The Value of Investing in Canadian Downtowns - International ...

PROSPERITY:
Is the downtown’s economy robust and innovative?
Victoria’s chief industries are technology, tourism,
education, food products, federal and provincial
government administration and services. Victoria’s
economic success and future is also seen to be
strongly rooted in protecting the natural environment,
valuing culture and heritage, and providing a high
quality of life and social wellbeing for its residents.
Residential Development
Victoria has experinced strong residential growth,
reflected in the many new condominium
developments emerging in the downtown. These
include Corazon, Juliet, Aria, The Falls, 601 Herald,
and The Hudson. 6 Interviewees commented that
Victoria has traditionally attracted retirees from across
Canada, and a key trend identified is that
condominiums target a broad cross section of
prospective purchasers, including both young couples
and singles. It is worth noting that a higher end
market is emerging along the waterfront, while a more
affordable housing market is emerging through the
core by way of loft conversions and smaller
condominiums. In addition, new projects have offered
a wide range of unit sizes to appeal to a cross section
of buyers.
Office Development
Downtown Victoria provides over half of the City of
Victoria’s office inventory (58%). One of the most
important players in Victoria’s office market is the
Provincial government. More specifically, the
Province occupies (as of fall 2006) about 3.4Msf of
office space across Greater Victoria, or about 45% of
the total regional office inventory. This concentration
is even more significant in the downtown with the
Province occupying approximately 2.6Msf of office
6
Condos Victoria BC. (2011). The Atrium raises the Bar for future
developments. Retrieved from: http://www.condosvictoriabc.com/theatrium-raises-the-bar-for-future-developments-in-the-downtown-core/.
Accessed 2012 February 15.
181
space, which accounts for about 60% of downtown
office space. 7
Recently a large scale office building was built in the
downtown – The Atrium. This award winning, $100M
building provides 200,000sf of office space and is
recognized for its quality design, particularly its
enclosed atrium that can be enjoyed by the public.
This atrium space is energized by restaurants that are
open late, and it hosts cultural events and concerts.
This project not only contributes important space for
employment but provides a new focal point to the
community and adds 24/7 life in the downtown.
The Atrium, Downtown Victoria
http://www.timescolonist.com/business/Commercia
Retail Development
l+Building+Awards+recognize+design+function/57
Downtown Victoria’s retail and service commercial
94920/story.html?cid=megadrop_story
floor space inventory is approximately 2Msf. The
downtown is supported by an inner city retailers
comprising 300,000sf of retail and service commercial
floor space. Together these two areas represent
approximately 14% of the total inventory within the
CRD. 8
Many interviewees noted that Victoria is experiencing
a shifting pattern of retail activity. Suburban
expansion has led to the development of large scale
retail spaces on the fringes of the CRD that compete
directly with the downtown retail core. In response the
7
Coriolis Consulting Corp. (2007). Downtown Victoria Office Demand
Projections: 2006 to 2026. Retrieved from:
http://www.victoria.ca/cityhall/pdfs/plnpln_downtown_anlyss_appb2.pdf.
Accessed 2012 February 17.
8
Ibid.