11 - 20 years 205,227 15% 53,546 14% Over 20 years 459,080 32% 105,929 33% 1,423,582 s q / f t 396,025 s q / f t LENGTH LAND IS VACANT No. of Years DISTRICT LOT 541 DISTRICT LOT 185 0 - 5 years 249,320 18% 54,483 17% 6 - 1 0 years 103,120 7% 74,102 10% Over 10 years 1,071,141 75% 266,440 73% 1,423,582 s q / f t 396,025 s q / f t Note: S t a t i s t i c s Based on Data from F i e l d Survey. 43 and light industrialists are moving to the less congested suburbs where land i s cheaper and they house their operations in a single storey building. Most of the vacant land i s owned by investors presumably for purposes of speculation or development. Investors own 68.57. of the vacant land i n the study area, consisting of 867. of the vacant land in D.L. 185 and 687. of the land in D.L. 541. Table V indicates that the three levels of government control approximately 257. of vacant land in the study area and have owned i t for at least five years. In the private sector, residents of Vancouver control 557. of the vacant land, non residents control 127. of the vacant land and trust companies either through direct ownership or administration of trusts, etc. control 87. of the vacant land. With this control by the various levels of government and by Vancouver residents inaction on vacant land cannot be pinned on non-residents of Vancouver. The old  charge of absentee ownership in the private sector does not apply in  this case. Table V indicates that length of ownership of vacant land reaches two extremes. Approximately 367. of the total vacant land in the study area in the past five years and 337. of the vacant land has been i n the hands of the same people for over 20 years. On one hand there is a large turnover of vacant land indicating speculative act i v i t y . However, there i s also a significant portion of land that has been under the same ownership for the past 20 years. This could be land owned by owner-users who have been at that location for this 44 period of time; or i t could be that owners of vacant land, having acquired the land so long ago, invested only a small cash outlay, and f e e l that the revenue they receive from parking l o t s i s adequate for t h e i r cash investment, and more than o f f s e t s c a r r y i n g costs such as taxes and i n t e r e s t cost. Length of Vacancy Another i n d i c a t i o n that vacant land i s able to c a r r y i t s e l f i s the number of demolitions i n the CBD. In the period 1960-1964, 107. of the vacant land was i n e f f e c t created by the demolition of structures on the s i t e ; i n the period 1965-1969 this f i g u r e increased to 177.. Most of t h i s land has been put to use providing surface parking, i n favour of a s i t e use by a b u i l d i n g . Most of the b u i l d i n g s demolished were very o l d , frame rooming houses that had once been s i n g l e family dwellings. I t can be concluded that vacant land has played an important r o l e i n determining the d i r e c t i o n of development i n the c i t y ' s core. Well located vacant land o f f e r s l e s s resistance i n terms of cost and speed of development compared to underdeveloped land. The large quantity of vacant land immediately west of Burrard Street has been a c o n t r i b u t i n g f a c t o r to encouraging growth i n this area, so much so that i t could be argued that the f i n a n c i a l centre of Vancouver i s moving from the Hastings, Pender, Seymour, G r a n v i l l e area to the Burrard, Georgia, and Hastings area. I t can also be generally concluded that the number of w e l l located vacant s i t e s are i n short supply and that developers are going to have to look to razing underimproved s i t e s w i t h i n the core. 45 VI LAND ASSEMBLY D i f f i c u l t y i n land assembly due to the sheer number of land owners i n the CBD produces resistance to growth and thus a f f e c t s the d i r e c t i o n of development wi t h i n the CBD. One study i n Chicago found that f o r a developer to acquire 28 some 264 twenty-five foot l o t s he would have to contact 151 owners. The number of l o t s per person averaged 1.7 i n 4 of the 10 blocks studied. In the remaining blocks the average f e l l between 1.2 and 1.4 l o t s per owners. Twelve of the owners held 46 of the 164 l o t s however the holdings of these twelve were scattered throughout the s i t e and among the 115 l o t s held s i n g l y that the commission concluded that assembly of a group of contiguous l o t s would be impossible. In Vancouver fragmented ownership on the downtown area i s pos s i b l e because of the l e g a l system of land ownership. The standard u n i t of ownership commonly r e f e r r e d to as "Lot" i n D.L. 541 i s 25' x 120' = 3000 square f e e t . In D.L. 185 the system was changed so that the " l o t " s i z e i s 66' x 120' = 7920 square f e e t almost three times the area of D.L. 541. Developers with expertise i n the f i e l d of o f f i c e b u i l d i n g development u s u a l l y required a s i t e of at l e a s t 15,000 square fe e t to b u i l d a structure large enough to absorb the overhead. The assembly of a s i t e t h i s s i z e could w e l l involve negotations with 28 G.H. Beckman, D e c e n t r a l i z a t i o n and Blighted Vacant Land, Taken from "Readings In Urban Geography" by Mayer and Kohn, pp. 505-601. anywhere from 2-5 landowners, i n D.L. 541 and most l i k e l y two landowners i n D.L. 185. Experienced negotiators f e e l that when the number of land owners r i s e s above three, e s p e c i a l l y f o r a s i t e i n the 15,000 square f e e t range, chances of assembling the land a t 29 the r i g h t p r i c e are remote. This problem of land assembly has been h i g h l i g h t e d by the controversy associated with the expropriation of land i n Block 42 ( a c i f i c Centre). I t was obvious that t h i s block was ready f o r redevelopment yet p r i v a t e e n t e r p r i s e was unable to assemble the block because some of the owners refused to s e l l . Table VI i l l u s t r a t e s the changing c h a r a c t e r i s t i c s of land assemblies i n the study area. A land assembly i s considered to have taken place when contiguous parcels of land are amalgamated under common ownership. Land transactions have been analyzed over three time periods; the f i r s t i s a ten-year time period from 1950-1959. The other two are f i v e year periods from 1960-1964 and 1965-1969. The number of land assemblies i n downtown Vancouver has increased from an average of 1.5 per year f o r the 1949-1959 period, to 5 per year i n the 1960-1964 period, to 6 per year i n the 1965-1969 period. Recent developments i n the CBD i n d i c a t e that the trend i s towards a s i t e much larger than 15,000 square f e e t . Three recent developments have a s i t e area of: a) Columbia Centre, 150,000 square f e e t . , b) The B e n t a l l Centre, 67,000 square f e e t , c) P a c i f i c Centre, Stage 1, 140,000 square f e e t . TABLE VI LAND ASSEMBLY 1949 - 1969 Year No. of Assemblies No. of Owners No. of Titles No. Lots of Square Feet No. of Owners No. Lo ts of No. of Titles No. of Square Feet Dist r i c t Lot District Lot District Lot District Lot District Lot District Lot Dis t r i c t Lot Dis t r i c t Lot District Lot 541 185 541 185 541 185 541 185 541 185 541 185 541 185 541 185 541 185 1949 1959 8 7 36 22 46 22 82 24 237000 113004 4.5 2.7 10.2 3.4 5.8 3.1 17250 16143 1960 1964 18 6 58 19 83 19 108 19 409000 122508 3.2 3.2 6 3 4.6 3.2 23066 20416 1965 1969 15 14 46 39 63 43 73 53 240240 3. 2.8 4.8 3.8 4.2 3 16016 31600 Source: Assessment Roles in Vancouver City Hall for the Years 1959, 1964 and 1969 48 Table VI indicates that D.L. 185 i s a more desi r a b l e area for land assembly. I t has a smaller number of owners and a larger area of land per assembly. The number of assemblies has more than doubled i n D.L. 185 i n the l a s t f i v e year period, while the number of assemblies i n D.L. 541 has decreased s l i g h t l y . This r e l a t i v e ease or success of land assembly i n D.L. 185 as compared to D.L. 541 i s c e r t a i n . / a c o n t r i b u t i n g f a c t o r to the extensive development i n D.L. 185. The sheer magnitude of the study area means that i t i s i m p o s s i l l e to personally interview a l l the landowners involved i n land assemblies. Table VII q u a l i f i e s the land assembly process by c l a s s i f y i n g what happens to the land a f t e r i t has been assembled. Twenty per cent of the land assembled has buildings on i t , the other 807, of the land i s vacant. Fifty-two percent of the vacant land now has been developed and the other 487, i s s t i l l vacant. This means that 417, of the t o t a l land area assembled i n the study area s t i l l i s vacant. The land has been assembled for purposes of speculation or f o r l a t e r use while being used f o r parking i n the interim. There i s a t o t a l of 596,759 square f e e t of land assembled s t i l l vacant, of which 177. has been vacant for a t l e a s t 19 years, 567. vacant between 5-10 years, and 177. i n the l a s t f i v e years. In the l a s t f i v e years there have been 29 transactions i n v o l v i n g 683,036 square f e e t of assembled land area. The bulk of the land involved has been assembled by owners who c o n t r o l land immediately adjacent to the land. These owners accounted for 697. of the transactions and 457, of the land area involved i n these assemblies. TABLE VII USE OF ASSEMBLED LAND BY DISTRICT LOTS 1949 - 1969 *Source: Primary research by the wri t e r YEAR LAND ALREADY. ' IMPROVED VACANT LAND LATER DEVELOPED STILL VACANT Dis t r i c t Lot 541 (sq.ft.) D i s t r i c t Lot 185 (sq. f t . ) Dis t r i c t Lot 541 (sq. f t . ) Dis t r i c t Lot 185 (sq. ft.) District Lot 541 (sq. f t . Di s t r i c t ) 185 (sq. Lot ft. ) 1949-1959 30,000 22,080 16,800 33,792 39,000 62,983 1960-1964 136,200 34,848 24,000 17,424 24,900 87,120 1965-1969 69,000 33,320 88,080 333,980 83,166 75,496 TOTAL 235,200 ° 90,248 280,080 385,196 151,160 225,599 USE OF ASSEMBLED LAND TOTAL STUDY AREA 1949-1969 YEAR LAND ALREADY IMPROVED VACANT LAND - LATER DEVELOPED STILL VACANT TOTAL Square Foot 7. of Period Total Square Foot 57. of Period Total Square Foot ' % of Total Total Square ] 1949 1959 52,080 147. 201,792 607. 101,983 267. 355,855 1960 1964 171,048 317. 41,424 77. 336,120 627. 548,592 1965 19 102,320 157. 422,060 617. 158,656 247. 683,046 325,448 207. 627,994 397. 596,759 417. 1,587,493 50 The following s p e c i f i c cases q u a l i f y the land assembly and land development process f u r t h e r . A major portion of the land f o r the B e n t a l l Centre was assembled i n the period 1949-1959 for a service s t a t i o n . The balance of the land was purchased i n the period 1964-1969 bringing the t o t a l s i t e area up to 67,000 square f e e t . The owners of the B e n t a l l Centre recently purchased 33,000 square f e e t of land adjacent to t h e i r property and are developing i t . The s i t e f or another large development, the MacMillan Bloedel B u i l d i n g , was assembled i n the period 1964-1969. The land area involved i s 54,000 square f e e t and had previously been used for a service s t a t i o n and surface parking. I t involved assembling the i n t e r e s t s of 4 owners. The Columbia Centre Development, comprised of the Baxter and The Board of Trade B u i l d i n g involves 150,000 square f e e t of s i t e area. This land assembly involved 6 owners. Again there were few improvements on the land, only a restaurant, with the remainder of the s i t e being used f o r parking. The Royal Centre (now under construction) on the north-west corner of Burrard Street, and Georgia Street, comprises 105,000 square f e e t of land area owned by four i n t e r e s t s . The land had previously been used f o r a service s t a t i o n , a body shop, car park and a restaurant. VII SUMMARY AND CONCLUSIONS An examination of c h a r a c t e r i s t i c s such as b u i l d i n g c o n d i t i o n and f l o o r space index has shown that most new development has occured i n 51 D.L. 185. I t indic a t e d that the e x i s t i n g s p a t i a l structure and b u i l d i n g inventory i n D.L. 541 i s a constraining framework f o r change and that even though the older established f i n a n c i a l core was i n D.L. 541 developers prefer to develop areas i n D.L. 185. Developments i n D.L. 185 have displaced minor uses. Most of the land was previously used f o r service stations or surface parking and offe r e d less resistance to developers who have to assemble the land. The study has examined land assemblies i n both d i s t r i c t l o t s and found that more land has been assembled and that i t i s e a s i e r to assemble land i n D i s t r i c t Lot 185. Results have indicated that the system of ownership and ownership c h a r a c t e r i s t i c s i n D i s t r i c t Lot 185 are such that they o f f e r less r e s i s t a n c e than those i n D i s t r i c t Lot 541. In general this study concludes that development i n Downtown Vancouver appears to be taking the course of l e a s t r e s i s t a n c e . Assuming that the l o c a t i o n i s s a t i s f a c t o r y f o r the intended use then the a v a i l a b i l i t y of land the ease of assembly and the ease of d i s p l a c i n g present uses are instrumental f a c t o r s i n determining the d i r e c t i o n of growth of the c i t y . o As a c o r o l l a r y to the above conclusion the following are trends that are apparent as f a r as future development i s concerned. The develop-ment has occurred i n D i s t r i c t Lot 185 because of the large amount of vacant land i n the area and ease of assembly of th i s land. An examination of the study area shows that opportunities f o r w e l l located s i t e s f o r large scale development composed of two or more o f f i c e towers are i n short supply. There are some s i t e s on Georgia and Burrard Streets that lend 52 themselves to smaller developments but none of them are large enough to be considered s i t e s f o r super block developments such as the P a c i f i c Centre and Royal Centre. The r e l a t i v e ease with which land has been assembled f o r large developments i s a thing of the past as developers w i l l be forced to turn t h e i r a t t e n t i o n towards the established core and i t s underdeveloped land and a l l the problems associated with redevelopment. Having drawn some general conclusions as to the f a c t o r s a f f e c t i n g growth i n the CBD we turn to applying these f i n d i n g s to the study area to i d e n t i f y areas of p o t e n t i a l development and s e l e c t a s i t e where development i s most l i k e l y to occur. Once the s i t e i s selected the study c a r r i e s out an economic f e a s i b i l i t y a nalysis to determine i f a development could be done on the chosen s i t e . In this way we can chart the future course of CBD development. 53 CHAPTER IV AREAS OF POTENTIAL DEVELOPMENT I SITE QUALIFICATIONS This chapter uses the information i n the previous chapter to i d e n t i f y areas that could possibly be developed or redeveloped i n the future. By i d e n t i f y i n g these areas the study can then determine the d i r e c t i o n of growth i n the CBD. FigureVI i d e n t i f i e s these areas of p o t e n t i a l redevelopment. These s i t e s have been l i m i t e d to those with the following q u a l i f i c a t i o n s . a) a maximum permitted development density of twelve times coverage b) land uses designated f o r the development are those which are t y p i c a l f o r the downtown core such as o f f i c e space, r e t a i l space, h o t e l space and parking c) l o c a t i o n s w i t h i n the CBD which are compatible with the above uses: that i s those s i t e s which s u i t a b l y market the above uses. The following yardsticks measure the development p o t e n t i a l of the s i t e : a) Assessed value of improvement per square foot of land area. This index i s used to measure the i n t e n s i t y of development as w e l l as the q u a l i t y of improvements. The measure of the q u a l i t y and i n t e n s i t y 54 of development i s r e l a t e d to the index number f o r Block 42. The assessed value of improvements per square foot of land area i n Block 42 i s $17 per square foot. b) Assessed value of land. This index i s used to measure the r e l a t i v e s i g n i f i c a n c e of the s i t e l o c a t i o n . c) Size and condition of the buildings on the s i t e . d) Present uses e) Actual i n t e n s i t y of land use. This index i s used to compare the i n t e n s i t y of use of the s i t e to f u l l y developed s i t e . f ) Ownership c h a r a c t e r i s t i c s . An a n a l y s i s of the number and type of owners to determine the a v a i l a b i l i t y and cost of the land to be assembled. The assembly of Block 42 was hampered because of owner-users; i . e . people who use t h e i r property f o r business purposes f e l t that s e l l i n g t h e i r property meant not only a readjustment of t h e i r investment p o r t f o l i o , but a r e l o c a t i o n of business as w e l l . Thus the type of ownership must be included i n the land assembly a n a l y s i s . r-I I SITE SELECTION Using these c r i t e r i a two general areas of redevelopment have been i d e n t i f i e d and i l l u s t r a t e d on the map. Block 32 i n Redevelopment Area # 1 appears to be the best p o s s i b i l i t y f o r redevelopment with indices that i n d i c a t e a low land use s i t u a t i o n and a greater number of owner investors. Unfortunately an interview with most of the owners involved indicated that assembly would be d i f f i c u l t and expensive. The ! • • • • • • • • [ ) • • • • • • , • [ a A M c L A V r. o. 1 • ^ ! . n 5 M K S O H J D LZIEX3 D • Q E~~J • • • • • • • • Q K U O N V n v • • • E D O PJIDDDDD DDIODD LOT "DlDDDGO DnHMD'DDDLv OHtitiuD •DDBQDDl I DDBODDl • DO Oi l DOT DOflflO FIGURE VI ^ P o t e n t i a l Redeve^ent. Areas — " Recently Developed or Under Construction RE DEVE LOPMb Spot Development Areas -Source: Compiled by Researcher from f i e l d survey data 56 TABLE VIII BLOCK 42 - PACIFIC CENTRE REDEVELOPMENT BLOCK NUMBER 42 Assessed Land value Sq. F t . Land Area Assessed Value of Improvements Per Sq. F t . Land Area Density Ratio Number of Land Owner Land Area - Sq. F t . Land Area/Owner $37.4/sq. f t $17/sq. f t . land area 2.5 Bui l d i n g Area (sq. f t . ) 181,168 sq. f t . B u i l d i n g Condition ( s q . f t . ) Good 85,000 sq. f t . F a i r 96,168 sq. f t . Poor Vacant Space B u i l d i n g Area 30,000 sq. f t . Vacancy Rate 15% B u i l d i n g Ownership (area) - Owner - User 108,200 sq. f t . - Owner - Investor 72,932 sq. f t . Land Ownership (area) - Owner User 54,000 sq. f t . - Owner Investor 66,000 sq. f t . Length of Ownership (sq. f t . ) - 0 - 5 years 22,500 sq. f t . 6 - 1 0 years 30,000 sq. f t . 11 - 20 years 12,000 sq. f t . 20 years 55,500 sq. f t . 18 120,000 sq. f t . 6,600 sq. f t . Source: Compiled by researcher from f i e l d survey. 57 TABLE IX REDEVELOPMENT AREA # 1 Block Number 40 41 31 32 Assessed Land value Per Sq. F t . Land Area 26.4/sq.ft. 26.5/sq.ft. 28.6/sq.ft. 27.5/sq.ft. Assessed Value of Improvements per Sq. F t . Land Area 24/sq.ft. 27/sq.ft. 43/sq.ft. 12/sq.ft. Density Ratio 2 - 3 2 - 3 3 - 4 2 - 3 Improvements Bu i l d i n g Area Sq/ft 298,663 s q / f t 301,169 s q / f t 361,775 s q / f t 207,796 s q / f t B u i l d i n g Good Condition ( s q . f t . ) F a i r Poor 53,425 s q / f t 191,238 s q / f t 54,000 s q / f t 58,369 205,000 47,800 s q / f t s q / f t s q / f t 181,500 111,700 68,575 s q / f t s q / f t s q / f t 42,296 48,000 117,500 s q / f t s q / f t s q / f t Vacant-Building Area Space - Vacancy Rate 3,000 s q / f t 1% 1,200 s q / f t 36,000 10% s q / f t 11,000 5% s q / f t Buildings Ownership-owner use Bu i l d i n g Area 75,951 s q / f t 221,920 s q / f t 73,252 s q / f t 4,352 s q / f t - Owner Investor Land Ownership-owner use 40,000 s q / f t 50,000 s q / f t 15,840 s q / f t 23,500 s q / f t Owner Investor 80,000 s q / f t 70,000 s q / f t 93,720 s q / f t 85,700 s q / f t Length of Ownership s q . f t . 0 - 5 years 28,440 s q / f t 51,000 s q / f t 42,600 s q / f t 24,000 s q / f t 6 - 10 years 17,280 s q / f t 14,040 s q / f t 6,000 s q / f t 11 - 20 years 21,000 s q / f t 30,000 s q / f t 10,800 s q / f t 9,000 s q / f t 7 - 20 years 51,380 s q / f t 39,000 s q / f t 43,120 s q / f t 69,480 s q / f t Number of Land Owners 11 8 18 20 Land Area - Sq. F t . 120,000 s q / f t 120,000 s q / f t 139,200 s q / f t 139,200 s q / f t Land Area - Owner 10,900 s q / f t 15,000 s q / f t 7,740 s q / f t 6,960 s q / f t Source: Compiled by the researcher from f i e l d survey TABLE X REDEVELOPMENT AREA # 2 Block Number 60 61 62 63 Assessed Land Value Per Sq. Ft. Land Area $21.6/sq.ft. $19.7/sq.ft. $19.7/sq.ft. $17.4/sq.ft. Assessed Value of Improvements Sq. Ft. Land Area $10/sq. , f t . -- $10/sq. f t . $19/sq. f t . Density Ratio 0 - 1 0 - 1 1 - 2 1 - 2 Building Area (sq. ft.) 89,743 sq.ft. 6,000 sq. f t . 133,911 sq. f t . 218,371 sq. f t . Buildings Condition (sq.ft.) good 20,000 sq.ft. 23,394 sq. f t . 79,500 sq. f t . f a i r 69,760 sq.ft. 6,000 sq. f t . 