Two current applications continue a recent trend of redevelopment of older I-1 zoned properties in the Mt. Pleasant area, referred to more recently by some as “Mt. Pixel” because of the many tech companies that are locating in the area. The I-1 zone was amended by the City in 2013 to be more flexible in allowing office uses up to 3.0 FSR in density, and this has spurred several land sales; primarily to developers, either for speculative development or build-to-suits. The pace of recent development applications points to the demand for general office use in an area that was traditionally limited to light-industrial uses.

The two projects are outlined below:

22 East 5th Avenue

This proposal for this site at the Southeast corner of East 5th and Ontario envisions restoring the facade of the existing one-storey industrial building on site, and adding a new 6-storey retail and office building with parking on the first and second floor (due to site slope). Details include:

• manufacturing and retail uses on the main floor
• office space on the 3rd to 6th floors
• total density of 54,389 SF (3.0 FSR)
• 46,537 SF of office space
• a building height of 80 ft.
• 70 parking stalls on the main and 2nd floor

Existing Site Condition

The architect for this project is Christopher Bozyk.

34 West 7th Avenue

An application has also been filed by Chard Development for a site at 34 West 7th, which was purchased for $8,150,000 earlier this year. Preliminary plans call for a 4-storey building with clothing manufacturing uses on the ground floor and office uses on the 2nd to 4th floors, and two levels of underground parking. The total density is not known at this time, but the site would allow for up to 54,350 SF (3.0 FSR).

The architect for this project is Proscenium Architecture.

Continuing the trend of strong demand for Mount Pleasant industrial properties with redevelopment potential, 34-54 West 7th Avenue has sold for $8,510,000, or $157 per buildable SF. The buyer was Chard Development.

The existing building is an aging two-level industrial building originally a meat packing plant and now a food manufacturing facility.

The 18,117 SF site is zoned I-1. Traditionally, I-1 zoning was a mixed light-industrial office zone, but in 2013 the City of Vancouver amended the zone to allow 100% general office. This amendment has set off a two year long flurry of speculative sale and development activity, with a few office projects already in the works. With few opportunities to build smaller office buildings downtown, and with soaring land prices everywhere where residential or mixed-use is allowed, Mount Pleasant has been a target for many developers and users.

The building had been listed for sale by Casey Weeks, Matt Smith and James Starke of Colliers and received multiple offers.

A development application by Rendition Developments for a 50 foot lot at the Northwest corner of Ontario and West 6th Avenue demonstrates the type of development we are likely to see more of in the I-1 zoned area of Mount Pleasant. The site address is 2151 Ontario.

The plan for this 6,039 SF site is a three-storey building with clothing manufacturing on the ground floor, and general offices on the 2nd and 3rd floors. Details includes:

• 5,909 SF of manufacturing area
• 11,875 SF of office space
• A density of 2.95 FSR
• 13 underground parking stalls

The site is currently improved with a single storey industrial building that was listed for sale late last year for $2,695,000, and sold for full asking price.

Changes made to the I-1 zone in 2013 allowed more flexibility with respect to building general office space, which was previously restricted to uses related to the manufacturing. Parking relaxations have also allowed sites such as 2151 Ontario to reach full density without further assembly for underground parking.

Not surprisingly, the 2013 zoning changes have resulted in an attendant increase in sales activity and land values over the past 18 months, a trend which is reinforced with stagnant rates for older light-industrial space.