68,947 sq. f t . 24,600 sq. f t . poor 57,709 sq. f t . 114,271 sq. f t . very poor 3,860 sq. f t . Vacant - Buildings Area • 15,000 10,500 Space - Vacancy Rate 107. 57. Building - Owner Use Area 4,960 sq.ft. 6,000 sq. f t . 45,000 sq. f t . 5,500 sq. f t . Ownership - Owner investor 84,783 sq.ft. 108,911 sq. f t . 202,871 sq. f t . Area Land - Owner-user land area 22,000 sq. f t . 114,000 sq. f t . 34,000 sq. f t . 30,000 sq. f t . Ownership - Owner investor area 92,000 sq. f t . 80,000 sq. f t . 84,000 sq. f t . Length of 0 - 5 years 48,000 sq. f t . 114,000 sq. f t . 30,000 sq. f t . 3,000 sq. f t . Ownership 6-10 years 30,000 sq. f t . 6,000 sq. f t . 11 - 20 years 6,000 sq. f t . 6,000 sq. f t . 9,000 sq-. f t . 20 years 30,000 sq. f t . 72,000 sq. f t . 102,000 sq. f t . Number of Land Owners 12 1 11 11 Land Area (sq. ft.) 114,000 sq. f t . 114,000 sq. f t . 114,000 sq. f t . 114,000 sq. f t . Land Area (owner) 8,750 sq. f t . 114,000 sq. f t . 10,350 sq. f t . 10,350 sq. f t . Source: Compiled by researcher from f i e l d survey. 59 other blocks within Redevelopment Area # 1 appear to have s u b s t a n t i a l improvements, i . e . a high index of "assessed value of improvements". A l l the blocks except Block 62, i n Redevelopment Area # 3 can be systematically eliminated because of the d i f i c u l t i n assembly due to ownership problems. An interview with the owners i n Block 62 ind i c a t e d a w i l l i n g n e s s to s e l l . Block 62 i s c o n t r o l l e d by 11 owners, 4 of which are owner-users. This low number of owner-users i s a c o n t r i b u t i n g f a c t o r i n the success of the land assembly. The assessed land value fi g u r e s are based on opinions formed i n 1969 and don't t r u l y r e f l e c t the s i g n i f i c a n c e of Block 62's s t r a t e g i c l o c a t i o n with regard to the P a c i f i c Centre and the new P r o v i n c i a l Government b u i l d i n g . 60 CHAPTER V FEASIBILITY ANALYSIS FOR DEVELOPMENT OF BLOCK 62 Having established two areas f o r p o t e n t i a l development, and f o r reasons advanced i n the previous s e c t i o n having chosen a f u l l c i t y block i n one of these areas, t h i s paper w i l l evaluate the economics involved i n the redevelopment of the chosen s i t e . The property under consideration i s l e g a l l y described as Block 62, D i s t r i c t Lot 541, and i s bounded by G r a n v i l l e , Robson, Howe and Smithe Streets. This chapter commences with a summary of the economic base and population growth prospects of the metropolitan area. This information provides a basis f o r a market opportunity a n a l y s i s which i s compared to a study of the supply c h a r a c t e r i s t i c s i n c l u d i n g present and proposed developments. Once the market p o t e n t i a l f o r o f f i c e space i n Vancouver's CBD i s i d e n t i f i e d the paper then e s t a b l i s h e s a concept f o r the o v e r a l l development of a block. The chapter then constructs an economic model in c l u d i n g development costs, f i n a n c i n g , a n t i c i p a t i o n a n t i c i p a t e d revenue and expenses and a measurement of i t s p r o f i t a b i l i t y . I POPULATION GROWTH H i s t o r i c Trends According to population s t a t i s t i c s published by S t a t i s t i c s Canada, the Vancouver census metropolitan area increased by more than 607. 61 during the l a s t decade and one-half 1956-1971. This represents an average annual growth of 27,000 people per year over the past f i f t e e n 30 years. Migration i s the key f a c t o r i n B.C. population growth. For 20 years B.C. has had one of the highest growth rates but the lowest b i r t h . 31 r a t e . Population P r o j e c t i o n The population projections undertaken by the Greater Vancouver Regional D i s t r i c t have proven conservative. The 1971 a c t u a l "metro" area population i s 1,070,000 the estimated was 1,026,000 people. This c o r r e c t i o n has been ins e r t e d i n the table page, however, the projections f o r years following have been retained. Long term future population growth prospects are e x c e l l e n t . The annual rate of increase should approach 40,000 persons by 1986 i n response to a c o n t i n u a l l y expanding economic base. Of course, i n the long-term Vancouver w i l l doubtless master the d i f f i c u l t i e s imposed by l o c a l geography, p a r t i c u l a r l y with regards to the i n t e r n a l transportation system. 30 Lower "Metro" area population 1956——665,110 - 1971 1,070,000 31 Lower Mainland Regional Planning Board; Population Trends i n the Mainland 1921 - 1986: Summary Report A p r i l 1968. 62 I I BRITISH COLUMBIA'S ECONOMIC BASE B r i t i s h Columbia's economy l i k e Canada's i s based on the e x t r a c t i o n , processing and export of natural resource products. A r i c h resource base coupled with heavy c a p i t a l investment i n i t s development has kept B.C.'s standard of l i v i n g ahead of the n a t i o n a l average. The B r i t i s h Columbia economy i s susceptible to f l u c t u a t i o n s , peaking when demand i s high and troughing when f o r e i g n demand lags. Table XXXIV i n d i c a t e s that B.C's economy cannot be conceived of t o t a l l y i n terms of resource products however f o r a large and increasing proportion of the labour force i s engaged i n providing s e r v i c e s . The economy of the Lower Mainland i s markedly d i f f e r e n t from the nation or province. The Lower Mainland i s highly urbanized and comprises 547. of B.C.'s t o t a l population, B.C.'s f a b r i c a t i n g i n d u s t r i e s are c l u s t e r e d i n Greater Vancouver because of the concentrated markets, s p e c i a l i z e d labour force and transportation network. Growth of the Lower Mainland's service sector f a r surpasses 33 the p r o v i n c i a l rate under the extra impetus of a concentrated and growing r e g i o n a l markets. Growth of primary i n d u s t r i e s i n the B.C. i n t e r i o r a l s o stimulates expansion of t e c h n i c a l , management and d i s t r i b u t i o n services - p a r t i c u l a r l y i n the Lower Mainland. The Luwer Mainland employment s t r u c t i v e i s d i s t i n g u i s h e d by: For a more d e t a i l e d discuss see Appendix B See Tables XXXIV and XXXV 63 - r e l a t i v e l y low employment i n primary industry even i n those 34 e x t r a c t i v e i n d u s t r i e s i n which B.C. i s strong. - a high l e v e l of service industry employment r e l a t i v e to both B.C. and Canada. This means that the Lower Mainland and Vancouver i n p a r t i c u l a r i s the p r o v i n c i a l centre f o r the service i n d u s t r i e s . Those which are providing the bulk of new employment opportunities hence generating demand fo r o f f i c e space. The future of Metropolitan Vancouver i s very promising. I t s economic climate i s g r e a t l y a f f e c t e d by the demand f o r the provinces raw materials or semi-finished goods by other countries. Although t h i s demand i s subject to short run dampening periods, such as the one now experienced, i t i s expected that such demand w i l l increase over the long run period. Metropolitan Vancouver i s the major business centre of this resource r i c h province. The area f u l f i l l s a service r o l e providing a l l the services necessary f o r the Province's two most important primary i n d u s t r i e s ; f o r e s t r y and mining. Its importance as a port, e s p e c i a l l y with the development of Robert's Bank and the P a c i f i c Rim Trading Countries, has increased s i g n i f i c a n t l y . F i n a l l y the area's r o l e as a shopping, c u l t u r a l and t o u r i s t centre w i l l increase as the population and income of the area continues to expand. Changes i n the economic structure cannot be gauged s o l e l y by employment s h i f t s because of varying degrees of automation i n d i f f e r e n t i n d u s t r i e s . Thus p r o d u c t i v i t y of an industry may be increasing despite stable or d e c l i n i n g employment. The e x t r a c t i v e industry s t i l l play a very important r o l e i n our economy. 64 III OFFICE FUNCTIONS AND TRENDS Approximately 857o of t o t a l o f f i c e space wi t h i n the Vancouver Metropolitan area i s concentrated w i t h i n the downtown peninsula. Vancouver has not experienced the same degree of o f f i c e f u n c t i o n suburbanization as has been the case i n other major Canadian metro-p o l i t a n areas because of the absence of a perimeter suburban expressway system. Moreover, the shoreline geography which a f f e c t s downtown Vancouver and the transportation routes leading to i t , are thought to have considerably augmented the continued c e n t r a l i z a t i o n of o f f i c e functions and f a c i l i t i e s . A large proportion of Vancouver's CBD o f f i c e space i s occupied by natural resource industry corporate o f f i c e s often i n s i n g l e purpose structures. This concentration of corporate business o f f i c e s has given r i s e to growing vigorous f i n a n c i a l , l e g a l , and r e l a t e d business service functions. The f i n a n c i a l community i s anchored by the chartered banks and c e r t a i n t r u s t companies which operate r e g i o n a l headquarter o f f i c e s i n Vancouver. Both p r o v i n c i a l and f e d e r a l government agencies have tended to p a r t i c i p a t e i n the open market during the past decade. Although both l e v e l s of government have repeatedly proposed the development of new sin g l e purpose public sector o f f i c e space only the p r o v i n c i a l government has taken serious steps i n commissioning a r c h i t e c t s to design a b u i l d i n g . Current f i s c a l problems a t the f e d e r a l l e v e l would appear to preclude 65 t h i s p o s s i b i l i t y i n the near term future. Notwithstanding the p r o b a b i l i t y that single purpose government o f f i c e space w i l l doubtless be constructed during the next ten years a s u b s t a n t i a l portion of the generally less competitive o f f i c e space i n downtown Vancouver w i l l continue to be absorbed by government agencies. This increasing demand f o r government space i l l u s t r a t e s Vancouver's importance as r e g i o n a l centre and i n e f f e c t Vancouver i s exporting government s e r v i c e s . The representation of personal service o f f i c e tenants p a r t i c u l a r l y of the medical/dental type occupying downtown Vancouver o f f i c e space may be expected to decline considerably during the next decade. These personal service o f f i c e functions w i l l be the f i r s t to respond to increasing a t t r a c t i v e suburban locations i n the face of r i s i n g downtown o f f i c e l o c a t i o n costs and increasing f r c t i o n i n the transportation system. The expanding medical-dental f a c i l i t i e s on Broadway i n the area of the Vancouver General H o s p i t a l bears t h i s out, as w e l l as the popul a r i t y of suburban o f f i c e l o c a t i o n s f o r medical-dental o f f i c e b u i l d i n g s . Metropolitan Vancouver i s reaching a l e v e l of population and d i v e r s i t y which brings a marked increase i n general s e l f - s u f f i c i e n c y . In Vancouver's case, most of t h i s s e l f - s u f f i c i e n c y i s r e l a t e d to a high population growth rate r e s u l t i n g from rapid migration to the area.The downtown core seems to generate i t s own growth out of r i s i n g population and i n t e r n a l s e r v i c e s . I t w i l l nevertheless continue to be b a s i c a l l y dependent on commercial and i n d u s t r i a l a c t i v i t i e s outside the area and i n many cases remote from the area. 66 Mass production (secondary industry) of consumer durable goods in Vancouver is not li k e l y to become competitive with the vast production and marketing systems of the world, where the large markets exist. Downtown Vancouver nevertheless has the power to become a very important and attractive concentration of service functsion (tertiary industry) for the Pacific Northwest and the community of Pacific Rim nations. Historic Office Space Supply Since World War II almost 5 million square feet of space has 35 been constructed in the Vancouver CBD. It is significant that two years, 1958 and 1969 account for more than 507. of the space. Two styles of office space supply have occurred in Vancouver during the past 15 years. The most recent surge of building a c t i v i t y since 1966 followed 5 years of relatively inconsequential construction, at which time only 440,000 square feet of office space entered the market. The c y c l i c a l nature of new office supply trends in Vancouver i s typical of most North American business centres. Recognizing the relatively stable economic conditions which have prevailed during the past 15 years, three factors are thought to be primarily responsible for such c y c l i c a l development action. The term " c o m p r e s s i b i l i t y " has been applied to the c o n d i t i o n i n t y p i c a l o f f i c e usage wherein, under conditions of business growth without a v a i l a b i l i t y a l t e r n a t i v e s , expanding o f f i c e functions can frequently be performed i n 707. or less of the space required f o r optimum e f f i c i e n c y of operation. S i g n i f i c a n t "compression" apparently developed i n the o l d G r a n v i l l e , Hastings f i n a n c i a l area of downtown Vancouver during 1960's. TABLE XI EXHIBIT 22 CBD OFFICE SPACE 1950-1970 Map Code Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1950 - 1954 Harris B u i l d i n g National Trust Mercantile B u i l d i n g Canada Permanent Rayonier Imperial Bank B u i l d i n g 1955 - 1959 Hydro Bank of Nova Sc o t i a B.C. C h a r i t i e s IPEC Cominco B.C. Telephone Pender and Main Burrard S h e l l O i l B u i l d i n g Esso B u i l d i n g Wawanesa 1960 - 1964 F i d e l i t y L i f e United Kingdom 1190 M e l v i l l e MARC B u i l d i n g I.B.M. B u i l d i n g Canada Trust Canadian Indemnity East A s i a t i c N e s b i t t Thomson Bank of Canada B u i l d i n g 1965 - 1970 1200 West Pender P h i l i p s B u i l d i n g Prescott B u i l d i n g M e l v i l l e B e n t a l l Centre # 1 Baxter B u i l d i n g Royal Gen'l Insurance Montreal Trust B e n t a l l Centre # 2 Mac Bio Square Feet 20,000 44,220 38,670 32,909 152,000 62,380 350,179 289,000 28,773 48,750 72,000 75,000 160,000 43,000 200,000 108,350 83,000 11,000 1,118,873 79,000 115,000 46,700 24,000 40,500 43,500 20,624 60,900 65,500 150,000 245,724 88,734 67,000 50,700 69,500 285,800 112,500 97,000 83,400 180,380 375,000 TABLE XI (continued Map Code Number Square Feet 21 Avord Building 150,000 22 I.M.P.C. 36,201 23 Board of Trade 286,000 24 Guinness Tower 260,000 25 887 Dunsmuir 60,000 26 Westcoast 170,000 27 Moore Building 60,000 28 1200 W Pender 85,739 2,517,954 Source: Field Survey FIGURE VII OFFICE BUILDING DEVELOPMENT IN THE PAST DECADE 70 TABLE XII VANCOUVER CBD MAJOR OFFICE DEVELOPMENTS MID-1969 TO MID-1989 Map Key „ , „ Possible Approximate Estimated , ,\ Development Name _ - ^. n r i \ , 1 _ u u • n • -(red) Completion Rentable Probability Area 1. Pacific Centre Bl. 52 1971- 1972 470,000 1007. 2. 3. Pacific Centre B l . 42 I Royal Centre 1974-1975-1972-1975 1976 1973 600,000 600,000 460,000 907. 907. 1007. 4. Project 200-Canada Square 1972- 1973 350,000 957. 5. Brit i s h Columbia Government Block 61 1974-1976 750,000 ( 3 ) 957. 6. Federal Government 1974- 1976 400,000 ( 4 ) 257. 7. Project 200 Various Proposed Office Buildings 1976- 1985 1,600,000(5) 107. 8. Masonic Building 1972- •1973 140,000 107. 9. Bentall Centre III 1972- •1973 500,000 1007. 10. Granville - Pender 1972- 1973 150,000 757. 11. Burrard-Georgia 1975- 1976 225,000 507. 12. Birks Building 1979 600,000 257. 1. Estimated completion/occupancy based on talking with people in the industry. 2. Estimates done by researcher concerning probable v a l i d i t y of announced schedules. 3. Block 61 project estimated at 1 million sq. f t . GLA but office capacity unknown, so the researcher has assumed 750,000 sq/ft for office space. 4. Size of Federal Government project indefinite, current status: postponed indefinitely. 5. Project 200 status and schedule -.onsidered very indefinite. Source: compiled by researcher. 71 1. The a v a i l a b i l i t y of locations f o r prestige o f f i c e b u i l d i n g s and the a v a i l a b i l i t y of large blocks of prestige o f f i c e space i n new and e x i s t i n g b u i l d i n g s . 2. The success of i n d i v i d u a l o f f i c e b u i l d i n g developments wherein large blocks of space are a v a i l a b l e to the general market, i s dependent upon proper promotion and timing than upon as w e l l as apparent o f f i c e demand i n a given market. E f f e c t i v e promotion during a period of increasing market supply can frequently release l a t e n t demand f o r expansion which can be obscured by the f a c t o r o f " c o m p r e s s i b i l i t y " e s p e c i a l l y f o r large o f f i c e space users. 3. I t i s c h a r a c t e r i s t i c of r e a l estate development that there be long lead times between i n i t i a l conception of the idea and a c t u a l marketing of the space. However, even before a developer comits h i s time and money he needs some i n d i c a t i o n of market demand which u s u a l l y only comes a f t e r there i s a shortage of space. Competitive O f f i c e Development Proposals Table XII summarizes the a v a i l a b l e s p e c i f i c a t i o n s f o r future o f f i c e b u i l d i n g developments i n the Vancouver CBD. The red l o c a t i o n number on the map f a c i n g that page i l l u s t r a t e s the d i s t r i b u t i o n of these projects. A v a i l a b l e information concerning the development status of each i s summarized i n the following paragraphs. 1. P a c i f i c Centre - Toronto Dominion Bank B u i l d i n g The 30-storey o f f i c e tower completed on the northern portion of Block 52, i s known as the Toronto Dominion Bank B u i l d i n g , and contains approximately 470,000 square f e e t of gross leasable area (GLA). I t i s understood from r e l i a b l e sources that o f f i c e space i n the Toronto Dominion Bank 72 b u i l d i n g i s over 807. committed a t this time. 2. P a c i f i c Centre, Block 42 The northerly block of the P a c i f i c Centre development i s planned to include two o f f i c e towers with a t o t a l gross leasable area of approximately 1.2 m i l l i o n square f e e t . A major h o t e l i s a l s o contemplated on the middle portion of Block 42. The f i r s t tower on Block 42 i s c a l l e d the I.B.M. tower and i s estimated to be approximately 17 storeys containing 450,000 square f e e t . I.B.M. w i l l occupy approximately 100,000 square f e e t . The second o f f i c e tower i s the B.C. Telephone b u i l d i n g and w i l l contain approximately 750,000 square f e e t . B.C.Telephone Co. Ltd w i l l occupy 507. of th i s tower. The h o t e l i s contains 400 rooms and i s operated by Four Seasons Hotels Ltd. 3. Royal Centre The Royal Bank of Canada w i l l be the major tenant of the o f f i c e b u i l d i n g i n the Royal Centre development, located i n the northwest quadrant of the i n t e r s e c t i o n of Georgia and Burrard St r e e t s . The 35-storey o f f i c e tower component of the development, which w i l l a l s o include a major h o t e l , i s expected to be approximately 460,000 square f e e t GLA i n s i z e . Completion i s scheduled f o r l a t e 1972. 4. Canada Square The f i r s t major o f f i c e structure of many proposed f o r development i n the large P r o j e c t 200 complex i s a 28-storey 350,000 square foot GLA b u i l d i n g being constructed on an elevated deck above CPR trackage at the nothern end of G r a n v i l l e Street, adjacent to the Burrard I n l e t waterfront. A s i g n i f i c a n t proportion of th i s o f f i c e space w i l l be occupied by i t s major developing i n t e r e s t s - Grosvenor Laing (B.C.) Limited, The Canadian P a c i f i c Railway and CP A i r . 73 5. British Columbia Government - Block 61 Development plans for the British Columbia government-owned, Block 61, located immediately south-west of Pacific Centre's Block 52, are not yet finalized. It is generally understood that up to 1,000,000 square feet gross building area may be developed on Block 61. A sum of $25 million has been set aside by the British Columbia Government for this project, but recognizing the total capital expenditure necessary, together with other provincial expenditure p r i o r i t i e s , i t i s unlikely that construction w i l l commence before early 1973. 6. Federal Government The Federal Department of Public Works announced plans on August 22, 1967 for a large three-stage federal government complex on government land adjacent to the Hastings/Granville Street intersection. These buildings were to have been integrated into Project 200's planned Canada Square. 9 In the past two years these plans have been shelved and plans are now underway for a 1.5 million square foot development on the two c i t y blocks west bounded by Georgia, Beatty, Robson and Hamilton Streets. A recent conversation with a representative of the Federal Department of Public Works indicates that these plans are conceptual plans only and that i t w i l l be some time before this space comes on the market. For purposes of this analysis, i t is assumed that approximately 400,000 square feet of new government office space w i l l enter the Vancouver CBD office market some time during the period 1974 through 1976. 74 7. P r o j e c t 200 The balance of the proposed P r o j e c t 200 complex could include as much as 1.6 m i l l i o n square f e e t GLA of commercial o f f i c e space by ;985. In my opinion, recognizing the status of t h i s project to date and i t s p e r i p h e r a l l o c a t i o n r e l a t i v e to the emerging Vancouver CBD core area, i t i s u n l i k e l y that any s i g n i f i c a n t commercial o f f i c e space i n a d d i t i o n to Canada Square i t s e l f w i l l enter the market p r i o r to 1975. 8. Masonic B u i l d i n g A small 140,000 square foot GLA o f f i c e b u i l d i n g has been proposed for development on the northeast corner of Georgia Street and Seymour Street. I f i t proceeds according to the announced schedule, this b u i l d i n g would enter the market during 1973. I t i s understood that the project i s c u r r e n t l y postponed due to undisclosed d i f f i c u l t i e s . 9. B e n t a l l Centre I I I The e x c e l l e n t market acceptance of B e n t a l l Centre I and II which are Burrard Street oriented has created i n t e r e s t i n t h i s area and instrumental i n e s t a b l i s h i n g a new f i n a n c i a l centre. B e n t a l l Centre I I I approximately 500,000 square f e e t i s c u r r e n t l y under construction and completion i s expected i n e a r l y 1973. The Bank of Montreal and i t s lawyer w i l l occupy approximately 207. of the space. 10. Related Considerations B r i t i s h Columbia Hydro has outgrown the space a v a i l a b l e i n i t s new b u i l d i n g i n Block 70. Any development of Block 61 by the B r i t i s h Columbia Government i s expected to include a new B.C. Hydro B u i l d i n g as i t s major component. Therefore, i t i s possible that the e x i s t i n g B.C. Hydro B u i l d i n g which i s approximately 300,000 square f e e t 75 GLA i n size could be offered for sale. Recognizing i t s southern peripheral location and government oriented internal space design, however, this building could not be very competitive on the commercial office market. The most lik e l y buyer would be the Federal government. 11. Burrard-Georgia (Christ Church Cathedral) This building which w i l l occupy a prime site in Downtown Vancouver i s currently the centre of controversy. It w i l l be approximately 225,000 square feet and although plans for the building are i n advanced stages i t i s not lik e l y to come on the market u n t i l 1975 or 1976. 12. Birks Building Redevelopment. Announcements pertaining to this development indicate that i t w i l l be a 35 storey building on the corner of Georgia and Granville Streets. For purposes of this analysis i t i s assumed that this probability of i t coming on the market before 1980 is less than 507.. It is quite probable that additional office development proposals not yet announced at the time of this writing, w i l l be forth-coming. Furthermore, the estimated completion date for announced as well as unannounced developments w i l l most li k e l y continue to be affected by such considerations as negotiations with possible major tenants, senior financing conditions and further strikes affecting the construction industry. 76 Estimated O f f i c e Space Supply 1970-1980 Having accumulated a l l possible information on proposed o f f i c e development projects the developer must then assign a p r o b a b i l i t y f i g u r e on the project being completed. The p r o b a b i l i t y can only be based on the researcher's i n t u i t i o n having talked to people i n the industry, as w e l l as being f u l l y acquainted with the development process. In other words the researcher has to develop a f e e l f o r the various projects and base h i s estimates on h i s i n t u i t i o n . In t h i s case a l l the^ projects with an estimated p r o b a b i l i t y of 507. or bett e r w i l l be assumed to c o n s t i t u t e supply i n the next decade. The only exception i s the B.C. p r o v i n c i a l government - Block 61 which has been assessed a p r o b a b i l i t y of 337.. The researcher has assumed that approximately 337. of th i s o f f i c e space of 330,000 square f e e t w i l l come on stream during t h i s decade. As w e l l as estimating the gross amount of o f f i c e space coming on the market i n the next decade i t i s extremely important to have an i n d i c a t i o n of the timing of when t h i s space w i l l come on to the market. Any developer w i l l want h i s b u i l d i n g to come on the market when there i s some slack i n the supply. Table XIII indicates those projects most l i k e l y to come on stream and the timing of such pr o j e c t s . I t appears that to date there i s 3,185,000 square f e e t of o f f i c e space s l a t e d to come on stream i n the next ten years. I t a l s o appears that the bulk of these projects are scheduled to come on stream on the next s i x years. 77 TABLE XIII VANCOUVER C.B.D. ESTIMATED OFFICE SPACE SUPPLY 1969 - 1980 Map Key Development Name Possible Completion Area (sq/ft) (Red) 1. Pacific Centre -Block 52 1971-1972 470,000 2. Pacific Centre -Block 42 I 1974-1975 600,000 II 1975-1976 600,000 3. Royal Centre 1972-1973 460,000 4. Project 200-Canada Square 1972-1973 350,000 5. British Columbia Government Block 61 1974-1976 750,000 9. Bentall Centre III 1972-1973 500,000 10. Pender/Howe/and/or Granville 1972-1973 150,000 11. Burrard/Georgia 1975-1976 225,000 TABLE XIV VANCOUVER C.B. D. OFFICE SPACE SUPPLY PER CAPITA 1969 - 1980 Year Population Office Space Space per Capita 1970 1,024,200 9,120,000 8.9 1971 1,070,000 9,950,000 9.0 1972 1,098,000 10,315,000 9.4 1973 1,126,000 10,775,000 9.5 1974 1,154,000 10,775,000 9.3 1975 1,182,000 11,805,000 10.2 1976 1,209,000 12,950,000 10.7 1980 1,346,000 12,253,000 9.4 Source: Compiled by researcher through f i e l d survey 78 TABLE XV VANCOUVER CBD OFFICE SUPPLY TRENDS POST WAR PERIOD Time T o t a l CBD New O f f i c e Cumulative Percent Period O f f i c e Space Space New Space Vacant s q / f t s q / f t s q / f t 1951 - 1952 4,579,118 216,220 216,220 1953 - 1954 4,795,338 288,958 505,179 1955 - 1956 5,084,297 400,130 905,309 1957 - 1958 5,484,427 968,877 1,874,182 5.1% 1959 - 1960 6,453,300 200,000 2,074,182 2.47. 1961 - 1962 6,653,300 46,700 2,120,882 7.87. 1963 - 1964 6,700,000 405,024 2,525,906 0.27. 1965 - 1966 6,972,934 272,934 2,798,840 0.27. 1967 - 1968 7,551,634 578,700 3,377,540 0.57. 1969 9,125,124 1,573,580 4,951,120 2.07. 1.0% Source: Compiled by Researcher IV VANCOUVER CBD OFFICE MARKET DEMAND ANALYSIS This section analyzes both the quantitative and qualitative aspects of office space demand. I n i t i a l l y the chapter compares past office space supply and population growth and uses this information to establish trends of future office space demand. Once the overall demand picture has been established the remainder of the chapter w i l l qualify the demand in order to determine future office space users. Future Office Space Demand Growth i n market demand for new office f a c i l i t i e s in down-town Vancouver w i l l occur primarily as a function of expanding business community a c t i v i t i e s . The health of the downtown business community i s , of course, directly related to the size and rate of growth of the overall metropolitan area. Downtown office space u t i l i z a t i o n may be expressed as the ratio of office space (square foot GLA) per capita. At the present time, the Vancouver CBD contains 9 square feet of office space per capita in the Vancouver CMA. The corres-ponding s t a t i s t i c for metropolitan Toronto i s 12.1 square feet of office space per capita, 777. of which i s downtown space. Metropolitan Montreal has 12.5 square feet of office space per capita, 847. of which i s concentrated in the downtown area. The analysis of Vancouver's CBD supply and demand trends during the period to 1980 is illustrated by Figure VII. Statistics corresponding to the graph information are given on Tables XV, XVI and XVII. The following paragraphs present a point-by-point discussion of the analysis. 1. In the absence of adverse externalities, demand eventually approximates supply i n the long run but in the short term there are often wide descrepancies between demand and supply in the office market. The accompanying tables and graphs imply that Vancouver is no exception to the rule. In the period 1956 - 1957 over 1 million square feet of space was placed on the market while at the same time the vacancy rate of existing buildings increased from 0.657. to 2.67. i n 1957 and 5.17. in 1958. 2. Vacancy rates are good indicators of market conditions. Table 2 indicates that the vacancy rates have varied substantially over the last 16 years. Higher vacancy rates in 1961 and 1962 result from new office space on the market and the time period required to absorb this additional space. The vacancy rate has only risen above the acceptable rate in 1960 - 1961.36 3. Demand cannot truly manifest i t s e l f or be accurately measured unless there is office space on the market. The solid line on the graph is considered to be an estimate of market demand. The coordinates or shape and location of this demand curve have been established in the following manner: (a) By taking the time periods in which there has been new office space on the market, and where the vacancy rates are below or at the accepted minimum level previously discussed. A vacancy rate of 37. - 57. is considered acceptable or normal for office building ivestments - i.e. most developer's or investors assume a vacancy rate of 37. - 57. in their analysis of properties. 81 The two time periods are 1951 - 1952 and 1969 - 1970. During both these time periods new o f f i c e space has been introduced while the vacancy rate i s below 1%. This i n d i c a t e s that the market has manifested i t s e l f when supply has been a v a i l a b l e i n these two periods. A s t r a i g h t l i n e has been drawn through these two points and extended to show demand i n the next decade. Demand increases from 7.8 square f e e t per c a p i t a i n 1951 - 1952 to 8.9 square f e e t per ca p i t a i n 1969 - 1970; to a 9.6 37 square f e e t per c a p i t a i n 1980. This could probably be considered as the minimum curve because both dates represent very low vacancy r a t e s , approximately 17.. Thus as previously mentioned there may be l a t e n t demand that has not expressed i t s e l f because there i s no supply. Also the high demand curve r a t i o r e f l e c t s what some c a l l the "accordian e f f e c t . " This u s u a l l y evolves over long periods of time and r e s u l t s from the expansion of business a c t i v i t y w i t h i n a f i x e d supply of o f f i c e accommodation. The "accordiance a f f e c t " i s extremely d i f f i c u l t to measure or p r e d i c t , however i t has manifest i t s e l f i n 38 Vancouver CBD. 37 A d i s c u s s i o n with the Leasing Representative of P a c i f i c Centre confirms that the market absorption rate i n the CBD i s approximately 450,000 square f e e t per year which i n d i c a t e s a per c a p i t a demand of a t l e a s t 10 square f e e t / c a p i t a . 38 W. J. Rooeny; " E f f e c t of the Proposed Redevelopment of Block 42 and 52 Upon the Vancouver Central Business D i s t r i c t " . Unpublished Graduating Essay (Vancouver 1969) p. 39. 82 4. The high range "demand ratio" curve shown on the graph as a broken line rises at an increasing rate during the period to 1976. This ri s i n g projected demand trend i s a function of changing employment requirements i n an increasingly "white c o l l a r " society. Greater specialization in office oriented service functions w i l l mean expanding business communities i n major metropolitan centres. Thus, the Vancouver CBD business community is expected to grow at a faster rate than the metropolitan base. Demand for new office space w i l l _ncrease accordingly, as illustrated by the red demand ratio curve. 5. By 1976, due to ris i n g office costs related to the intensity of space u t i l i z a t i o n i n the Vancouver CBD, certain office functions w i l l increasingly favour suburban locations. Downtown office buildings w i l l be populated by tenants who require and can afford the cost of direct exposure to the downtown business community. The long-term trend toward partial suburbanization i s reflected on the graph by the declining rate of demand curve increase after 1976. 6. Due to the influx of more than 600,000 square feet of new office space during 1959, the Vancouver CBD office market was slig h t l y oversupplied during 1960 and 1961. Thus, the black supply ratio line exceeds the red demand ratio line on the graph during this period. 7. The subsequent period 1962 through 1966 saw very l i t t l e office construction and steady population growth, the result being the wide disparity between demand and supply shown on the graph by 1966. 83 8. The c y c l i c a l pattern of o f f i c e market supply r e f e r r e d to previously i n the study, i s i l l u s t r a t e d by the resurgence of construction a c t i v i t y during the period 1966 to 1969. The pronounced upward trend i n the supply r a t i o l i n e shown on the graph i s r e f l e c t e d i n the recent construction a c t i v i t y summarized previously. 9. During the period 1969 through mid 1971, the supply r a t i o trend i s p a r a l l e l , but has not approached, the r i s i n g demand r a t i o trend as shown on the graph. The p r i n c i p a l component r e f l e c t e d i n t h i s supply trend during the year 1970 and 1971 i s , of course, the Toronto Dominion Bank B u i l d i n g i n P a c i f i c Centre which i s already a f f e c t i n g the leasing market i n a n t i c i p a t i o n of i t s 1972 - 1973 market entry. Type of Demand Having determined the o v e r a l l demand f o r o f f i c e space by the use of general i n d i c e s , the next step i s to i d e n t i f y p o t e n t i a l users of t h i s new o f f i c e space. Table XXVI compares the b u i l d i n g use i n v e s t o r i e s i n the years 1964 and 1969, with a view to i l l u s t r a t i n g trends i n o f f i c e space use; while Table XXXII i n d i c a t e s trends i n the labour force i n B r i t i s h Columbia. In those years the Business Service industry has grown by 9537. i n terms of o f f i c e space occupied, the Finance Industry by 297., and the Transportation, U t i l i t i e s and Communication Industries by 127.. These service producing i n d u s t r i e s w i l l continue t h e i r growth rate. I t i s estimated that during the period 1965-1969 employment increased by 507. i n the insurance finance, and r e a l estate industry, 377. i n the transportation, communication and u t i l i t y industry. During the period 1966-1975 i t i s expected that the " s e r v i c e producing i n d u s t r i e s " w i l l grow by 407., while the "goods producing i n d u s t r i e s : w i l l grow by 267. 84 1 1 . 0 Legend: 11.5 . ^ ^ Maximum Demand Curve.... Minimum Demand Curve . i l - 2 Supply Curve l i . l . 11.0 . 10.9 . 10.8 10.7 7.4J 195I552 53 54555*657 585*960 616*2 6364 65666V ^86'9707f 72" 7"3 *7475767'7 78 79 '80 TABLE XVI VANCOUVER C.B.D. OFFICE SPACE DEMAND ANALYSIS TO 1980 1961 1966 1969 1971 1974 1976 1981 Vancouver, C.M.A. 790,259 892,384 991,400 1,070,000 1,145,000 1,209,000 1,346,000 Population Office Space per Capita Supply Ratio 8.2 7.8 8.9 9.0 9.1 10.7 9.6 Office Space 6,653,300 6,972,934 9,125,124 9,590,000 10,550,000 12,950,000 12,950,000 Supply sq/ft sq/ft sq/ft sq/ft sq/ft sq/ft sq/ft Office Space per Capital Demand Ratio 8.0 8.0 8.9 9.2 9.3 9.5 10 Otrice Space Demand 6,320,000 7,138,400 9,125,124 9,844,000 10,232,200 11,485,500 13,460,000 sq/ft sq/ft sq/ft sq/ft sq/ft sq/ft sq/ft Notes: (1) The Office space per capita demand ratio is based upon the maximum demand curve ratio which has an upward slope to reflect the changing nature of Vancouver and the fact that the city is becoming regional centre. Comparing office space supply and office space demand estimates and there is a short f a l l in office space supply of 1,545,000 by 1981. (This does not include the development proposed in this paper) TABLE XVII VANCOUVER CBD POST WAR - OFFICE SUPPLY TRENDS Time Period Total Office Total Per New Office Increase Per Cumulative Cumulative Per Space* Population Capita Space* of Population Capita New Space* Population Capita 1951 - 1952 4,579,118 582,648 7.8 216,220 41,200 5.3 216,220 412,000 5.3 1953 - 1954 4,795,338 623,848 7.7 288,954 41,200 7.0 505,129 82,400 6.1 1955 - 1956 5,084,247 665,048 7.6 400,130 41,200 9.8 905,309 123,600 7.3 1957 - 1958 5,484,427 715,048 7.7 968,873 50,000 19.4 1,874,182 173,600 10.8 1959 - 1960 6,453,300 675,048 8.4 200,000 50,000 4.0 2,074,182 223,600 9.3 1961 - 1962 6,653,300 810,000 8.2 46,700 45,000 1.0 2,120,882 168,600 7.9 1963 - 1964 6,700,000 850,000 7.9 405,024 40,000 10.1 2,525,906 308,600 8.2 1965 - 1966 6,972,934 890,000 7.8 272,934 64,000 4.3 2,798,840 372,600 7.5 1967 - 1968 7,551,634 960,000 7.9 578,700 64,000 9.0 3,377,540 436,600 2.7 1969 9,125,124 1,030,000 8.9 1,573,550 64,000 24.6 4,951,120 500,600 9.9 1960 - 1970 Population Increase 255,000 Space/capital 12.4 square foot Space Increase 3,156,300 square feet 1951 - 1959 Population Increase 198,600 oo Space Increase 1,389,709 Space/capital 7 square feet Source: Field Survey by Researcher 87 The ratio of employment i n the "service producing industries" to the "goods producing industries" has increase from 1.24 i n 1951 to 1.70 and 1.75 in 1961 and 1966 respectively. It i s projected to increase to 1.95 in 1975. For purposes of this analysis i t means that the "service producing industries" w i l l require more office space than the 40 Goods producing in the next decade. A study of tenancy characteristics of nine new office buildings indicate that the construction of deluxe office space within the core 41 area has a "city building" effect. It was found that 507. of the sample tenants had no previous Vancouver address. V MARKET CONCLUSIONS Assuming that the minimum demand curve is used as a basis for determining future demand, i.e. the straight line extended from the 1951 per capita figure to the 1969 per capita figure, demand in 1980 w i l l be 9.6 square feet of office space per capita. Applying this demand figure to population estimates gives a projected demand figure of 13,500,000 square feet of office space, approximately 600,000 square feet more than the estimated supply of 12,900,000 square feet of office space. Note for breakdown of forecasts of employment in specific industries. See Tables XXXVIII, and XLI 40 W. J. Rooney, "Effect of the Proposed Redevelopment of Blocks 42 and 52 upon Vancouver's Central Business D i s t r i c t ; " (unpublished Graduating Essay, The University of British Columbia, Vancouver, B.C. 1969), p. 39. 88 Table XVII compares the supply of office space over the last two decades 1950-1959 and 1960-1969. In the f i r s t decade the increase in office supply amounted to 7.4 square feet per capita and 12.5 square feet per capita in the 1960-1969 period. Applying the 12.5 square feet per capita figure to population increases in the period 1970-1980 the additional office space required is 4,100,000 square feet. This is approximately 900,000 square feet more than the supply. Both methods of projecting demand indicate that the supply of office space in the next ten years w i l l f a l l short of projected demand by at least 600,000 square feet of office space. Figure VII indicates that the proper timing for office space would be in the latter part of the decade, as up to 1978 supply w i l l meet the demand. Demand is expected to come primarily from "service producing industries" such as finance, insurance and real estate, transportation and public u t i l i t i e s . The "goods producing industries" such as logging and construction w i l l continue to grow and require office space. However, projections c a l l for employment 'of two people in the "service producing industries" for every one i n the "goods producing" industries. Thus the service producing industries w i l l be experiencing the highest rate of growth hence generating the greatest demand. The remainder of the chapter describes the type of development envisaged for the site and outlines the costs. 89 VI PROPOSED DEVELOPMENT S i t e Components The s i t e under consideration i s the e n t i r e c i t y block bounded by Robson-Granville-Smithe-Howe Streets. There are at this time several very large development projects e i t h e r proposed or i n the e a r l y stages of construction. Two of the l a r g e s t of these are located on whole c i t y blocks d i r e c t l y adjacent to Block 62. These two, the P a c i f i c Centre and the P r o v i n c i a l Government s i t e s have been described i n previous sections of t h i s study. The immediacy of the development p o t e n t i a l of Block 62 a r i s e s l a r g e l y because of these two major developments which have estimated to cost w e l l i n excess of $100,000,000. I t i s generally recognized that large developments of t h i s nature w i l l complement each other providing the economy i s healthy. H i s t o r i c a l l y most of the business community functions have been concentrated i n the v i c i n i t y of the Granville/Hastings Street i n t e r s e c t i o n . However, during the next 3-5 years i t i s expected that the i n t e r s e c t i o n of Georgia Street and G r a n v i l l e Street w i l l become much more the f o c a l point along with the Burrard Street and Georgia Street i n t e r s e c t i o n . The most important f a c t o r s causing this s h i f t w i l l be the P a c i f i c Centre pr o j e c t and the Royal Centre. The former i s located adjacent to Block 62 the subject s i t e . 90 Si t e Access. The Vancouver CBD i s located on a peninsula area. This f a c t of geography together with almost t o t a l r e l i a n c e on private v e h i c u l a r transportation f o r d a i l y commuting purposes i s r e f l e c t e d i n the i n c r e a s i n g l y serious t r a f f i c congestion probelms on the f i v e routes leading i n t o downtown Vancouver. Considerable study has been given to various means of improving access to the CBD. The a n t i c i p a t e d major s o l u t i o n includes the updating of the Georgia Viaduct Route which i s expected to connect f u r t h e r east with the 401 Trans-Canada Highway to the Fraser V a l l e y and other points east. More s i g n i f i c a n t i s the proposed new f i r s t narrows crossing and the proposed rapid transportation scheme. For purposes of the present i n v e s t i g a t i o n i t i s s u f f i c i e n t to say that G r a n v i l l e S t r e e t a major 2-way road situated on the eastern boundary of the s i t e together with Howe Street situated on the western boundary of the s i t e f u n c t i o n as the major north-south a r t e r i e s f o r the CBD. The subject s i t e has 475' frontage on these two major s t r e e t s . With respect to east-west transportation^ the s i t e has 260' frontage on Robson Street, (one way west) with a d i r e c t connection f o r Cambie Street bridge and easy access from Georgia Street. The southern boundary of the s i t e has 260' frontage on Smithe Street (one way east) with good access from Burrard Street. S i t e Dimensions. The s i t e i s rectangular i n shape and has the foll o w i n g dimensions ( i n c l u d i n g land): (a) North Boundary - along Robson Street - 260 f e e t . (b) East Boundary - along G r a n v i l l e Street - 475 f e e t . (c) South Boundary - along Smithe Street - 260 f e e t . (d) West Boundary - along Howe Street - 475 f e e t . The t o t a l s i t e area, i n c l u d i n g lane i s 123,500 square f e e t . Summary: S i t e Components. The s i t e lends i t s e l f to development beacuse (a) i t i s located on major t r a f f i c a r t e r i e s connecting the CBD with the lower mainland. (b) the s i t e located adjacent to P a c i f i c Centre and the proposed P r o v i n c i a l Government s i t e , i s an area of new development. (c) the s i t e has the advantage of plattage i n that i t o f f e r s a p a r t i c u l a r l y large area f o r development. VII PRELIMINARY DEVELOPMENT CONCEPTS The development concept f o r Block 62 requires the demolition of the e x i s t i n g standing stock on the s i t e . Usages envisaged f o r the s i t e are d i c t a t e d by the market and a l s o by the current owner's wishes. As i n most cases owners' wishes are manifest i n the terms of the land assembly agreement, and this p a r t i c u l a r s i t e i s no exception. The type of ownership involved would most l i k e l y be some type of j o i n t ownership or syndication, of the major landholders. Most of the Major owners involved are owner users, they are; Bank of Commerce, the Grosvenor Hotel, and Odeon Theatre's (B.C.) Ltd. These owner's w i l l want t h e i r present businesses to be accommodated i n the new development. 92 C i t y Zoning regulations as they would apply to the properties are f l e x i b l e . There i s no height l i m i t a t i o n and no required b u i l d i n g envelope. Parking i s not required although o f f - s t r e e t loading areas fo r truck services are required. Maximum development permitted on the neighbouring P a c i f i c Centre s i t e i s 12 x property area (excluding basement space). Block 62 measures 260' x 475 = 123,500 square f e e t ( i n c l u d i n g service land) and 12 x = 1,482,000 square f e e t of b u i l d i n g area. Development proposals w i l l be subject to C i v i c d i s c r e t i o n a r y -' approval which i n e f f e c t means a demand f o r high standards of arch-i t e c t u r a l design and openess a t and above ground l e v e l . The o v e r a l l development i s sketched on Figure VIII and described below. R e t a i l The constr u c t i o n of a new department store w i l l generate s u b s t a n t i a l increase i n the pedestrian t r a f f i c i n Georgia/ G r a n v i l l e and Granville/Robson environment. The P a c i f i c Centre when f u l l y developed on i t s 2 - block 6 acre s i t e w i l l provide some 200,000 square f e e t of a n c i l l a r y small r e t a i l shops. The lea s i n g manager f o r P a c i f i c Centre reports that demand i s running very high and that a l l the r e t a i l space has been committed. Block 62 c u r r e n t l y contains approximately 53,000 square f e e t of r e t a i l space. None of the ground f l o o r space i s vacant which would i n d i c a t e there i s a strong r e t a i l demand a t this p a r t i c u l a r l o c a t i o n . The completed scheme would contain approximately 130,000 square f e e t of r e t a i l space ( i n c l u d i n g theatres) on two l e v e l s . This represents a net 93 increase of 80,000 square f e e t . On the basis of the acceptance of space i n P a c i f i c Centre there should be no problem i n leasing an a d d i t i o n a l 80,000 square f e e t of r e t a i l space, e s p e c i a l l y i f i t i s an i n t e g r a l part of development containing a major h o t e l and o f f i c e space. Entertainment Before the "Theatre Row" experiment was sta r t e d almost a l l of the 7 theatres i n the G r a n v i l l e S t r e e t area had been renovated and redecorated. This was i n f a c t one reason behind the s e l e c t i o n of the area f o r the improvement program. In Block 62 Odeon Theatres (B.C.) Ltd. operates two theatres occupying 6000 square f e e t of s i t e area each and each seating 725 people. Further renovations and modifications of the e x i s t i n g f a c i l i t i e s are not economic and they are faced with the need f o r plans f o r expansion and improvement. Complexes of 3 or perhaps 4 theatres sharing common lobby f a c i l i t i e s are under consideration. Theatres do not need to occupy frontage on prime r e t a i l s t r e e t s . For purposes of th i s study i t i s f e l t that three theatres sharing one common lobby i s s u i t a b l e . The area required would be approximately 30,000 square f e e t and the complex would be located on the second l e v e l of the development. Hotel The h o t e l Grosvenor was b u i l t i n 1913. Constant renovation and redecoration has kept the f a c i l i t i e s i n the best c o n d i t i o n that the old b u i l d i n g s h e l l w i l l permit and i t remains one of Vancouver's popular t o u r i s t h o t e l s . There are 140 rooms and l i m i t e d convention and 94 banquet space. The owners of the Hotel Grosvenor are i n t e r e s t e d i n seeing the c onstruction of a large f i r s t c l a s s h o t e l on part of Block 62. They do not however wish to carry out the f u l l development program that i s warranted. The owners suggest a s i z e of 600 h o t e l rooms, a net increase of 460 rooms and convention f a c i l i t i e s f o r 1,000 people, and a beverage room seating 450 people. O f f i c e Structures Presently there are approximately 20,000 square f e e t of o f f i c e space i n Block 62. The market a n a l y s i s done e a r l i e r i n t h i s paper indicates that over the next decade there w i l l be a shortage i n o f f i c e space of at l e a s t 600,000 square f e e t . The concept c a l l s f o r two o f f i c e towers to be b u i l t i n stages to ensure m a r k e t a b i l i t y of space. The f i r s t phase would be a 40 storey o f f i c e structure above the two r e t a i l l e v e l s , and i t would contain approximately 600,000 square f e e t . The second phase w i l l be a smaller tower, 28 s t o r i e s high, comprising 384,000 square f e e t . This tower would come on the market a f t e r the f i r s t phase and only when demand f o r the space i s evident. Parking At present t h i s part of Downtown i s better served with parking spaces than any other part. However much of the e x i s t i n g surface w i l l disappear. 95 The parking demand generated i n the o f f i c e s , shops, and depart-ment store of P a c i f i c Centre i s w e l l i n excess of the 1700 spaces to be created. Development of Block 62 w i l l add further demand as w i l l the P r o v i n c i a l Government proposals f o r Block 61. The p r o v i s i o n f o r a s u b t a n t i a l parking f a c i l i t y i n Block 62 i s e s s e n t i a l . The h o t e l and theatre functions w i l l tend to balance the 24 hour use pattern.. I t i s estimated that the development w i l l require at l e a s t 2,000 parking spaces. Development Model The proposed plan envisages the development of two high r i s e o f f i c e towers and one high r i s e h o t e l structure above a two l e v e l shopping mall and entertainment complex. For purposes of thi s a n a l y s i s the larger high r i s e o f f i c e tower i s located on the Northwest corner of Block 62, the high r i s e h o t e l i s located on the Southwest corner of Block 62, the shopping mall and entertainment complex are to be developed concurrently. P r o v i s i o n has been made to develop the t h i r d high r i s e o f f i c e tower i n the centre of the block and f r o n t i n g on Howe Street when the market permits. A l l costs, r e n t a l s and expenses are based on present day f i g u r e s . P r o f e s s i o n a l fees are based on 67. of the t o t a l construction cost. I t has been assumed that the developer w i l l handle h i s own lea s i n g program and that 507. of the o f f i c e b u i l d i n g s w i l l be leased by the developer with the remainder being leased through r e a l estate agents and subject to the usual r e a l estate t a r i f f s . 96 For purposes of this analysis i t is assumed that the hotel w i l l be owner operated; however the developer could well lease the structure to a national or international hotel chain. Rentals received usually take the form of a guaranteed annual rental on a per room basis plus a percentage of the gross income above a predetermined level, as well as a percentage of the gross income from food and beverage sales. (a) Northwest Corner Development - The site has a frontage of 260' along Robson Street and 208' along Howe Street and Granville Street giving an area of 54,080 square feet. The development consists of a two storey mall and r e t a i l level of 108,160 square feet and a 40 storey office building containing 540,000 square feet of gross leaseable area. It i s assumed that 857. of the r e t a i l area is rentable with the other 157. dedicated to circulation areas. The office building is assumed to be 917. e f f i c i e n t , i.e. the f u l l floor rentable areas as defined by BOMA is 917. x 540,000 = 491,400 square feet. The extent of under-ground parking i s based pro rata on the land area associated with this phase of the development to the overall land areas of the block. (b) Southwest Corner - The site has a frontage of 260' along Smithe Street and 113' along Howe Street and Granville Street giving an area of 29,830 square feet. The development consists of a two storey r e t a i l mall, and convention level of 58,760 square feet and a 30 storey 600 room hotel and banquet space, beverage room, dining room of 40,000 square feet. It i s assumed that 857. of the r e t a i l area is rentable, the remaining 157, is dedicated to circulation. Underground parking is based pro rata on the land area associated with this pahse of the development to the overall land area of the block. It is anticipated that this phase of development w i l l take 18 months to complete and that construction w i l l 97 commence 6 months a f t e r the Northwest Corner (Phase I ) . (c) Stage I I I , Mid-Block Development - The s i t e has a frontage of 154' on Howe Street and G r a n v i l l e Street. The north and south boundaries of the s i t e are Stage I and Stage II r e s p e c t i v e l y . The s i t e area i s 40,040 square f e e t . The development c o n s i s t s of a two storey mall and r e t a i l b u i l d i n g over which i s b u i l t a 29 storey 400,000 square f e e t o f f i c e b u i l d i n g . I t i s assumed that 857o of the mall and r e t a i l l e v e l i s rentable and the o f f i c e b u i l d i n g i s 917. e f f i c i e n t . The f u l l f l o o r net rentable area as deined by BOMA. i s 917, x 400,000 square f e e t -364,000 square f e e t . The pro r a t a apportionment f o r parking i s 640 s t a l l s . For purposes of th i s a n a l y s i s i t i s assumed that t h i s stage of the development w i l l commence 12 months a f t e r the s t a r t of constru c t i o n of the f i r s t phase and w i l l take 21 months to complete. N a t u r a l l y i f the market s i t u a t i o n f o r o f f i c e space does not warrant another b u i l d i n g at t h i s time construction of the o f f i c e tower w i l l be postponed u n t i l the market s i t u a t i o n improves. The remainder of the chaper contains development cost, p r o f i t a b i l i t y and revenue and expense schedules f o r the various stages of development. PACIFIC CENTRE Stage I 98 Howe S tree t 208' Provinc c i a l Govern-ment Site 113' 154' Robson Street 260' Phase I Sit e Area - 260* x 208' = 54,080 s q / f t Gross Building Area - 12 x Si t e over 12 x 54,080 = 648,960 square fe e t O f f i c e B u i l d i n g 40 storeys - 540,000 square f e e t R e t a i l & Ma l l 2 l e v e l s - 108,60 square f e e t Parking - 850 cars Phase I I S i t e Area - 113' x 260' = 29,380 s q / f t Gross B u i l d i n g Area - 12 x 29,380 = 352,560 square f e e t Parking - 560 s t a l l s Hotel - 600 rooms R e t a i l and Mall - 58,760 square fe e t Phase I I I Sit e Area - 154' x 260' = 40,040 Gross B u i l d i n g Area - 12 x 40,040 = 480,480 square f e e t O f f i c e B u i l d i n g Area - 400,000 s q / f t R e t a i l and Mall - 80,080 square f e e t Parking - 640 s t a l l s G r a n v i l l e Street Smithe Street W FIGURE IX Sit e Plan: Proposed Development STAGE I WO LEVEL RETAIL-MALL DEVELOPMENT COST SCHEDULE Land - 2081 x 260' - 54,080 sq. f t . $ 3,785,60041 Construction Costs , _ (a) Parking - 850 sta l l s @ $4,500/stall $3,825,000 (b) Retail & Mall - 108,160 sq/ft @ $20 $2,163,200 (c) Office Building - 540,000 sq/ft @ $24 12,960,000 $18,948,200 Professional Fees - 6% of $18.95 million $ 1,020,000 Interim Financing Land - 3,785,000 x 24 mo. x 12% = 757,120 12 mo. Bldg - 18,948,200 x 24.mo. x 127. - 2,273,784 2 12 mo. $ 3,030,904 43 Land Tax 9 Over 2 years) 100,000 44 Building Tax (over 2 years) 520,000 Mortgage Placement Fee - 17. of mortgage 255,000 Legal & Promotion - 17. of construction 190,000 45 Leasing Fees - 275,000 Tenant's Allowances - $1.50/sq. f t . net rentable^ 6 737,100 Developers Overhead & Profit - 107. 2,883,180 Total Development Cost $31,714,984 Mortgage 25,500,000 Equity $ 6,214,984 100 STAGE I Notes: 41. Land for Pacific Center Stage II has been assembled at $70/sq„ f t . 42. Construction Costs - these costs are those of the Toronto Dominion Tower 43. Land Tax - comparable properties pay taxes equal to $1.20/sq„ft. land area/annum. 44. Estimated operating taxes at 80' sq/ft net rentable Building taxes during construction have been calculated as follows 648,160 sq. f t . net rentable x 804/sq f t x % x 2 yrs - $520,000. 45. Leasing Fees - the usual real estate t a r i f f i s 57. of 1st year rental and 27. for every year thereafter. For purposes of this analysis i t is assumed that 507. of the office tower w i l l be leased by real estate agents. The average lease term i s 5 years therefore the leasing fees w i l l be 137. of that part of the tower rented. 46. Developers i n today's market have been giving tenants an allowance for participations up to $1.50/sq. f t . of rentable area. Pacific Center allows $1.50 sq/ft. for tenant's allowances. 101 STAGE I REVENUE AND EXPENSE PRO FORMA Gross Revenue 47 Retail - 86,500 sq. f t . @ $12/sq. f t . $1,038,000 48 Office 491,400 sq. f t . @ $7.50/sq. f t . 3,685,550 Parking - 850 sta l l s @ $35/month2 357,000 Projected Gross Income $5,080,550 49 Vacancy @ 57. 254,000 E f f e c t i v e Gross Income $4,826,550 Expenses Property Taxes - 85.6c/sq. f t . ^ rentable - 494,682 Operating Cost - $1.64/sq. f t . 5 1 rentable - 947,756 $1,442,438 Net Income Before Debt Service $3,384,112 Debt Service - $25,500,000 5 2 - 10%7. -35 year amortization $2,639,250 Net Spendable Income $ 744,862 Return on Equity - $ 744,862 - 127. $6,214,984 102 STAGE I EXPENSE SCHEDULE Cost Per Sq.Ft. Net Rentable Area 577,900 s q / f t Property Taxes O f f i c e Cleaning E l e c t r i c a l - Non Recoverable Heating and A i r Conditioning Plumbing Eleva t o r $250/month x 9 elevators General Expenses Superintendent, Porters Washroom Supplies, Misc. Administrative Expenses Management @ 37. A u d i t and Legal Repairs and Maintenance Tenant Areas Non Rentable i n c l u d i n g l i g h t maintenance Equipment Insurance - 15c/$100 Parking and Storage Areas Cleaning E l e c t r i c i t y Salary Maintenance Note: E l e c t r i c i t y and l i g h t f i x t u r e s hence, are not included above. 85.6c 55.0c 12.0c 25.0c 1.2c 4.6c 15.0c 25.0c 1.0c 5.0c 5.0c 3.0C 4.9c 1.0c 2.0c 2.2c 2.0c 249,5c $ 494,682 315,845 69,348 143,475 6,935 27,000 85,685 143,800 5,520 31,390 31,390 17,337 28,422 5,779 11,558 12,714 11,558 $1,442,438 maintenance are recoverable items They cost 30c/sq. f t . ) r e s p e c t i v e l y . 15c/sq. f t . ) 103 STAGE I REVENUE AND EXPENSE PRO FORMA Notes: 47. Rental rates are comparable to P a c i f i c Centre. Rates on r e t a i l space may not be expressed as the f l a t rate of $12/sq. f t . rather they could have a lower base rate and a percentage clause i n which a d d i t i o n a l r e n t a l would be a percentage of gross sales over and above a set sales f i g u r e s . Quite often i n large r e t a i l complexes the tenants form a tenant a s s o c i a t i o n and contribute up to 15c/sq. f t . towards i t . Leases f o r both r e t a i l and o f f i c e w i l l contain tax and maintenance esc a l a t o r clauses. 48. Parking rates comparable to MacMillan Bloedel B u i l d i n g and B e n t a l l Centre. 49. Vacancy rate of 57. i s conservative. A survey of build i n g s completed on the l a s t four years i n d i c a t e s a 17. vacancy r a t e . 50. See expense schedule next page. 51. Expenses do not include items that are recoverable from tenants namely: (a) E l e c t r i c a l charges @ 30c/sq. f t . rentable area (b) Bulb replacement and maintenance a t 15c/sq. f t . rentable area. 52. C a l c u l a t i o n of mortgage amount - c a p i t a l i z e net income a t 107. gives a value of $33,841,112 Mortgage value i s 757. of the economic value of the pro j e c t -i n t e r e s t rate and amortization are based upon t a l k i n g to developers, current market s i t u a t i o n , and type and l o c a t i o n of development. 104 STAGE I I HOTEL - 600 ROOMS RETAIL - 49,000 Sq. F t . PARKING - 560 ROOMS Land - 113* x 260' - 29,330 sq. f t . @ $70/sq. f t . $ 2,053,100 Buildings Rooms - 600 rooms @ 450 sq. f t . gross @ $21 $ 5,670,000 Banquet, Beverage Room, C o c k t a i l , Convention  Lounge, Restaurant, Dining Room - 40,000 sq. f t . @ $20 $ 800,000 Mal l and R e t a i l - 58,640 sq. f t . x 80% @ $20/sq.ft. $ 940,000 Parking - 560 s t a l l s (? $4,000 $ 2,240,000 T o t a l Construction Cost $ 9,650,000 Pro f e s s i o n a l Fees - 6% x $9,650,000 $ 579,000 59 Furnishing - Rooms - $2,000/room $ 1,200,000 Interim Finance Land - $2,053,100 x 24 mo. x 12% = $492,720 12 mo. Bldgs- $9,650,000 x 18 mo. x 12% = $868,500 2 12 mo. $ 1,361,220 Leasing Fees - $l/sq. f t . $ 50,000 Tenants Allowance - $l/sq. f t . $ 50,000 $14,943,320 Developer's Overhead - 10% $ 1,493,332 T o t a l Development Cost $16,436,652 Financing (a) 1st mortgage on bldg - $12,000,000 (b) furnishings - $ 900,000 $12.900,000 $ 3,536,652 Return on Equity - 578,090 = 16.3% 2,536,652 59 Furnishing costs - this f i g u r e has been supplied by Eaton's Contract Sales D i v i s i o n 105 STAGE I I RETAIL - MALL LEVEL PROJECTED INCOME Projected Gross Income R e t a i l - 49,000 sq. f t . @ $12 Parking - no revenue as i t i s f o r h o t e l guests $ 588,000 T o t a l Gross $ 588,000 Vacancy 57. $ 29,400 E f f e c t i v e Gross Income $ 588,600 Expenses - 327. $ 178,752 Net Income Before Debt Service $ 379,848 Stage I I - T o t a l Net Income Before Debt Service $ 2,049,950 (a) 1st Mortgage - 12,000,000 @ 10 3/47. -30 y r . $1,318,800 (b) furnishings - 757. x 1,200,000 @ 127. - 10 y r . 153,060 $ 1,471,860 Cash Flow $ 578,090 106 HOTEL PROJECTED INCOME STATEMENT Sales and Income Room Revenue $ 3,385,000 Beverage Room $ 303,000 Bar Sales $ 767,200 Food Sales $ 1,126,500 Telephone and Other Income $ 120,000 Tota l Sales and Income $ 5,701,700 Cost of Sales Beverage Room $ 150,000 40% Bar $ 230,160 30% Food $ 416,805 37% Telephone and Other Income $ 20,000 14.3% Total Cost of Sales $ 786,965 Gross Operating Income $ 4,914,735 86%, P a y r o l l Rooms $ 591,300 18% Beverage Room $ 53,025 17.5% Bar Sales $ 92,064 12% Food Sales $ 337,950 30% Telephone and Other Income S 80,000 T o t a l Wages $ 1,154,339 20.2% Di r e c t Costs Rooms $ 361,350 11% Beverage Rooms $ 39,075 12.5% Bar Sales $ 92,064 12% Food Sales $ 416,805 37% Telephone and Other Income $ 20,000 14.3% To t a l D i r e c t Costs $ 929,294 16.3% Undistributed Expenses General and Administrative $ 370,500 6.5% Ad v e r t i s i n g and Promotion $ 142,500 2.57. U t i l i t i e s $ 142,500 2.5% Repairs and Maintenance $ 199,500 3.5% To t a l Undistributed Expenses $ 855,000 15.0% 107 HOTEL PROJECTED INCOME STATEMENT PAGE TWO Gross Operating P r o f i t (Before Taxes) Insurance, Interest and Depreciation $1,976,102 Taxes and Insurance Real Estate Taxes $ 250,000 4.2% F i r e Insurance 56,000 1.0% P r o f i t Before Interest, Depreciation and Taxes on Income $1,670,102 Note: 54. These expenses r a t i o s have been suggested by Harris Kerr and For s t e r , h o t e l planning consultants. 108 HOTEL PROJECTED DEPARTMENTAL INCOME ROOMS Revenue 600 rooms x 757.55 occupancy x 365 days @ $20/day56 $ 3,285,000 Cost of Sales'*^ P a y r o l l - 187. of gross revenue 591,300 Di r e c t Cost - 117. of gross income 361,350 Gross Operating P r o f i t - 717. Notes: 55. Estimated occupancy rates are:-January 557> February 607. March 607, A p r i l 657. May 807. June 907. July 1007. August 1007. September 907. October 857. November 607. December 557. 9007. - Average 757. B.C. Hotels A s s o c i a t i o n advises that occupancy rates i n Vancouver have average 857. - 877. f o r the past several years. The above occupancy f i g u r e of 757. i s a conservative estimate. 56. Room Rental Rates - Based on comparative Hotels Hotel Vancouver - si n g l e room $21 double room $27 Georgia Hotel - si n g l e room $18 - $25 double room $22 - $27 $ 952,650 $ 2,332,350 57. Cost of Sales - Expenses based on "Trends i n Hotel-Motel Business -1968" which covers U.S.A. hotels on a national b a s i s . The above estimates are 3^ 7. above U.S.A. experience f o r s i m i l a r h o t e l s . 109 HOTEL PROJECTED DEPARTMENTAL INCOME FOOD SALES _ . 58, 59, 60 Gross Sales ' ' (a) Dining Room 474,500 (b) Coffee Shop 360,000 (c) Banquet and Convention 292,000 61 Cost of Sales Food - 377o of Gross Sales 416,805 P a y r o l l - 307. of Gross Sales 227,950 D i r e c t Cost - 147. of Gross Sales 157,710 $1,126,500 $ 912,465 Gross Operating P r o f i t $ 214,035 Notes: 58. Dining room - 200 seats @ $6.50/day x 365 days $474,500 59. Coffee Shop - 200 seats @ $8.00/day x 300 days 360,000 60. Banquet and Convention - 1,000 seats @ $.80/day x 365 days 292,000 61. Cost of Sales Figures - ru l e s of thumb r a t i o issued by H a r r i s , Kerr, F o r s t e r and Company, h o t e l planning consultants. 110 HOTEL PROJECTED DEPARTMENTAL INCOME BEVERAGE ROOM c i 6 2 » 6 3 Gross Sales - 400 seats 2,400 barrels/year @ $100 $ 240,000 18,000 cases/year @ $3.50 63,000 Beaverages - 407. 120,000 P a y r o l l - 17.57. of gross sales 53,025 D i r e c t Cost - 12.57. of gross sales 39,075 T o t a l Gross Sales $ 303,000 Cost of Sales $ 212,100 Gross Operating P r o f i t - 307. $ 90,900 Notes: 62. Based on a 400 seat beverage room 63. The above c a l c u l a t i o n are based on fi g u r e s supplied by the Managers of the Devonshire Hotel and the Royal Towers Hotel. I l l PROPOSED HOTEL PROJECTED DEPARTMENTAL INCOME BAR SALES Sales 64 (a) C o c k t a i l Lounge 409,500 (b) Dining Lounge 6 5 6 & 240,900 (c) Banquet and Convention Rooms 116,800 $ 767,200 Cost of Sales Beverages - 307, of gross sales P a y r o l l - 127. of gross sales D i r e c t Cost - 127. of gross sales Gross Operating P r o f i t 230,160 92,064 92,064 $ 414,288 $ 352,912 Notes:-64. C o c k t a i l Lounge - revenue estimated based on 300 operating days, 150 seats averaging $9.50 per seat per day. 65. Dining Lounge - sales based on a 365 operating days, 200 seats, average $3.30/day. 66. Banquet,and Convention Room - sales based on 365 days operating, 1,000 seat capacity @ $.33/seat/day 112 HOTEL PROJECTED DEPARTMENTAL INCOME TELEPHONE AND OTHER INCOME Gross Income 67, 68 $ 120,000 Cost of Sales 140,000 Net Loss 20,000 Notes: 67. Other Income - estimates $200/room x 600 rooms - $120,000 68. The telephone operation always r e f l e c t s a loss as i t i s considered a service to the guests. Other income i s from laundry, vending machines, e t c . , 113 DEVELOPMENT COST SCHEDULE STAGE I I I Land $ 2,802,800 Construction Costs (a) Parking - 640 s t a l l s @ $4,000 $2,560,000 (b) R e t a i l 6c Ma l l - 80,080 s q / f t @ $20 $1,601,600 (c) O f f i c e Bldge - 400,000 s q / f t @ $24 $9,600,000 $13,761,600 Pr o f e s s i o n a l Fees - 6% on $13.76 M i l l i o n 800,566 Interim Financing Land - 2,802,800 x 33 mo. x 127. = 924,924 10 mo. Bldgs 13,761,600 x 21 mo. x 12% = 1,444,900 $ 2,369,824 2 12 mo. Mortgage Placement Fee - 1% $ 182,000 Land Tax $ 132,000 Bu i l d i n g Tax 75.5c x 428,000 x 21 mo. <. O Q _ 7 / 7 2 lT^o". $ 2 8 2 ' 7 4 7 Legal 6c Promotion - 1% of construction $ 137,616 Leasing Fees - 13% on 50% of O f f i c e Tower $ 177,450 Te nan t's A1lowance s - $1.50/sq. f t . rentable $ 642,500 Developer's Overhead 6c P r o f i t - 10% $ 2,130,910 $23,440,013 114 REVENUE AND EXPENSE SCHEDULE STAGE I II Gross Revenue Retail - 64,000 sq. f t . @ $12.00 $ 768,000 Office - 364,000 sq. f t . @ $7.50 $ 2,730,000 Parking - 640 sta l l s @ $35/month $ 268,800 Projected Gross Income $ 3,766,800 Vacancy - 5% $ 188,330 E f f e c t i v e Gross Income $ 3,578,470 Expenses Property Taxes - 85.6c/sq. f t . rentable $366,368 Operating Costs - $1.64/sq. f t . rentable 701,920 $ 1,068,288 Net Income Before Debt Service $ 2,510,182 Debt Service - 18,825,000 - 10%% - 35 y r . amortization $ 1,947,653 Net Spendable Income (Cash Flow) $ 562,529 Return on Equity - 562,529 - 12.2% 4,615,013 115 VIII CONCLUSION Having determined a development concept f o r the s i t e chosen i n e a r l i e r chapters, this chapter had conducted a f e a s i b i l i t y a n a l y s i s f o r the proposed development. Development of the h o t e l and theatre portions would be based on owner's wishes and i t i s assumed that demand e x i s t s f o r such f a c i l i t i e s . Development and m a r k e t a b i l i t y of the r e t a i l p ortion i s based on the assumption that demand i s strong because of (a) acceptance of r e t a i l space i n the P a c i f i c Centre and (b) acceptance of the present r e t a i l f a c i l i t i e s i n Block 62. Market opportunities f o r o f f i c e space i n Block 62 have been analyzed and i d e n t i f i e d . The a n a l y s i s i n d i c a t e s that there w i l l be a shortage of o f f i c e space during the l a t e r part of t h i s decade of approximately 750,000 square f e e t . Based on current day construction costs and operating revenues and expenses the development of the e n t i r e c i t y block i s economically f e a s i b l e . Such a development y i e l d s a 107. developers overhead and i p r o f i t f i g u r e as w e l l as a 127. return on equity on the r e t a i l and o f f i c e portion of the development and a 167. return on the h o t e l development. 116 BIBLIOGRAPHY BOOKS Beckman, G.H., Decentralization and Blighted Vacant Land, Cambridge: Massachusetts Institute of Technology, 1955. Blumerfeld, Hans, The Modern Metropolis, Cambridge: Massachusetts Institute of Technology, 1967. Boulding, K.E., Toward a General Theory of Growth, Glencoe: The Free Press, 1954. Burgess, E.W., The Growth of the City, Chicago: University of Press, 1925. Doxiadas "Between Dystopia and Utopia" (London: Saber Press, 1966) Three Lectures delivered at Trinity College. Mayer, KohnC.E., Readings i n Urban Geography, Chicago: The University of Chicago Press, 1959. Ratcli f f , R.U., Urban Land Economies, New York: McGraw-Hill Book Co., 1949. ., Real Estate Analysis, New York: McGraw-Hill Book Co., 1961. Weimer, A.M., Hoyt, H., Real Estate, New York: The Ronald Press Co. 1966. PUBLICATIONS OF THE GOVERNMENT, LEARNED SOCIETY AND OTHER ORGANIZATIONS Lower Mainland Regional Planning Board. Population Trends in the  Lower Mainland, 1921-1986. Summary Report, Vancouver: Lower Mainland Regional Planning Board, A p r i l , 1968. Technical Planning Board, Downtown Vancouver 1955-1976. A report prepared for Vancouver City Council, Vancouver: Planning Department, 1955. 117 Vancouver Planning Department. Redevelopment i n Downtown Vancouver. Report No. 5. Vancouver: City of Vancouver Planning Department, July, 1964. Vancouver Planning Department. Kitsilano - CBD. A brief report prepared for Vancouver City Council, Vancouver: City of Vancouver Planning Department, September, 1964. UNPUBLISHED MATERIALS Rooney, W.J., "Effect of the Proposed Redevelopment of Blocks < '. and 52 Upon Vancouver's Central Business D i s t r i c t " . Unpublished Graduating Essay, The University of Bri t i s h Columbia, Vancouver, 1969. Smith, Larry, and Company. "The Economic Analysis of Downtown Vancouver". A report prepared for The Vancouver City Planning Department, Vancouver, 1965. Smith, Larry and Company. "Central D i s t r i c t Redevelopment in Downtown Vancouver". A report prepared for The Vancouver City Planning Department, Vancouver, 1963. APPENDIX "A" 118 LAND USE STUDY INTRODUCTION A developer who i s committing m i l l i o n s of d o l l a r s to a major development wi t h i n the CBD must be able to assess trends i n land use, wit h i n the area. There i s very l i t t l e systematic or organized data d e s c r i b i n g the land use or development of t h i s area so n a t u r a l l y a land use study i s necessary to provide c e r t a i n basic information f o r development de c i s i o n s . This study describes not only the qu a n t i t a t i v e and q u a l i t a t i v e c h a r a c t e r i s t i c s of the standing stock but a l s o ownership c h a r a c t e r i s t i c s i n the CBD with a view to gi v i n g an a l l encompassing pi c t u r e of the CBD. This s e c t i o n of the paper o u t l i n e s the land use study, the sources of information, the r e s u l t s attained and any l i m i t a t i o n s . Study Area - the area under study comprises 73 c i t y blocks. Figure I I ou t l i n e s the study area. Data C o l l e c t e d - Lack of organized data sources necessitated a f i e l d survey to acquire much of the data. The Vancouver C i t y H a l l was the other prime source of data. Data at the C i t y H a l l was a v a i l a b l e on an i n d i v i d u a l property b a s i s . As there are approximately 2,500 properties included i n the study area amalgamation of the data i n t o a form s u i t a b l e f o r a land use d e s c r i p t i o n of the CBD has been a long and tedious task. The fo l l o w i n g exppendix o u t l i n e s the type of data c o l l e c t e d , the sources and l i m i t a t i o n s . 119 Each property has been described considering the following c h a r a c t e r i s t i c s : Land (a) Assessed value (b) Size - expressed i n square f e e t (c) Land use (d) Parking - on s i t e - on s t r e e t (e) Size of st r e e t s and lanes Buildings (a) Assessed value (b) S i t e coverage (c) Condition - very good - good - f a i r - poor - very poor B u i l d i n g Use (a) Type of use - i d e n t i f i e d by two use codes (1) a 4 - d i g i t use code ou t l i n e d i n Table (2) the 3 - d i g i t Standard I n d u s t r i a l C l a s s i f i c a t i o n code (b) Size of tenant's premises (c) Type of tentant- l o c a l - n a t i o n a l - branch - head (d) Number of employees (e) Years at this location 0 - 5 6 - 1 0 11 - 50 51 - 100 101 - 200 201 - 500 501 0 - 5 years 6 - 10 years over 10 years Land Ownership (a) Owner's name and address (b) Type of owner - owner user - owner investor (c) Type of owner - resident - non resident - trust co. (includes trusts) - City of Vancouver - Province of B.C. - Gov't of Canada (d) Length of ownership 0 - 5 years 6 - 1 0 years 11-20 years over 20 years 121 Data Sources and Limitations Land 1. Assessment - Assessed values of land have been obtained from the assessment r o l l s of the C i t y of Vancouver. The major l i m i t a t i o n s are as follows: (A) P r o v i n c i a l Statutes d i c t a t e that the t o t a l assessment r o l l s of the C i t y can only increase by 107o per annum. Consequently properties i n areas of r a p i d l y increasing value may not be assessed at t h e i r proper l e v e l . (B) Timing i s another l i m i t a t i o n . Assessments used have been taken from the 1969 assessment r o l l which was based on assessor's inspections done i n l a t e 1968. Thus, when comparing the assessment of one property to that of another to determine i t s r e l a t i v e value i n the o v e r a l l scheme of things the values used are based on 1968 opinions. 2. Size of land - Dimensions of the s i t e s have been taken from l e g a l subdivisions maps. The area of the s i t e s has been expressed i n square f e e t . 3. Use of The Land - A c t u a l use of the land, i . e . whether i t i s vacant, used f o r parking, or used f o r b u i l d i n g s has been determined by f i e l d i n s p e c t i o n . 4. Parking - The type of parking whether o f f s i t e or on s i t e , and the number of parking s t a l l s has been determined by a c t u a l inspection. 5. Size of Streets and Lanes - Dimensions have been attained from the l e g a l s u b d i v i s i o n map. The a c t u a l area of str e e t s and lanes has been expressed i n square f e e t . TABLE XVIII BLOCK, STREET AND BUILDING AREA : DISTRICT LOT BASES ^ *• square f e e t Block No. D i s t r i c t Lot T o t a l Block Area* Street Area * Vacant Land T o t a l Bui Area * 8 541 34,800 12,880 0 149,886 9 541 17,905 6,204 0 80,699 10 541 37,850 37,322 0 154,968 11 541 96,554 42,520 6,000 340,636 12 541 61,920 35,000 299,750 13 541 53,300 34,300 382,300 14 541 54,720 34,300 314,046 15 541 62,400 34,000 240,000 16 541 117,292 44,800 24,000 158,582 20 541 60,060 47,428 3,120 247,403 21 541 61,920 45,428 187,836 22 541 66,990 47,428 380,887 23 541 • 49,920 45,428 18,720 169,310 24 541 74,270 45,428 6,240 337,352 25 541 62,400 45,428 122,959 26 541 62,400 45,428 122,338 30 541 109,200 72,400 319,663 31 541 109,200 63,906 18,000 361,775 32 541 109,200 67,160 15,000 207,796 33 541 109,200 67,160 3,000 321,133 34 541 109,200 63,906 18,000 265,891 35 541 109,200 63,900 36,240 171,475 36 541 109,680 63,900 42,000 84,450 37 541 118,300 52,546 232,958 38 541 135,000 61,443 81,000 226,444 40 541 120,000 69,940 12,960 298,663 41 541 120,000 60,000 24,000 300,532 42 541 118,320 65,380 12,000 301,168 43 541 119,100 65,380 670,301 44 541 120,000 60,000 12,000 497,316 45 541 114,000 60,000 33,000 155,210 46 541 126,000 59,000 809,500 47 541 130,000 59,000 205,260 48 541 130,000 62,360 51,493 50 541 118,500 69,940 873,743 51 541 120,000 60,000 100,000 52 541 120,000 65,300 53 541 121,000 65,380 388,163 54 541 120,000 60,000 627,655 55 541 120,000 60,000 39,840 81,600 56 541 120,000 60,000 51,960 55,438 123 TABLE XVIII (continued) Block No. Di s t r i c t Lot Total Block Area* Street Area* Vacant Land* Total Builc Area* 57 541 120,000 60,000 99,750 3,900 58 541 123,000 60,000 78,000 51,113 60 541 116,280 65,000 46,080 89,743 61 541 114,000 53,860 114,000 6,000 62 541 114,000 65,000 30,000 223,910 63 541 114,000 65,000 218,371 64 541 114,900 62,807 615,601 121,785 65 541 126,210 62,800 27,000 107,767 66 541 114,500 62,800 53,000 21,609 67 541 117,000 62,800 57,000 83,000 68 541 117,000 76,000 285,510 69 541 114,000 65,000 57,600 434,307 71 541 114,000 62,800 120,000 4,605 72 541 114,000 62,800 15,000 173,493 73 541 114,000 62,800 136,486 74 541 114,000 62,800 13,000 41,854 75 541 114,000 62,800 18,000 162,817 1 185 121,450 112,450 730,800 2 185 151,279 88,933 120,532 1,128,712 3 185 152,990 99,477 7,920 488,615 4 185 134,937 153,733 .34,971 461,234 15 185 162,695 137,830 26,070 80,747 16 185 86,163 72,218 233,180 17 185 174,240 101,640 60,984 201,733 18 185 246,808 160,050 56,528 221,801 19 185 82,661 43,398 48,000 ing Source: Compiled by researcher from legal maps, site inspections and business licenses. 124 TABLE XIX LAND AVAILABLE FOR DEVELOPMENT Block Developed Vacant T o t a l Streets & Lanes T o t a l No s q / f t s q / f t s q / f t s q / f t s q / f t DISTRICT LOT 541 8 34, 800 0 34 800 12,880 47 680 9 17 ,905 0 17 908 6,204 24 ,109 10 37 ,850 0 37 850 37,323 75, 173 11 90 ,554 6,000 96 554 42,520 139 ,074 12 61 ,920 0 61 920 43,876 105 976 13 53 ,300 0 53 300 38,016 91 ,316 14 54 720 0 54, 720 4,676 59 ,396 15 62 400 0 62 400 62,400 124 600 16 93, 292 24,000 117, 292 44,804 162 096 20 56 940 3,120 60 060 47,428 107, 488 21 61, ,920 0 61 920 45,428 107 348 22 66 990 0 66 990 47,628 114 618 23 31 200 18,720 49 920 45,428 95, 348 24 68 030 6,240 74 270 56,639 130, ,909 25 62, 060 0 62 060 45,428 107 488 26 61 ,800 0 61 800 45,428 107, 228 30 109 ,200 0 109 ,200 72,406 181, 606 31 106 ,560 13,000 109, 560 63,906 173, 466 32 91 : ,701 15,000 106, 701 67 ,161 173, 862 33 105 ,680 3,000 108 680 67,161 175, 840 34 191, ,200 18,000 109, 200 63,906 173, 106 35 66, 960 36,240 103, 200 63,906 167, 106 36 67, ,680 42,000 109 680 63,906 173, 586 37 118 ,300 0 118, 300 63,906 182, 206 38 54 000 81,000 135, 000 61,443 196, 443 40 105, 160 12,960 118, 120 69,940 188, 060 41 100 620 24,000 124 620 60,080 188, 700 42 106, 320 12,000 118, 320 65,380 183, 700 43 119, 100 0 119, 100 65,380 184, 480 44 108, 000 12,000 120 000 60,080 lau, 080 45 81 000 33,000 114 000 60,080 174, 080 46 99, ,000 0 99, 000 59,080 158 080 47 130 ,000 0 130 000 59,080 189 000 48 130 ,000 0 130 000 62,360 192, 360 50 118, 500 0 118 500 76,440 194, 940 51 120 000 0 120, 000 59,080 179 080 52 120,000 120 000 74,140 194, ,142 53 99 ,000 21,000 120 000 74,140 194, 140 54 119 ,880 0 119, 880 69,080 188 960 55 80, ,280 39,840 120, 120 69,080 189 200 125 TABLE XIX (continued Block Developed Vacant T o t a l Streets & Lanes T o t a l No s q / f t s q / f t s q / f t s q / f t s q / f t DISTRICT LOT 541 56 73,520 45,000 118,520 69,080 187,600 57 20,250 99,750 120,000 69,080 189,080 58 45,000 78,000 123,000 69,080 192,080 60 70,200 46,080 116,280 66,594 182,874 61 0 114,000 114,000 53,866 167,866 62 97,440 18,000 115,440 66,594 182,004 63 114,000 0 114,000 66,594 180,554 64 50,960 64,000 114,960 62,807 177,767 65 99,210 27,000 126,210 62,807 189,017 66 57,500 57,000 114,500 62,807 177,307 67 60,000 57,000 117,000 62,807 179,807 68 82,515 0 82 ,515 76,263 158,778 70 57,750 57,600 57,600 65,638 123,238 71 18,000 96,000 114,000 53,866 167,866 72 95,640 19,000 114,640 64,978 179,618 73 114,000 0 114,000 64,978 178,978 74 101,000 13,000 114,000 53,866 167,866 75 96,000 18,000 114,000 53,866 167,866 T o t a l 4,389,887 1,339,550 5,729,437 3,342,834 DISTRICT LOT 185 1 121,000 0 121,000 0 0 2 151,279 0 151,279 112,450 263,729 3 145,070 7,920 152,990 88,933 241,923 4 199,960 34,977 234,937 153,733 388,670 5 77,154 80,000 157,154 46,754 203,908 15 136,625 26,070 162,695 13,783 176,478 16 115,700 74,218 189,918 86,163 276,081 17 113,256 60,984 174,240 101,640 175,880 18 190,180 56,628 246,808 160,050 406,858 19 82,661 0 82,661 43,498 126,159 T o t a l 1,332,885 3,407,977 1,673,682 807,004 126 Buildings 1. Assessed Value - The assessment r o l l of the C i t y of Vancouver has assessed values for improvements on the lan \ as w e l l as the land. This information i s subject to tb2 same l i m i t a t i o n s as discussed under land assessment. There •_• one other l i m i t a t i o n when applying assessed value to b u i l c m e s ; and i t can r e a l l y be considered as an extension of the i.ime l i m i t a t i o n discussed under land assessment. This applies to newly constructed b u i l d i n g s i . e . buildings constructed af :,.-r t h i s assessment r o l e (1969) has been prepared. 2. S i t e Coverage by Buildings - the s i t e s i z e i s e a s i l y determined from the l e g a l s u b d i v i s i o n map of the C i t y of Vancouver. Once, t h i s information has been determined the a c t u a l s i t e coverage can be estimated w i t h i n a 107. e r r o r by a c t u a l s i t e i n spection. Two other sources of this informati 1 , namely Vancouver C i t y H a l l and the owner have been ruled ou f o r the f o l l o w i n g reasons: (a) the owners, i n most cases ar not aware of the e x t e r i o r dimension of the b u i l d i n g s and ha e no record of i t , (b) C i t y H a l l has records of this type of information but i t i s recorded i n such a way that time required to r e t r i e v e t h i s information far outweighs the b e n e f i t s of such information. I t was f e l t that an estimate of s i t e coverage would s a t i s f y the requirements. On the average the variance of estimated from a c t u a l i s approximately 57. e i t h e r way. 127 3. Condition of the Bui l d i n g - This information has been gathered from a f i e l d survey premised on the external appearance and s t r u c t u r a l c o n d i t i o n and includes a l l b u i l d i n g s regardless of use. The c l a s s i f i c a t i o n i s simple i n that i n d i v i d u a l b u i l d i n g s are defined e i t h e r very good, good, f a i r , poor, or very poor. Buildings l i s t e d as very good have j u s t r e c e n t l y been constructed and provide a l l the amenities of new b u i l d i n g s . Buildings classed as good a l s o provide these amenities (good elevat o r s , a i r conditioning, good l i g h t i n g ) and although they are not newly constructed they have probably been b u i l t i n the l a s t ten years. Buildings c l a s s i f i e d as f a i r are those 10 - 30 years of age. Most of the buil d i n g s have an a i r exchange system (not a i r conditioning) and have reasonably good l i g h t i n g and ele v a t o r s . The f a i r category has the broadest guide l i n e s of a l l c l a s s i f i c a t i o n s hence w i l l probably include the greatest number of b u i l d i n g s . This category may range from those buildings needing only a coat of paint to those r e q u i r i n g extensive r e h a b i l i t a t i o n . Buildings c l a s s i f i e d as poor are ^ nost l i k e l y to be those bui l d i n g s of 30 years of age, have no a i r exchange or a i r conditioning systems and are i n d i r e need of r e h a b i l i t a t i o n or complete ra z i n g . They may have an elevator but i t w i l l be manually c o n t r o l l e d and the service very poor. Buildings ear-marked as very poor are those which d e f i n i t e l y show s t r u c t u r a l wear and tear and should be torn down. 128 Two things should be noted with regard to t h i s c l a s s i f i c a t i o n system: (1) other than the above mentioned there i s no reference or check l i s t against which the b u i l d i n g c h a r a c t e r i s t i c s may be compared. I t i s d i f f i c u l t and time consuming to set up and properly u t i l i z e a f u l l y o bjective check l i s t . For purposes of this study the c l a s s i f i c a t i o n i s based on a quick i n s p e c t i o n of the b u i l d i n g - were possible i n s i d e and out. Appraisers c a l l i t a "windshield inspection". (2) the d i s c u s s i o n of the various c l a s s i f i c a t i o n s does not include an a n a l y s i s of the economic l i f e of the b u i l d i n g , although i n c l u d i n g such things as a i r conditioning, l i g h t i n g , and q u a l i t y of elevator service give some consideration to the economic l i f e of the b u i l d i n g . This i s merely a cursory examination of the p h y s i c a l c h a r a c t e r i s t i c s of the standing stock and not an attempt to c l a s s i f y the structure of the b u i l d i n g on an economic land use b a s i s . B u i l d i n g Use 1. Type of Use - (a) 4 d i g i t use code - Originated by L.Smith and Co. Ltd f o r t h e i r b u i l d i n g use inventory done i n 1964. It s components are o u t l i n e d on E x h i b i t (b) 3 d i g i t Standard I n d u s t r i a l C l a s s i f i c a t i o n code. This i s a more common c l a s s i f i c a t i o n system, and although i t i s not used i n t h i s study the uses have been coded f o r future studies. This use code has been taken from business licenses i n Vancouver C i t y H a l l . The coding has been done by the Planning Department. 129 2. Size of Tenant's Premises - The size of the premises i s recorded on business licenses and kept on f i l e at City Hall. This source cannot be relied upon for 1007. accuracy as the records are not updated for at least three months after a business has moved or expanded i t s premises. However, this information has been verified either by f i e l d inspection or by information attained from the tenant himself, or the building owner. 3. Length of Time at that Location - this type of information has been attained by comparing the businesses and their location as listed i n the Henderson Directory for the years 1969, 1964 and 1959. If the tenant was l i s t e d at his particular location i n 1969 and 1964 but not i n 1959 this means he has been at that location for 6-10 years. Ownership: Land and Buildings 1. Owner's Name and Address - this main source of this information has been the assessment r o l l s for the City of Vancouver. The main limitation results from a time problem i n that the assessment r o l l used is for the year 1969 yet i t may not show current ownership status. 2. Type of Owner - (a) Owner-user or owner-investor. Determined from the information given on the assessment r o l l . If the owner is located at the property address and occupies the major portion of the building then he is considered to be an 130 owner-user otherwise he i s an owner-investor. (b) Resident, non-resident,trust co,, f e d e r a l , p r o v i n c i a l or municipal governments - Determined from information given on the assessment r o l l . 3. Length of Ownership - There are four length of ownership categories: 0-5 years, 6-10 years, 11-20 years, greater than 20 years. Properties and owners have been compared on the assessment r o l l s f o r the years 1969, 1964, 1959, and 1949. Thus i f i n comparing one property and i t s owner on the assessment r o l l s f o r the years mentioned and one fi n d s that the one property has the same owner f or the years 1969, 1964, and 1959 but not f o r 1949 then one can conclude that the property has been owned by one owner f o r between 11 and 20 years. Land Use Inventory - The Central Business D i s t r i c t i s the s o c i a l hub of the c i t y with business, administrative, commercial and c u l t u r a l development predominating. The area also contains a number of other land uses a n c i l l a r y to the main uses, forming a residue of the o r i g i n a l settlement which through a process of e v o l u t i o n has been transformed from a s e l f contained community to the c e n t r a l area of a large metropolitan area. There are several d i s t i n c t areas of land use i n the C.B.D. (a) R e t a i l Section. (1) G r a n v i l l e Street Axis - Located between Hastings and Nelson Streets. The axis expands to include Howe and Seymour Streets between Georgia and Hastings. The Hudson's Bay Store located 131 on the northeast corner of Georgia and G r a n v i l l e Streets the main stay of the area. The area w i l l become the primary r e t a i l area i n the CBD when Eaton's Department Store moves in t o i t s new store across from the Bay. (2) Hastings Street Axis - located between G r a n v i l l e and Cambie Streets. The area consists of a se r i e s of s p e c i a l t y r e t a i l shops r e l y i n g on pedestrian t r a f f i c generated by Eatons and Woodward's Department Stores. (3) Robson Strausse - located on Robson Street between Burrard and Bute. The area c o n s i s t s of a se r i e s of small r e t a i l s p e c i a l t y shops with a European f l a v o u r . (b) High Density O f f i c e . (1) Es t a b l i s h e d Core - Located on Hastings and Pender Streets between Burrard and Seymour. (2) Newer High Density Buildings - (a) One area located west of Burrard with b u i l d i n g s f r o n t i n g on Burrard, Hastings and Georgia Streets as f a r west as Bute Street. Note: See Land Use Map i n the back of the f o l d e r . The other area c o n s i s t s of Blocks 42 - 52 and i s bounded by Howe, Robson, G r a n v i l l e and Dunsmuir St r e e t s . (c) Medium Density O f f i c e . Located west of Thurlow Street i n an area bounded by Georgia, Cardero, Hastings and Thurlow. Medium density o f f i c e b uildings up to 10 years o l d with a s i t e coverage of f i v e , from on Hastings, Georgia and Pender Streets. Most of the new buildings i n t h i s category are located on secondary s t r e e t s such as Bute S t r e e t and M e l v i l l e S t r eet. 132 (d) Light I n d u s t r i a l and Wholesaling. (1) Area bounded by Cordova and Cambie Streets and the waterfront, c o n s i s t i n g of pre-1900 mu l t i s t o r ^ buildings s t i l l s t r u c t u r a l l y sound. (2) Area bounded by Seymour, Robson, Homer and Nelson Streets c o n s i s t i n g of two storey modern type warehouses with adjacent vacant land spaces f o r parking and expansion purposes. (3) Area bounded by Hamilton, Robson, Beatty, and Smithe Streets, adjacent to the above warehouse area, and c o n s i s t i n g of multi-storey b u i l d i n g s of the nature found i n the water-fr o n t area. (e) Public Areas. This i s a f i v e block area bounded by Homer, Robson Cambie, Georgia, Beatty, Pender, Hamilton and Dunsmuir St r e e t s . The Area contains the post o f f i c e , the Queen E l i z a b e t h Theatre, the Voca-t i o n a l I n s t i t u t e , the Bus Depot, a Ca t h o l i c Church, and the future s i t e f o r C.B.C. T e l e v i s i o n , and a block of vacant land being assembled by the C i t y of Vancouver. ( f ) Hotel. An area f r o n t i n g on Georgia, between Howe and Burrard St r e e t s . In the l a s t f i v e years major construction has been out south on Howe and west on Robson. Recently announced plans c a l l f o r develop-ment of hotels on Burrard Street w i t h i n the core of the c i t y . 133 TABLE XX VACANT LAND - LENGTH OF VACANCY square f e e t Block D i s t r i c t „ c . c m . ^ , . N o L o f c 0 - 5 years* 6 - 1 0 years* Over 10 years* 8 541 0 0 0 9 541 0 0 0 10 541 0 0 0 11 541 0 0 6,000 12 541 0 0 0 13 541 0 0 0 14 541 0 0 0 15 541 0 0 0 16 541 0 0 24,000 20 541 0 0 3,120 21 541 0 0 0 22 541 0 0 0 23 541 0 0 18,720 24 541 0 0 0 25 541 0 0 0 26 541 0 0 0 30 541 0 0 0 31 541 0 0 3,000 32 541 0 0 12,000 33 541 0 0 3,000 34 541 0 0 18,000 35 541 0 0 36,240 36 541 0 0 12,000 37 541 0 0 0 38 541 0 0 81,000 39 541 0 0 0 40 541 0 0 12,960 41 541 3,000 0 21,000 42 541 3,000 0 9,000 43 541 0 0 0 44 541 0 0 12,000 45 541 18,000 0 15,000 46 541 0 0 0 47 541 0 0 0 48 541 0 0 0 50 541 0 0 0 51 541 0 0 0 52 541 0 0 0 53 541 0 0 0 54 541 0 0 0 55 541 0 0 39,840 56 541 12,000 0 39,960 TABLE XX (continued Block D i s t r i c t 0-5 years* 6-10 years* Over 1 No. Lot 57 541 46,560 0 53,190 58 541 0 6,000 60 17,760 0 28,320 61 541 0 0 114,000 62 541 0 6,000 24,000 63 541 0 0 0 64 541 18,000 16,560 27,000 65 541 0 6,000 21,000 66 541 9,000 13,560 28,440 67 541 0 9,000 48,000 68 541 0 0 0 70 541 0 39,000 18,600 71 541 0 0 120,000 72 541 0 12,000 3,000 73 541 0 0 0 74 541 6,000 0 6,000 75 541 0 0 15,000 1 185 0 0 0 2 185 28,413 31,136 75,825 3 185 0 3,564 4,356 4 185 0 0 43,500 15 185 21,714 0 4,356 16 185 0 8,910 56,398 17 185 0 0 65,340 18 185 4,356 30,492 17,424 19 185 0 0 0 Source: Primary Research Compiled by Writer 135 TABLE XXI VACANT BUILDING SPACE Block D i s t r i c t Vacant 7. of Vacancy Vacancy No. Lot Space(sq/ft) T o t a l 8 541 9 541 3,314 .37. 2.07. 10 541 27,000 2.77, 31.07. 11 541 7,000 .77. 4.07. 12 541 18,000 1.87» 5.07. 13 541 14 541 19,000 1.97. 6.07. 15 541 4,000 .47. 1.07. 16 541 4,300 .47. 1.87. 20 541 3,144 .37. 1.57. 21 541 18,138 1.87. 8.77. 22 541 1,375 .17. .57. 23 541 2,000 .27. 1.07. 24 541 20,060 1.97. 6.07. 25 541 2,050 .27. 1.67. 26 541 9,500 1.07. 7.57. 30 541 22,000 2.27. 6.87. 31 541 36,175 3.67. 10.07. 32 541 10,756 1.07. 5.17. 33 541 11,425 1.17. 3.57. 34 541 22,825 2.37. 8.17. 35 541 10,800 1.07. 6.07. 36 541 1,704 .27. 2.07. 37 541 0 0 0 38 541 11,000 1.17. 5.07. 40 541 2,954 .37. 1.07. 41 541 1,056 .17. .37. 42 541 27,424 2.57. 9.07. 43 541 0 0 0 44 541 7,204 .77. 1.07. 45 541 0 0 0 46 541 0 0 0 47 541 0 0 0 48 541 0 0 0 50 541 0 0 0 51 541 0 0 0 52 541 0 0 0 53 541 13,175 1.37. 3.57. 54 541 3,700 .47. .57. 55 541 1,900 .27. 2.07. 56 541 6,000 .67. 11.07. 57 541 3,900 .47. 100.07. 60 541 6,429 .67. 12.07. 61 541 1,000 .17. 1.07. 62 541 14,330 1.47. 6.57. TABLE XXI (continued) 136 Block D i s t r i c t Vacant 7. of Vacancy Vacancy No. Lot Space ( s q / f t ) T o t a l 63 541 7,000 .77. 3.57. 64 541 0 0 0 65 541 8,844 .87. 8.07. 66 541 6,000 .67o 2.87. 67 541 0 0 0 68 541 78,600 7.37c 36.07. 70 541 2,000 .27, .57. 71 541 4,000 .4% 100.07. 72 541 6,200 .67o 3.57. 73 541 4,000 .47, 3.07. 74 541 2,500 .27o 6.07. 75 541 7,500 .77o 4.57. 1 185 4,378 .47o .67. 2 185 4,800 .47. .47. 3 185 20,525 2.07. 4.57. 4 185 21,635 2.17. 5.07. 15 185 22,937 2.27. 28.47. 16 185 14,610 1.47. 6.07. 17 185 24,726 2.37. 8.07. 18 185 2,712 .37. 1.07. 19 185 Source: Primary research by w r i t e r TABLE XXII LAND OWNERSHIP ^ square f e e t Block Owner* Owner* Resident* Non * Trust* Municipal* Prov-* Fed-* No user inves tor Resident Co i n c i a l e r a l (1) (2) (1) (2) (3) (4) (5) (6) DISTRICT ' LOT 541 8 12,000 22,800 34,800 0 0 0 0 0 9 13,880 4,025 13,625 4,280 0 0 0 0 10 3,000 34,850 37,850 0 0 0 0 0 11 6,000 90,554 75,554 15,000 0 0 0 6,000 12 46,560 15,840 9,240 55,800 0 0 0 0 13 0 65,000 0 65,000 0 0 0 0 14 0 62,400 15,600 33,120 14,000 0 0 0 15 6,140 0 0 0 0 0 0 64,400 16 45,600 71,693 102,692 14,600 0 0 0 0 20 6, 000 54,060 42,060 18,000 0 0 0 0 21 19,200 43,200 31,680 18,720 12,000 0 0 0 22 9,900 52,500 9 ,360 29,040 24,000 0 0 0 23 0 62,400 0 62,400 0 0 0 0 24 0 62,400 12,480 20,000 28,920 0 0 3,000 25 0 62,400 36,060 20,600 3,800 1,500 0 0 26 12,480 49,320 33,460 28,390 0 0 0 0 30 54,200 55,000 71,580 16,640 0 21,000 0 0 31 15,840 93,720 80,760 12,000 16,800 0 0 0 32 23,500 85,700 62,500 31,695 15,000 0 0 0 33 21,000 88,200 69,200 40,000 0 0 0 0 34 39,000 70,200 76,200 6,000 9,000 18,000 0 0 35 69,000 40,200 57,600 12,480 3,120 24,000 12,000 0 36 41,400 67,800 97,200 12,000 0 0 0 0 37 118,300 0 118,300 0 0 0 0 0 38 93,000 42,000 66,000 12,000 0 56,000 0 0 40 40,000 80,000 96,000 0 15,000 0 9,000 0 41 50,000 70,000 99,000 4,560 13,440 0 0 0 42 52,200 66,120 78,000 4,560 19,560 16,200 0 0 43 110,100 9,000 42,000 77,100 0 0 0 0 44 88,500 31,500 31,500 88,500 0 0 0 0 45 30,000 90,000 54,000 66,000 0 0 0 0 46 130,000 0 0 0 0 0 00 130,000 47 130,000 0 0 0 0 130,000 0 0 48 130,000 0 0 0 0 130,000 0 0 50 23,000 95,500 0 95,500 0 23,000 0 0 51 0 130000 0 0 0 0 130,000 0 52 0 130,000 0 0 0 0 130,000 0 53 15,000 105,000 54,000 45,000 21,000 0 0 0 54 88,500 21,500 74,500 0 24,000 27,000 61,500 0 138 TABLE XXII (continued) Block Owner* Owner* Resident* Non* Trust* Municipal* Prov* Fed-* No user inves tor Resident Co i n c i a l e r a l (1) (2) (1) (2) (3) (4) (5) (6) 55 79,560 40,440 90,720 9,000 5,280 15,000 0 0 56 70,000 50,000 60,560 22,560 0 39,000 0 0 57 120,000 0 0 0 0 0 0 120,000 58 50,000 70,000 80,000 12,000 9,000 20,000 0 0 60 22,000 92,000 81,400 21,600 10,400 0 0 0 61 114,000 0 0 0 0 0 114,000 0 62 57,000 57,000 90,000 12,000 12,000 0 0 0 63 36,000 78,000 60,000 4,000 14,000 0 0 7,200 64 8,000 106,000 66,000 18,000 12,000 16,000 0 0 65 75,000 39,000 114,000 0 0 0 0 0 66 39,600 74,400 77,500 10,000 0 26,500 0 0 67 95,000 19,000 98,000 9,000 6,000 0 0 0 68 53,390 29,125 53,390 29,125 0 0 0 0 70 114,000 0 0 0 0 0 118,000 0 71 0 114,000 3,000 111,000 0 0 0 0 72 30,000 84,000 38,640 36,360 39,000 0 0 0 73 66,000 48,000 108,000 0 6,000 0 0 0 74 76,500 37,500 114,000 0 0 0 0 0 75 2,649,6503,073,342 2,871,011 1,203,580 333,320 136,700 210,000 734,000 DISTRICT LOT 185 1 59,063 127,389 52,734 104,639 0 0 0 13,833 2 70,928 199,068 123,800 464,000 77,360 0 15,246 7,265 3 A 100,718 52,272 131,210 17,424 4,356 0 0 0 15 16 28,936 160,982 66,254 85,200 38,464 0 0 0 17 47,916 126,324 52,272 56,628 43,560 21,780 0 0 18 81,372 165,436 158,830 47,916 10, 362 0 11,200 29,700 19 8,515 74,146 69,642 4,323 8,646 0 0 0 3,047,0983,978,9593,525,753 1,566,110 216,068 158,482 47,446 124,198 Source: Compiled by Researcher 139 TABLE XXIII LAND AREA : LENGTH OF OWNERSHIP square f e e t Block D i s t r i c t 0-5 years 6 - 10 years 11 - 20 years Over 20 No Lot Land Area * Land Area * Land Area* Years* Land Area 8 541 15,600 19,200 9 541 4,025 0 0 13,880 10 541 0 5,500 0 32,350 11 541 8,000 26,450 6,000 52,105 12 541 3,120 6,120 0 52,680 13 541 0 0 0 64,400 14 541 6,240 0 20,000 36,000 15 541 0 0 0 64,400 16 541 22,692 24,000 0 70,600 20 541 6,000 35,800 6,000 12,200 21 541 • 3,120 3,120 18,720 36,960 22 541 18,120 12,120 13,890 30,390 23 541 32,800 0 0 31,200 24 541 11,000 9,000 15,000 29,000 25 541 0 2,340 0 61,660 26 541 11,620 0 3,900 46,280 30 541 29,520 3,000 28,740 49,560 31 541 42,600 14,040 10,800 43,120 32 541 55,695 6,000 24,006 21,000 33 541 24,000 6,000 9,000 69,680 34 541 24,360 19,260 0 65,580 35 541 37,480 42,240 12,480 18,000 36 541 34,920 18,240 3,000 53,520 37 541 0 0 0 118,300 38 541 45,000 12,000 6,000 72,000 40 541 28,440 17,280 21,000 51,400 41 541 51,000 0 30,000 39,000 42 541 44,760 18,000 12,000 43,560 43 541 3,000 12,000 6,000 99,000 44 541 31,500 0 0 88,500 45 541 84,000 0 6,000 30,000 46 541 0 0 130,000 47 541 0 0 0 130,000 48 541 0 0 0 130,000 50 541 24,000 0 0 94,500 51 541 0 0 0 130,000 52 541 0 0 0 130,000 53 541 54,000 6,000 9,000 51,000 54 541 0 0 0 120,000 55 541 27,000 0 17,280 15,840 56 541 24,000 21,960 12,000 62,040 57 541 69,000 4,440 46,560 0 58 541 3,000 18,000 24,000 51,000 140 TABLEXIII (continued) Block D i s t r i c t 0 - 5 years 6 - 1 0 years 11 - 20 years Over 20 No. Lot Land Area Land Area Land Area Years Land Area 60 541 48,240 33,120 7,320 31,320 61 541 120,000 0 0 0 62 541 31,000 6,000 6,600 76,200 63 541 3,000 0 9,000 108,000 64 541 11,960 0 22,000 86,000 65 541 45,000 15,000 3,000 57,000 66 541 39,000 6,000 19,000 50,000 67 541 39,000 21,000 0 54,000 68 541 22,000 6,750 16,100 37,665 70 541 0 0 0 114,000 71 541 0 0 0 114,000 72 541 30,000 0 6,000 78,000 73 541 9,000 27,000 0 78,000 74 541 36,000 42,000 0 21,000 1 185 12,705 11,220 37,785 135,960 2 185 137,116 42,675 41,688 47,811 3 185 92,798 0 0 60,192 16 185 63,624 75,974 0 50,320 17 185 39,204 26,136 43,560 65,340 18 185 75,702 95,832 30,092 45,182 19 185 30,130 0 14,410 38,121 Source: Field Survey - See Land Use Study Appendix A TABLE XXIV VACANT LAND - LENGTH OF OWNERSHIP Block 0-5 years 6-10 years 10 - 20 years Over 20 ; No. s q / f t s q / f t s q / f t s q / f t DISTRICT LOT 541 15 0 0 6,000 0 16 0 0 12,000 12,000 20 0 0 3,120 0 23 0 0 6,000 12,720 24 0 6,240 0 0 31 3,000 0 0 0 32 15,000 0 0 0 33 3,000 0 0 0 34 0 0 0 18,000 35 3,000 27,000 6,240 0 36 30,000 3,000 0 9,000 38 9,000 9,000 0 63,000 40 0 0 0 12,960 41 15,000 0 0 9,000 42 0 3,000 0 9,000 44 12,000 0 0 0 45 33,000 0 0 0 46 Under construction 53 21,000 0 0 0 55 6,000 0 14,280 19,560 56 12,000 12,000 21,000 0 57 50,000 4,440 46,560 0 58 21,000 36,000 0 21,000 60 21,360 4,560 9,600 12,000 61 114,000 0 0 0 62 6,000 0 0 12,000 63 4,500 0 15,000 42,000 65 0 0 0 27,000 66 18,000 6,000 9,000 23,000 70 0 0 57,600 0 71 0 0 0 96,000 72 6,000 0 0 12,000 74 12,000 0 0 0 75 6,000 6,000 6,000 0 TOTAL DISTRICT LOT 541 399,920 DISTRICT LOT 185 1 0 0 0 11,834 2 51,081 41,712 23,253 7,556, 3 4,356 0 0 3,564 4 34,977 0 0 0 5 20,000 40,000 0 20,000 142 TABLE XXIV (continued) Block 0 - 5 years 6 - 1 0 years 10 - 20 years Over 20 years No. sq/ft sq/ft sq/ft sq/ft DISTRICT LOT 185 15 17,424 0 8,646 0 16 151,148 32,736 0 17,424 17 16,000 26,100 17,400 0 18 13,068 34,848 4,356 0 Source: Field Research by Writer 143 Use C l a s s i f i c a t i o n Systems Planners and Urban Land Economists a l i k e have discussed the pros and cons of land use c l a s s i f i c a t i o n systems 69 f o r years. I t i s not w i t h i n the scope of this paper to c r i t i c i z e or elaborate on the various systems, rather to employ one that w i l l provide the information required to describe Downtown Vancouver. The researcher recognizes that land use can be c l a s s i f i e d under d i f f e r e n t aspects or dimensions. Each c l a s s i f i c a t i o n w i l l y i e l d d i f f e r e n t q u a n t i t a t i v e and s p a t i a l patterns of d i s t r i b u t i o n . The C l a s s i f i c a t i o n employed i n this paper f u l f i l l s the basic requirement of i n t e r n a l consistency and has the f l e x i b i l i t y to expand to include new phenomen. Land Use Inventory 7^ The C e n t r a l Business D i s t r i c t i s the s o c i a l hub of the c i t y with business, administrative, commercial and c u l t u r a l development predominating. The area also houses a number of other land uses a n c i l l a r y to the predominant uses, forming a residue of the o r i g i n a l settlement which through a process of e v o l u t i o n has been transformed from a s e l f contained community to the c e n t r a l core of a large metropolitan area. General areas of land use are shown on the map page 51 while the l a s t e x h i b i t i n d i c a t e s more s p e c i f i c areas of land use. (2) R e t a i l C e n t r e s 7 1 There are 3,229,050 square f e e t of b u i l d i n g area dedicated to r e t a i l uses. This approximately 14,57. of the t o t a l b u i l d i n g area w i t h i n the study boundaries. Since 1964 there has been 69 Hans Blumenfeld. The Modern Metropolis (Cambridge Massachusetts I n s t i t u t e of Technology, 1967 ) pp. 292-300 7 ^ F i g u r e X i l l u s t r a t e s land use areas Table XXXV Appendix A o u t l i n e s the types of r e t a i l a c t i v i t y and square footage occupied by each. 144 TABLE XXV LOCATION AND SIZE OF SELECTED COMMERCIAL CENTRES - METROPOLITAN VANCOUVER LOCATION  Vancouver West End Point Grey Dunbar K i t s i l a n o K e r r i s d a l e Cambie Oakridge Marpole Mt. Pleasant Sunset Grandview Hastings Renfrew Kingsway Fraserview BURNABY NEW WESTMINSTER COQUITLAM PORT COQUITLAM PORT MOODY WEST VANCOUVER NORTH VANCOUVER CITY NORTH VANCOUVER DISTRICT RICHMOND DELTA SURREY wha Hey G u i l d f o r d Newton COMMERCIAL FLOOR SPACE sq. f t . 294,681 211,992 340,359 1,453,040 422,805 1,576,713 576,061 435,064 1,897,770 770,531 574,755 531,889 311,321 515,429 437,489 1,951,859 2,105,671 333,535 307,777 86,087 915,343 989,000 626,303 1,136,721 470,259 716,340 508,639 199,848 TABLE XXV (continued Cloverdale 158,190 Sunnyside 120,406 WHITE ROCK 268,600 To t a l (excluding Downtown Vancouver) 21,245,377 Source: Greater Vancouver Regional D i s t r i c t Planning Department COMMERCIAL FLOOR SPACE, February 1970 146 an increase of 17,000 squate feet in r e t a i l space. This is an increase of only .67. as compared to a 297. increase in total building area in the study area. There are three r e t a i l sub centres i n the study area: (1) Granville Street Axis - located between Hastings Street and Nelson Street and expanding to include Howe and Seymour Streets between Georgia and Hastings Streets. The Hudson's Bay Co. Department Store provides the mainstay of the area. This area w i l l become the primary r e t a i l area when Eaton's moves to i t s new store i n Block 52. (2) Hastings Street Axis - located between Granville and Cambie Streets. The area consists of a series of specialty r e t a i l shops depending upon pedestrian t r a f f i c generated by Eaton's and Woodward's Department Stores. (3) Robson Strausse - located on Robson Street between Burrard Street. The area consists of a series of small r e t a i l specialty shops with a European flavour. (b) Office Centres Office space is comprised of general office, government office, finance, transportation, u t i l i t i e s , communication, business services, and manufacturer's agents, as l i s t e d i n Exhibit and accounts for 11,061,996 square feet of building space. Building space has increased by 2,376,599 square feet approximately 277. over the 1964 figure. By eliminating increases associated with vacant space and parking structures then approximately two-thirds of the new space since 1964 has been office space. Exhibit indicates that some types of office space have increased at a faster rate than others. There are three distinct office sub-centres within the study area. (1) Established core - located on Hastings Street and Pender Streets between Burrard and Seymour Streets. 147 (2) Newer high density b u i l d i n g s - located west of Burrard S t r e e t with the buil d i n g s f r o n t i n g on Georgia, Hastings, and Burrard Streets and extending as f a r west as Bute Street. Another area of high density o f f i c e b u i l d i n g s i s springing up i n the area bounded by Robson, G r a n v i l l e Dunsmuir and Howe Streets. (3) Medium density o f f i c e b u i l d i n g s - located west of Thurlow Street i n an area bounded by Georgia, Cardero, Hastings and Thurlow Str e e t s . Medium density o f f i c e b u i l d i n g s up to 10 years of age with a s i t e coverage of f i v e times, f r o n t on Hastings, Georgia and Pender S t r e e t s . Most of the new buil d i n g s i n th i s category are located on secondary s t r e e t s such as Bute and M e l v i l l e S t r e e t s . (c) I n d u s t r i a l , Wholesale and Warehouse Centres These uses account f o r 8.47. of b u i l d i n g space i n the study area. In 1964 these uses accounted f o r 9.57. of the b u i l d i n g area. In the f i v e years from 1964-1969 there has been an increase of 232,948 square f e e t , approximately 147. over the 1964 f i g u r e , w e l l below the average growth of 297. f o r the t o t a l study area. In 1954 a report prepared by the C i t y Planning Department indic a t e d that the greatest amount of space i n downtown Vancouver was 72 devoted to warehousing. The 1969 f i g u r e s show that t h i s s i t u a t i o n has changed d r a s t i c a l l y . The C i t y Planning Department now reports that trends measured over the past ten or f i f t e e n years, and now a c c e l e r a t i n g , i n d i c a t e that industry w i l l diminish i n the Downtown peninsula and the nature C i t y Planning Department: "Downtown Vancouver 1955-1972, 20 Year Development Plan." Unpublished report, 1955. 148 of the industry w i l l be service ( t e r t i a r y ) rather than productive 73 manufacturing. These uses are located i n three areas throughout the study area. (1) the area bounded by Cordova, Cambie and the waterfront, c o n s i s t i n g of pre-1900 multi-storey buildings most of which are s t i l l s t r u c t u r a l l y sound. (2) The area bounded by Seymour, Robson, Homer and Nelson Streets comprised of two storey modern type warehouse b u i l d i n g s with adjacent vacant land f o r parking and expansion purposes. (3) The area bounded by Hamilton, Robson, Beatty and Smithe Streets adjacent to the above warehouse area, and c o n s i s t i n g of m u l t i -storey b u i l d i n g s of the nature found i n the waterfront area. (d) Hotel-Mo t e l This type of use accounts f o r 11.67. of the t o t a l b u i l d i n g area, a decrease from the 14.67. f i g u r e i n 1964. Since 1964 there has been no increase i n h o t e l space i n the study area, however, three major developments w i l l approximately 1,000,000 square f e e t w i t h i n the next two years. This represents approximately a 407. increase i n terms of b u i l d i n g area. In the l a s t s i x years, major construction of h o t e l s has been out of the core; west on Robson Street, Georgia Street and Davie Street and south on Howe Street. There has a l s o been a number of apartment conversions to a use c a l l e d the apartment h o t e l . Most of these are along Robson Street out of the study area. (e) Public Area This i s a f i v e block area bounded by Homer, Robson, Cambie, Georgia, Beatty, Pender, Hamilton and Dunsmuir Streets. The area contains the post o f f i c e , the Queen E l i z a b e t h Theatre, the 73 C i t y Planning Department: "Downtown Vancouver, Development Concepts", pp. 5-6. 149 Vocational I n s t i t u t e , the Bus Depot, a Catholic Church, and the future s i t e f o r CBC t e l e v i s i o n , and a block of vacant land being assembled by the C i t y of Vancouver. ( f ) Educational and C u l t u r a l Centres Most of the structures housing these uses are located i n or near the public areas mentioned above. These uses have decreased from 4.97. of the t o t a l area i n 1964 to 4.27. i n 1969. (g) Automobile Sales and Service These uses are scattered throughout the study area and account f o r 1.87. of the t o t a l b u i l d i n g area as compared to 2.17. i n 1964. (h) Parking Structures Parking structures account f o r 127. of the t o t a l b u i l d i n g area as compared to 10.47. i n 1964. Since 1964 there has been an increase of 872,165 square f e e t which i s 487. above the 1964 f i g u r e . ( i ) Vacant Space Vacant space has almost doubled since 1964. The vacancy rate f o r the t o t a l study area i s 57.. In 1964 the vacancy rate was 3.77.. Table XXI shows a block by block breakdown of vacancy 74 s t a t i s t i c s . A recent survey of o f f i c e b u i l d i n g s on the market i n the l a s t f i v e years reveals a very low vacancy rate of 17. i n d i c a t i n g that most of the vacant space i s located i n older b u i l d i n g s . Some general trends i n b u i l d i n g use are e a s i l y discernable from the above dis c u s s i o n . There has been 17,000 square f e e t of r e t a i l 74 B u i l d i n g Owners and Managers A s s o c i a t i o n - Vancouver . Study done and published i n 1970. 150 space constructed w i t h i n the study area since 1964. However over 2,000,000 square f e e t of r e t a i l space has been developed i n r e g i o n a l suburban shopping centres i n the Vancouver Metropolitan a r e a . 7 ^ This increase i s due p r i m a r i l y to large population growth i n the suburbs, and heavy t r a f f i c congestion i n the study area. In s p i t e of t h i s the Planning Department estimates that r e t a i l spending i n the CBD w i l l nearly t r i p l e by 1985 due to increasing downtown population. Commercial o f f i c e space has been by f a r the most extensive type of development i n the past f i v e years. There i s a trend toward the l o c a t i o n of head or branch o f f i c e s of large corporate structures (both public and private) by which major sections of the economic system outside the area are controlled.Vancouver i s r a p i d l y becoming an executive c i t y on the P a c i f i c rim. O f f i c e b u i l d i n g trends and uses are discussed more s p e c i f i c a l l y i n the next s e c t i o n e n t i t l e d "Vancouver Development Trends." For a d e t a i l e d breakdown of r e t a i l space i n the study area see Table XXXV. 76 These shopping centres are: Park Royal, West Vancouver; Capilano M a l l , North Vancouver; Lougheed M a l l , Burnaby; G u i l d f o r d Town Centre, Surrey; Wahlley Town Centre (K Mart) Surrey; Richmond Town Centre, Richmond; Oakridge Centre, South Vancouver; Simpson's Sear, Burnaby. These shopping centres o f f e r a t l e a s t one major department store as w e l l as a f u l l complement of s p e c i a l t y shops. For a d e t a i l e d breakdown see Table XXV. 151 TABLE XXVI BUILDING USE CLASSIFICATION Breakdown of Area Square Feet?? D.L. 541 D.L. 185 O.G.T. A. COMPARISON SHOPPING STORES General Merchandise Stores Department Stores 1,032,176 0 738,590 General Dry Goods 3,415 1,874 11,760 V a r i e t y Stores 0 0 0 Apparel Stores Ladies and/or Childrens Wear 157,227 8,804 79,471 Men's Wear 75,606 1,340 17,618 General Shoe Stores 36,541 294 43,000 Ladies or Childrens Shoes 40,573 1,468 69,160 Men's Shoes 2,420 0 830 Fab r i c Shops and M i l i n a r y Houses 15,761 1,204 0 Miscellaneous R e t a i l Outlets ( f u r r i e r s etc) 13,188 2,160 0 Furniture and Appliance Stores Furniture Stores and Appliance Outlets 113,213 3,450 1,850 Music Stores 38,941 0 0 Miscellaneous (home f u r n i s h i n g s , antiques, i n t e r i o r decorations etc) 43,831 0 100,561 Other Comparison Stores Jewellery Stores 60,832 2,362 5,447 Camera and A r t Stores (hobby) 13,811 3,544 4,818 Sporting Goods Stores 25,724 1,933 13,196 B i c y c l e Stores and S p e c i a l t y Auto Sales 1,200 0 2,879 Luggage and Leather Goods Stores 8,187 0 0 O p t i c a l Goods Stores 24,120 780 3,500 Watch and Jewellery Repairs 6,540 0 0 Other 7,029 192 722 ERVICE RETAIL Personal Services Barber, Beauty Shop, Reducing Salons 74,608 15,337 12,783 Cafe 213,459 86,603 .61,544 Photographic Studios 12,970 0 3,952 Shoe Repair, Shoe-Shine Shops 5,100 3,546 0 Key Making, Locksmitsh 0 0 0 Cleaning, Pressing, Drying, Garment Repair, T a i l o r 91,772 6,284 14,015 Costume and Dresswear Rental 14,909 0 244 Other 0 0 0 152 TABLE XXVI (continued) Repair Services (excluding auto) S p e c i a l t y Repair Stores Watch and Jewellery Repairs E l e c t r i c Repairs Miscellaneous Repair Shops Transportation Services Travel Agencies Tick e t O f f i c e s ( r a i l , a i r and sea) Taxi Services T r a n s i t Authority Car Rentals Co CONVENIENCE SHOPPING STORES Food Stores Food Stores Candy Stores Bakeries Hardware Stores Hardware Lumber and B u i l d i n g M a t e r i a l s Stores Plumbing E l e c t r i c a l Sales (not appliances) Miscellaneous Machinery & Appliances Drug Stores Other Convenience Stores Stationery Stores Book Stores F l o r i s t s News Dealers, Newsstands & Tobacconists G i f t , Novelty and Souvenirs Pet Shops, Hatcheries Other D. OTHER CONSUMER GOODS STORES li q u o r Stores 9,000 0 0 Second Hand Stores 7,936 1,475 13,951 Pawn Shops 6,417 0 9,225 O f f i c e Machine and Equipment Stores 71,973 0 0 Auto Services and Gasoline 34,700 8,520 59,000 Auto Sales 183,989 107,810 0 i.L. 541 D.L. 185 O.G.T. 1,684 0 12,70( 1,795 210 0 0 950 0 0 0 0 21,963 2,487 0 14,417 17,488 0 0 500 0 44,782 13,062 0 1,300 8,563 0 36,559 51,450 20,525 1,760 0 1,050 8,513 10,800 0 1,699 1,750 0 7,609 1,500 0 8,000 3,800 10,036 0 6,080 0 0 10,466 27,226 2,988 9,225 4,290 0 0 29,699 3,218 2,050 6,295 828 0 15,053 7,132 175 51,653 18,598 550 2,916 486 0 858 0 0 [J TABLE XXVI (continued) D.L. 541 D.L. 185 O.G.T. E. OFFICE SPACE Pr o f e s s i o n a l Services Legal - Private 241,430 105,300 3,200 Medical Practioners or C l i n i c s 62,225 1,800 0 Dentists and Labs 47,776 4,941 1,300 Engineering O f f i c e s and Labs 92,800 86,561 51,000 Accounting Services 78,600 81,970 6,945 Ar c h i t e c t u r e Firms 35,873 23,100 5,460 Other Lab Analysis 26,900 958 250 Economics, Marketing Consultants 12,669 30,970 7,600 Optometrists 19,400 0 0 Business Services General Accounting Services, Bookeeping 8,700 0 12,200 Data Processing 58,277 60,951 38,213 A d v e r t i s i n g and Pub l i c Relations 76,160 40,175 8,350 Pri v a t e Employment Agencies 12,233 0 0 Dupli c a t i o n , B l u e p r i n t i n g and Addressing Services 66,697 8,968 6,200 Stenographic Services 14,923 920 0 Telephone Answering Service 6,700 0 0 Other Business Services 52,653 0 13,100 I n d u s t r i a l Development O f f i c e s P r o f e s s i o n a l Services Commercial Colleges 5,966 0 0 Dancing Schools 13,164 0 0 Other Schools - P r i v a t e 20,150 0 1,900 Language Schools 5,390 0 0 Technical Schools 24,100 0 0 Publ i c Services Information Centres and T o u r i s t Bureaus 10,050 0 0 Municipal H a l l s and O f f i c e s 1,000 0 0 P r o v i n c i a l O f f i c e s 143,220 15,200 9,500 Federal O f f i c e s 1,172,880 412,750 0 Other Public O f f i c e s (Commissions etc) 24,280 0 0 Churches and Church H a l l s or Organi-zations 155,660 16,000 1,400 Embassies, Trade Commissions 27,330 10,000 500 Real Estate, Finance and Insurance Real Estate O f f i c e s 64,643 92,100 700 Land Development O f f i c e s 27,836 12,000 0 Insurance O f f i c e s 227,486 175,000 59,500 Mortgage O f f i c e s 27,943 7,900 500 Trust and Loan O f f i c e s 196,000 23,100 2,877 Investment, Bond and Stockholders 213,396 50,089 18,347 Banks 355,453 50,500 16,870 Construction O f f i c e s 10,360 12,479 5,563 Other 37,280 53,800 4,057 154 TABLE XXVI (continued) E. OFFICE SPACE Service Organizations, P r o f e s s i o n a l S o c i e t i e s , Unions, e t c .  Labour Unions P r o f e s s i o n a l S o c i e t i e s Trade S o c i e t i e s Other s o c i e t i e s O f f i c e O f f i c e Types Manufacturers Agents (No Stock on Premises) Firm Representatives I n d u s t r i a l Location Services B.C. Hydro Mining Lumber - Log Brokerage O i l Companies Chemicals Import - Export Brokers Communication and Transportation Telecommunications Telephone Broadcasting Railway A i r F. CULTURAL AND ENTERTAINMENT FACILITIES P u b l i c Night Clubs and Cabarets Gymnasia Bowling A l l e y s B i l l i a r d Parlours Motion Picture Theatres Legitimate Stage Theatres Concert Hal l s and A u d i t o r i a L i b r a r i e s A r t G a l l e r i e s and other P r i v a t e P r i v a t e Clubs Service Clubs F r a t e r n a l Organizations D.L. 541 D.L. 185 O.G.I 10,488 2,733 3,345 27,735 4,654 5,978 2,416 0 2,476 20,559 38,889 8,330 286,420 3,605 50,000 15,112 74,469 11,500 28,712 0 0 414,649 0 0 118,412 136,200 9,950 32,850 351,890 47,170 2,545 107,856 48,265 3,610 14,686 0 56,550 193,900 2,574 26,871 39,366 0 339,542 50,000 0 7,951 1,442 19,664 13,230 61,000 0 0 25,000 0 151,267 22,214 16,000 7,000 0 0 38,000 0 0 23,850 0 2,60( 146,800 6,000 0 106,477 0 0 30 ,139 0 0 169,580 0 0 17,905 20,955 2,300 86,000 17,800 0 15,500 0 0 12,300 0 0 TABLE XXVI (continued) 155 D.L. 541 D.L. 185 O.G.T. H. POLICE, FIRE AND OTHER SPECIAL PUBLIC SERVICES P o l i c e Stations 0 F i r e Stations 25,000 Law Courts or Magistrates Courts 35,000 Detention Homes 0 M i l i t a r y Establishments 0 I. TOURIST AND VISITOR SERVICES Hotels 2,554,000 Motels 0 YMCA YWCA 0 T o u r i s t Apartments 0 J. RESIDENTIAL Single Family R e s i d e n t i a l 1,500 Rooming House Converted Single Family 39,000 Combination Apartment Hotel Rooming House 76,400 Apartment 47,800 Rooms - above r e t a i l 113,400 Hostel 50,400 K. INDUSTRIAL Wholesale Warehouse 40,837 Storage Warehouse 151,900 Li g h t I n d u s t r i a l B u i l d i n g 525,366 L. PARKING FACILITIES 0 0 0 0 0 0 12,000 0 70,000 0 9,430 47,300 0 0 0 0 8,600 2,000 0 0 0 0 0 0 0 0 0 0 0 27,500 3,600 6,500 0 166,573 302,216 62,800 Public F a c i l i t i e s P r i v a t e F a c i l i t i e s 77,400 1,593,800 0 614,466 0 416,000 Source: Primary research by w r i t e r Note 77. O.G.T. i s the old G r a n v i l l e Townsite as ou t l i n e d i n red on Figure II 156 Land Use Inventory The Central Business D i s t r i c t i s the s o c i a l hub of the c i t y with business, administrative, commercial and c u l t u r a l development predominating. The area a l s o contains a number of other land uses a n c i l l a r y to the main uses, forming a residue of the o r i g i n a l settlement which through a process of evolution has been transformed from a s e l f contained community to the c e n t r a l area of a large metro-p o l i t a n area. There are several d i s t i n c t areas of land use i n the C.B.D. (a) R e t a i l Section (1) G r a n v i l l e S t r e e t Axis - Located between Hastings and Nelson S t r e e t s . The axis expands to include Howe and Seymour Streets between Georgia and Hastings. The Hudson's Bay Store, located on the northeast corner of Georgia and G r a n v i l l e Streets i s the mainstay of the area. The area w i l l become the primary r e t a i l area i n the C.B.D. when Eaton's Department Store moves i n t o i t s new store across from the Bay. (2) Hastings Street Axis - Located between G r a n v i l l e and Cambie Stre e t s . The area c o n s i s t s of a s e r i e s of s p e c i a l t y r e t a i l shops r e l y i n g on pedestrian t r a f f i c generated by Eatons and Woodward's Department Stores. (3) Robson Strausse - located on Robson St r e e t between Burrard and Bute. The area c o n s i s t s of a s e r i e s of small r e t a i l s p e c i a l t y shops with a European fla v o u r . (b) High Density O f f i c e . (1) E s t a b l i s h e d Core - located on Hastings and Pender Streets between Burrard and Seymour S t r e e t s . (2) Newer High Density Buildings - (a) One 157 area located west of Burrard with b u i l d i n g s f r o n t i n g on Burrard, Hastings and Georgia Streets as f a r west as Bute. (b) The other area consists of Blocks 42 - 52 and i s bounded by Howe, Robson, G r a n v i l l e and Dunsmuir Streets. (c) Medium Density O f f i c e . Located west of Thurlow Street i n an area bounded by Georgia, Cardero, Hastings and Thurlow. Medium density o f f i c e b u i l d i n g s up to 10 years o l d with a s i t e coverage of f i v e , f r o n t on Hastings Street, Georgia Street and Pender Street. Most of the new buil d i n g s i n th i s category are located on secondary st r e e t s such as Bute Str e e t and M e l v i l l e S t r eet. (d) L i g h t I n d u s t r i a l and Wholesaling. (1) Area bounded by Cordova and Cambie Streets and the waterfront, c o n s i s t i n g of pre-1900 m u l t i storey b u i l d i n g s s t i l l s t r u c t u r a l l y sound. (2) Area bounded by Seymour, Robson, Homer, and Nelson Streets c o n s i s t i n g of two storey modern type warehouses with adjacent vacant land spaces f o r parking and expansion purposes. (3) Area bounded by Hamilton, Robson, Beatty and Smithe Streets adjacent to the above warehouse area, and c o n s i s t i n g of multi-storey b u i l d i n g s of the nature found i n the waterfront area. (e) P u b l i c Areas This i s a f i v e block "area bounded by Homer, Robson, Cambie, Georgia and Beatty, Pender, Hamilton and Dunsmuir St r e e t s . The area contains the post o f f i c e , the Queen E l i z a b e t h Theatre, the Vocational I n s t i t u t e , the Bus Depot, a Ca t h o l i c Church, and the future s i t e f o r CBC t e l e v i s i o n , and a block of vacant land being assembled by the C i t y of Vancouver. ( f ) Hotel An area f r o n t i n g on Georgia, between Howe and Burrard S t r e e t s . In the l a s t f i v e years major construction has been out south on Howe 158 and west on Robson. Recently announced plans c a l l f o r development of hotels on Burrard Street w i t h i n the core of the c i t y . TABLE XXVII BUILDING USE INVENTORY 1964 (L. Smith & Co. ) Versus 1969 1969 % of T o t a l Increase % Use 1969 * D.L. 541 1969 * D.L.185 1969 V f Remainder Tot a l * Study Area 1969 Area 1969 Over 1964 Inc: O f f i c e Space- R e t a i l 1,436,148 1,540,913 334,391 3 400,456 15.3 330,456 10, Govt't Space 1,368,719 306,847 10,847 1,585,603 7.5 951,603 150, T o t a l O f f i c e Finance (Bank etc) 579,480 84,173 21,694 705,347 3.1 160,000 29 Transportation, U t i l i t i e s & communication 863,824 215,145 35,468 1,179,437 5.3 126,437 12 Business Service 321,156 159,014 78,299 568,469 2.5 514,469 953 Personal & S o c i a l Services 221,327 30,000 93,256 312,577 1.4 132,000 25 Entertainment, Eating & Drinking 701,552 167,000 12,590 781,142 .4 187,112 31 Hotel - Motel 2,559,000 2,559,000 11.6 Educational, C u l t u r a l I n s t i t i o n a l 6c Public 862,149 80,498 33,493 940,740 4.2 114,740 13 Automobile Sales and Service 218,689 116,330 59,029 394,048 1.8 51,048 7 Wholesaling & Ware-housing 845,309 89,605 776,820 1,716,634 338,634 Manufacturing 525,366 2,004 64,878 588,248 2.6 315,248 115 R e s i d e n t i a l 217,000 1 75,000 Parking 1,621,687 614,466 416,012 2,662,165 12 872,165 43 Vacant Space 674,823 180,758 352,451 1,208,032 5 589,542 100 12,813,729 3,586,753 2,288,418 18,818,898 4,434,825 vO 160 TABLE XXVIII OFFICE USE INVENTORY * square : * * D.L. 541 D.L. 185 O.G.T. Total 7. of ' Shipping Agents 11,952 9,830 1,070 22,852 6.07. Legal - Private 241,430 127,305 368,735 9.27. Medical 62,225 1,800 64,000 1.67. Dentists & Lab 47,776 4,941 52,717 1.37. Engineering Offices & Lab 92,804 86,561 113,300 292,665 7.37. Accounting Services 78,617 81,971 6,945 167,533 4.27. Architectural Firms 25,373 33,566 5,460 64,399 1.67. Other Labs 27,676 958 246 28,880 .77. Economics Marketing 12,669 30,970 7,620 51,259 1.37. Optometrists 19,401 401 19,801 .57. Real Estate 64,643 32,095 680 97,418 2.47. Land Development Co 47,836 12,000 12,000 71,836 1.87. Insurance Offices 227,486 175,016 59,481 461,983 11.67. Finance 589,480 94,173 21,694 705,347 17.67. Investment, Brokerage 213,396 50,089 18,437 281,922 7.07. Construction Offices 15,361 17,479 5,563 38,403 1.07. Mining 118,412 136,350 9,825 264,587 6.67. Lumber 32,848 361,897 47,170 441,815 11.07. O i l 12,545 137,856 48,265 198,666 5.07. Chemical 3,610 14,680 18,290 .57. Import-Export 56,548 164,258 2,574 223,380 55.57. Other 37,280 20,916 4,057 62,253 1.77. Total 2,039,368 1,594,711 364,758 3,998,837 100.07. feet Total 161 TABLE XXIX RETAIL INVENTORY CBD STUDY AREA (Square Feet) GENERAL MERCHANDISE 1,050,000 0 1,025,000 2,075,000 Department Stores General Dry Goods Variety Stores APPAREL STORES 301,316 28,000 132,467 461,783 Ladies Wear Children's Wear General Shoe Stores Ladies & Children "hoes Men's Shoes Fabric Shops-Millinery Miscellaneous FURNITURE 6c APPLIANCE OUTLETS150,000 0 95,000 145,000 Furniture Stores 6c Appliance Miscellaneous (home furnishings antiques, interior decor) OTHER COMPARISON STORES 127,443 8,811 30,841 167,095 Jewllery Stores Music Stores Camera and Art Stores Sporting Goods Bicycle Stores Luggage & Leather Goods Optical Goods CONVENIENCE GOODS 10,000 51,450 20,521 71,971 Good Stores Hardware Lumber 6c Bldg Supplies Hardware Plumbing E l e c t r i c a l Sales DRUG STORES 27,226 2,988 9,200 39,414 OTHER CONVENIENCE STORES 80,728 30,212 713 111,653 Stationery Book Stores Flo r i s t s News Dealers Gifts, Novelty Pet Shops Other OTHER CONSUMER GOODS 40,726 1,475 25,000 67,200 Liquor Second Hand Source: Primary research Pawn Shops b y t h e W r i t e r Agricultural Supply Other TOTAL RETAIL VACANCY RATE - VANCOUVER %C f Vacant: Source: BOMA - Vancouver FIGURE X to 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 VACANCY RATE - VANCOUVER • Air Conditioned Average Number of Buildings Reporting (7) •Won Air Conditioned Average Number of Buildings Reporting (18) 1 J | • • ' I I I ' . ' » ! ' « > * t • I I 1 I I , . A \ \ ource: B.O.M.A. - Vancouver FIGURE XI APPENDIX B 164 THE LOWER MAINLAND - BRITISH COLUMBIA ECONOMY INTRODUCTION Development opportunities during the next decade w i l l evolve as a d i r e c t f unction of economic a c t i v i t y and r e l a t e d population growth aspects. Therefore f o r purposes of the following examination of downtown Vancouver o f f i c e market p o t e n t i a l i t i s appropriate to renew c e r t a i n c h a r a c t e r i s t i c s of the economic base. A thorough study of the economic base of the Metropolitan Area would be very time consuming and complicated. The Lower Mainland economy i s very complex and r e l a t e d with the remainder of the B.C. economy, the Canadian economy and the i n t e r n a t i o n a l economy. The following chapter i s not an economic base study proper, rather a review of the major economic components to determine the nature and d i r e c t i o n of the economy. The Greater Vancouver Regional D i s t r i c t d i s t i n g u i s h e s three economic sectors: primary industry, secondary industry and t e r t i a r y industry. PRIMARY INDUSTRY The primary industry consists of a g r i c u l t u r e , f o r e s t r y , f i s h i n g and mining and are involved i n the e x t r a c t i o n and production of a g r i c u l t u r a l products and raw ma t e r i a l s . A g r i c u l t u r e - A g r i c u l t u r a l output i n B r i t i s h Columbia has increase 667. since 1949, l a r g e l y r e f l e c t i n g expanding markets. This output however accounts f o r only 47. of Canada's output. 165 A g r i c u l t u r e i n the Lower Mainland supports d i r e c t l y or i n d i r e c t l y 157. of a l l jobs. I t i s a n t i c i p a t e d that a g r i c u l t u r a l output w i l l increase due to a r a p i d l y expanding l o c a l market; however the number of jobs may not increase proportionately due to better farming methods. The Greater Vancouver Regional D i s t r i c t estimates that t o t a l manufacturing employment i n the Lower Mainland w i l l s t a b i l i z e near 207. of the t o t a l labour f o r c e . While gains i n the proportion of the labour force engaged i n goods producing i n d u s t r i e s are not i n prospect, increased employment i n the t e r t i a r y or service industry i s expected throughout the economy. The Lower Mainland hasmoved i n t o the post i n d u s t r i a l phase of economic and s o c i a l development. In t h i s phase the s e r v i c e sector i s the dominant employer. Table XXXII shows the increasing s i g n i f i c a n c e of employment i n the service sector. Forestry The f o r e s t i n d u s t r i e s have always been the backbone of B r i t i s h Columbia's economy and today they employ over 117. of the Province's labour f o r c e . B r i t i s h Columbia produces 707. of Canada's lumber, 827.-of i t s plywood, 257. of i t s pulp and 147. of i t s paper and paper board, most of which i s exported. Three quarters of the Provinces lumber, one-quarter of i t s plywood, over one-half of i t s pulp and nearly 807. of i t s pulp and paper board i s sold i n other countries. The major markets are the United States, United Kingdom, Japan and the European Common Market i n that order. 166 The logging and f o r e s t service industry employs approximately 2,500 people i n the Lower Mainland. I t i s expected that the work force necessary to log areas i n the Lower Mainland w i l l decline over the next ten years. Mining The B r i t i s h Columbia mining industry has experienced recent rapid growth. Since 1960 the annual value of mineral production has almost trebled reaching an estimated $460,000,000 i n 1969. Japan continues to be a major market f o r B.C. minerals along with the United States, the United Kingdom and the Common Market. In the Lower Mainland, mining accounts f o r only a small proportion of B.C.'s production with only two operating mines. However, the mining industry i s important to the Lower Mainland area because of the a n c i l l a r y i n d u s t r i e s such as the s e r v i c i n g and importing of mining equipment and the p r o v i s i o n of t e c h n i c a l and p r o f e s s i o n a l personnel f o r which Vancouver has become the centre. Vancouver o f f i c e b u i l d i n g s house many of the executive o f f i c e s f o r the mining industry. There i s also a mining market and port benefits from the shipment of minerals. F i s h i n g One-third of Canadian f i s h production i s consumed domestically, the remainder i s exported mainly to the United States and Great B r i t a i n . The Lower Mainland f i s h i n g industry employs 2,000 people on a seasonal basis and requires that fishermen f i n d a l t e r n a t e off-season employment. The number of fishermen i n the Lower Mainland w i l l l i k e l y continue to decrease with more e f f i c i e n t harvesting method. 167 SECONDARY INDUSTRY The secondary sector includes processing, fabricating and construction industries which involve the manufacture of raw materials into semi-finished or finished products. Processing Industries These industries manufacture simple products from raw materials and include the following; A) Agricultural products processing, includes slaughtering and packing plants, poultry processors, milk product processing, pasteurizing plants f i s h products industry, f r u i t and vegetables, feed manufacturers and flour m i l l . Most of the products are consumed by the Lower Mainland and few are exported to other markets. B) Forestry products processing includes shingle mills and pulp and paper m i l l s . Three out of Canada's four top exports are forest products; with the B r i t i s h Columbia producing 717. of the lumber, 817. of the plywood, 237. of the pulp and 157. of the paper output. In total 377. of a l l Canadian forest product exports originate in Br i t i s h Columbia where the industry depends heavily upon export markets for continued growth. The Greater Vancouver Regional D i s t r i c t has published an "Industrial 78 Location Quotients" study which is a measure of the major industries in Metropolitan Vancouver. These industries listed by relative importance y g Greater Vancouver Regional Di s t r i c t : The Lower Mainland Economy: Trends and Prospects: Appendix 3 : 3 168 are: veneers (plywood), sawmilling, paper products, s h i p b u i l d i n g , f i s h processing, petroleum products, sash and door (planing) p r i n t i n g and pub l i s h i n g . The s i g n i f i c a n c e of i n d u s t r i e s based on f o r e s t resources i s r e a d i l y a p p a r e n t . ^ Sawmilling i s located throughout B.C. with major concentrations at Prince George, southern Vancouver Island and i s the Lower Mainland. The Lower Mainland industry i s predicated on a v a i l a b l e labour f o r c e , transport advantages and market advantages. No pulp m i l l s are located i n the Lower Mainland due to t h e i r incompatability with urban development, consequently only 57. of B.C.'s pulp and paper employees reside i n Metropolitan Vancouver. Currently one-h a l f of the pulp produced i n B.C. i s exported, the remainder being used for l o c a l manufacture of paper and newsprint, 757. of which i s subsequently exported. The Community Economic Base Sudy w r i t t e n by C. Tiebout, discusses several methods of measuring the Economic base of a community. The i n d u s t r i a l l o c a t i o n quotient i s one of the i n d i r e c t measures of an economic base. I f a given community i s h i g h l y s p e c i a l i z e d r e l a t i v e to the nation i n production of a p a r t i c u l a r commodity then i t i s presigned an export. The l o c a t i o n quotient i s c a l c u l a t e d using the following formula; "x" i s the unknown. x _ n a t i o n a l employment i n industry T o t a l l o c a l employment T o t a l n a t i o n a l employment This method i s based on three assumptions - uniform demand - p r o d u c t i v i t y uniform - uniform product mix TABLE XXX TOTAL LABOUR FORCE TOTAL GOODS PRODUCING INDUSTRIES TOTAL SERVICE PRODUCING INDUSTRIES TOTAL LABOUR FORCE Y ^ R No. of % of To t a l % Increase No. of % of To t a l % Increase No. of % increase Ratio persons labour force persons labour force persons of Service . ^ to Goods 1951 198,000 44.6% 245,900 55.4% 443,900 1.24 1961 212,500 36.87. 7% 365,100 63.2% 48% 577,600 30% 1.70 1966 258,000 36.3% 24% 452,000 63.6% 23% 710,000 23% 1.75 1975 325,000 33.9% 26% 635,000 66.1% 407. 960,000 34% 1.95 Source: B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , V i c t o r i a , B.C. ON VO 170 TABLE XXXI DOMESTIC EXPORTS BY LEADING PRODUCT - 1966 PRODUCT 7. of T o t a l Exports Wheat 10.5 Newsprint 9.6 Wood Pulp 5.2 Lumber 4.7 Automobiles 4.3 Iron Ore 3.7 Aluminum 2.7 Petroleum 3.2 Copper 2.6 Motor Vehicle parts 2.5 N i c k e l 2.1 N i c k e l Ore 1.8 Asbestos 1.6 A g r i c u l t u r a l Machinery 1.6 F e r t i l i z e r 1.4 Whiskey 1.3 Natural Gas 1.1 60.9 Source: D.B.S. Canada Year Book (Ottawa, Queen's P r i n t e r , 1969) 171 Mineral Processing Most of B r i t i s h Columbia's Minerals enter the market i n raw of semi-finished s t a t e . In terms of value of production metal r e f i n i n g i s B.C.'s t h i r d l a r g e s t industry with the bulk coming from the lead-zinc smelter plant a t T r a i l and the aluminum reduction plant at Kitimat. Petro chemicals plants have located w i t h i n the Lower Mainland with over two-thirds of B.C.'s petro chemical workers being employed here; the main advantage being the market and transportation network. F a b r i c a t i n g Industries These i n d u s t r i e s manufacture "processed m a t e r i a l s " i n t o high value products or parts and assemble them. Manufacturing a c t i v i t y i n B.C. accounts f o r 8.17. of "value added by manufacture" i n Canada's processing and f a b r i c a t i n g i n d u s t r i e s the p o t e n t i a l f o r f a b r i c a t i o n depends on enlargement of both domestic and export markets. Since the bulk of B.C.'s population, i n d u s t r i e s , and services are i n the Lower Mainland i t i s l i k e l y that the majority of f a b r i c a t o r s w i l l be a t t r a c t e d to the Lower Mainland. At present the most s i g n i f i c a n t f a b r i c a t i n g i n d u s t r i e s of the Lower Mainland are based on abundant f o r e s t materials and on s e r v i c i n g western Canadian domestic markets. 172 Construction A c t i v i t y i n t h i s industry strongly r e f l e c t s the p r e v a i l i n g business and investment climate. Construction employment i n B.C. doubled between 1961 and 1967, growing f a s t e r than any other industry. The Lower Mainland's construction force amounted to 6.87. of the t o t a l force i n 1961. The greater Vancouver Regional D i s t r i c t estimates that the construction employment w i l l grow proportionately to the t o t a l labour force i n the range of 6.57. to 7.17o. TERTIARY SECTOR Growth i n this sector of the economy i s the r e s u l t of our increasing material a f f l u e n c e . Changes i n the economic structure are shown on Table XXXII. Service sector encompasses the following a c t i v i t i e s ; transportation, communication, trade, finance, insurance, r e a l estate, community business and personal service, and public administration and defence. Transportation, Communications and U t i l i t i e s The Lower Mainland i s a f o c a l point of B r i t i s h Columbia's transport f a c i l i t i e s and i s the primary d i s t r i b u t i o n centre. Growing markets on the P a c i f i c Rim countries point to an increase i n trade through the port of Vancouver. The Communications industry i s expected to grow i n response to increased business and personal use and t e c h n i c a l innovations. In t o t a l i t i s expected that employment i n t h i s group w i l l remain i n the range of 117= - 127. of the r e g i o n a l labour f o r c e . Lower Mainland Regional Planning Board. A report e n t i t l e d "The Lower Mainland Economy: Trends and Prospects," Vancouver, 1969, p. 31 173 Trade R e t a i l and wholesale trade e x i s t s to meet demand f o r consumer goods Metropolitan Vancouver functions as a d i s t r i b u t i o n centre f o r the region and much of B.C. This can be expected to grow as population and purchasing power increases. Finance Insurance and Real Estate Employment i n these s e r v i c e s depends on the s i z e of the population served. At present approximately 57. of the 81 labour force i s i n t h i s group. Community, Business and Personal Services This category embraces a range of a c t i v i t i e s i n c l u d i n g ; education, h e a l t h and welfare, personal s e r v i c e s , r e c r e a t i o n and business services such as accounting, l e g a l o r g a n i z a t i o n a l and marketing s e r v i c e . This sector accounts f o r the highest and most s t e a d i l y expanding 82 proportion of service industry employment. 8 1 I b i d . , p. 32 I b i d . , pp. 33-34 THE FUTURE ECONOMIC ROLE OF THE LOWER MAINLAND 174 Having generally examined the Lower Mainland's economy t h i s section s h i f t s to consider the economic r o l e s which t h i s region w i l l play i n future years. The Lower Mainland now houses over h a l f of B r i t i s h Columbia's population and approximately 607. of i t s labour f o r c e . The Greater Vancouver Regional D i s t r i c t ' s Planning Department expects that i t should maintain t h i s p o s i t i o n and the next 20 years w i l l l i k e l y see a 70% increase i n the region's population and perhaps a 90% increase 83 i n the labour force. Employment i n the Primary Sector w i l l continue to decline as a proportion of the Lower Mainland's labour f o r c e . Employment i n the e x t r a c t i v e i n d u s t r i e s w i l l drop to one-third of the present proportion by 1981 r e f l e c t i n g both automation and d e p l e t i o n of resources. However, increase i n mining a c t i v i t y elsewhere i n B.C. w i l l be a major generator of employment i n the Lower Mainland's manufacturing and s e r v i c e i n d u s t r i e s to serve as a major supply and management centre. A c t i v i t y of the Lower Mainland's processing i n d u s t r i e s i s expected to increase i n the future employment and i s expected to decrease due to r i s i n g p r o d u c t i v i t y . I t i s expected that expansion of e x t r a c t i v e and processing i n d u s t r i e s w i l l stimulate f a b r i c a t i n g i n d u s t r i e s i n the region. Thus the future of the secondary i n d u s t r i e s 8 3 I b i d . , i s t i e d to the o v e r a l l economy, the strength of which depends upon f o r e i g n demand. The prospects f o r f a b r i c a t i n g i n d u s t r i e s producing consumer goods f o r use i n B.C. are dependent upon increases i n both population and a f f l u e n c e . 176 TABLE XXXII SERVICE EMPLOYMENT AS A PERCENTAGE OF TOTAL EMPLOYMENT 1961 MORE URBAN INDUSTRY CANADA LOWER METRO VANCOUVER MAINLAND VANCOUVER CITY Transportation 9.3 10.9 11.4 11.8 12.5 Trade 15.3 17.2 19.5 20.4 20.3 Finance 3.5 2.9 5.1 5.4 6.0 Services 19.5 21.4 23.3 23.8 26.7 P u b l i c Adminis tra t i o n 9.9 9.1 9. 3 9.0 8.7 TOTAL TERTIARY 57.5 62.5 68.6 70.4 74.2 Source: DBS Census of Canada, (Cats. 94-518, 519: 14-521) 69 (Ottawa : Queen' s P r i n t e r 1961) 177 TABLE XXXIII PERCENTAGE DISTRIBUTION OF EMPLOYMENT IN THE LOWER MAINLAND - BY INDUSTRY GROUP 1951 -1981 EMPLOYMENT AS 7. of TOTAL ACTUAL* FORECAST ESTIMATES ECONOMIC ACTIVITY 1951 1961 1971 1981 2000 range mean Agriculture 4.4 2.9 1.6 1.0 Extracture 4.3 2.8 1.4 0.8 TOTAL PRIMARY 8.7 5.7 3.0 1.8 1 - 2 1.5 Manufacturing 24.0 18.9 19.0 19.0 Cons true tion 7.1 6.8 6.8 6.8 TOTAL SECONDARY 31.1 25.7 25.8 25.8 22-26 24 Transportation group 11.4 11.4 11.6 11.6 Trade 19.2 19.5 19.5 19.5 Finance 4.2 5.1 5.5 5.5 Service *** 24.0* 23.3 24.9 25.9 Public Administration 1.4* 9.3 9.7 9.9 TOTAL TERTIARY 60.2 68.6 71.2 72.4 72-77 74.: Source: Lower Mainland's Economy, Trends and Prospects: p. 52. * Public Administration employment grouped with "Service u n t i l 1961 ** 1951 and 1961 Census not s t r i c t l y comparable due to SIC revisions and introduction of the "New Establishment Concept" *** Community, business and personal service industries YEAR 1951 1961 1966 1975 1951 1961 1966 1975 1951 1961 1966 1975 TABLE XXXIV LABOUR FORCE IN BRITISH COLUMBIA -1951, 1961 Actual, 1966 Estimated and 1975 Forecast TRANSPORTATION. COMMUNICATION AND PUBLIC UTILITIES No. of Persons 7. of Total Labour Force 7. Increase No. of Persons 7. of Total Labour Force 48,500 64,700 80,000 110,000 FINANCE 10.97. 11.27. 11.37. 11.57. INSURANCE AND REAL ESTATE 14,800 23,300 30,000 45,000 TOTAL SERVICE 3.37. 4.07. 4.27. 4.77. PRODUCING INDUSTRIES 245,900 365,100 542,000 635,000 55.47. 63.27. 63.67. 66.17. 337. 217. 377. 577. 297. 507. 487. 237. 407, 74,300 102,200 125,000 180,000 108,300 174,900 217,000 300,000 16.87. 17.77. 17.67. 18.77. SERVICE 24.47. 30.37. 30.67, 31.27. 7. Increase 377. 237. 237. 617. 247. 287. Source: Lower Mainland Trends and Prospects o o TABLE XXXV IABOUR FORCE IN BRITISH COLUMBIA 1951, 1961 Actual, 1966 Estimated and 1975 Forecast GOODS PRODUCING INDUSTRIES YEAR AGRICULTURE FORESTRY (LOGGING) FTSHTNG AND TRAPPTNG No. of Persons % of Total Labor force . Increase No. of Persons % of Total 'i Labour force o Increase No. of Persons % of Total • Labour force % Inc: 1951 28,100 6.3 25,300 5.7 4,900 1.1 1961 24,000 4.2 14% 21,700 3.7 7% 4,600 0.8 7% 1966 25,000 3.5 5% 25,000 3.5 20% 5,000 0.7 107. 1975 28,000 2.9 11% 30,000 3.1 20% 5,000 0.5 07. YEAR AGRICULTURE FORESTRY (LOGGING) CONSTRUCTION 1951 11,600 2.6 99.700 22.5 28,400 6.4 1961 8,400 1.5 29% 116,400 20.1 167. 37,400 6.5 24% 1966 13,000 1.8 50% 135,000 19.0 16% 55,000 7.7 47%-1975 17,000 1.8 30% 175,000 18.2 30% 70,000 7.3 28% TOTAL GOODS PRODUCING YEAR INDUSTRIES 1951 198,000 44.6% 1961 212,500 36.8% 7% 1966 258,000 36.3% 24% 1975 325,000 33.97. 26% 

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