Kitsilano-4th Avenue
Commercial Area Profile The Kitsilano 4th Avenue Business Improvement Area (BIA) is an 8-block commercial strip on West 4th Avenue between Balsam and Fir streets. The BIA comprises approximately 24,800 residents, 318 businesses and approximately 3,100 daytime employees. Another 13,070 employees work within a one-kilometre radius of the BIA, providing an additional potential market for businesses locating here. Comprised of commercial district zoning (primarily C-2B with some C-3A), the Kitsilano 4th Avenue BIA contains a mix of old and new commercial developments. Known for its urban chic apparel and homeware stores, the area is also ideally suited for businesses catering to personal and business services.
This report provides an overview of the Kitsilano 4th Avenue commercial market, focusing primarily on zoning and development potential as well as business and employee mix.1 The Kitsilano 4th Avenue Neighbourhood Market Profile focuses on key market information including population, household and spending statistics. 1. Unless otherwise stated, source of all statistics is City of Vancouver or Small Business BC (InfoCanada) data files. Info Canada files are based on postal code boundaries. As such, some minor inconsistencies with actual BIA profile may occur. Fast FactsBIA size: 8 city blocks; 24,862 residents; 16,170 daytime employee base, including 3,100 within the BIA. Primarily C-2B zoning with some C-3A Over $200 million in assessed commercial properties, representing 7% of commercial properties outside of downtown Vancouver. Ranked 7th highest among Vancouver BIAs. Many commercial properties in the BIA remain single owner, 1-2 storey units with solid rental revenues. Most have redevelopment potential, as market forces permit. Major business types include miscellaneous retail, eating and drinking places, personal services, apparel and accessory stores and health services. Significant vehicle volumes pass through the BIA to and from the downtown core. In addition, major bus routes carry thousands of commuters to UBC each day, exposing commuters to the BIA each day. Reflecting its stable commercial base and low development rate, the Kits 4th Avenue BIA sees a very nominal growth rate from year to year. Between 2000 and 2005, the number of businesses in the BIA grew by 1.6%, significantly lower than the Vancouver average of 20.2% and the GVRD of 13.5%.
Physical Profile The Kitsilano 4th Avenue BIA is centrally located within the City of Vancouver – approximately 2.5 kilometres from City Hall and 2.25 kilometres from downtown.2 The BIA is home to 149 commercial properties and 318 businesses. 4th Avenue is known as a shopping district that attracts both local and destination shoppers from inside and outside the City. The BIA has two structures listed on the Vancouver Heritage Register - 2199 West 4th Avenue (the CIBC building) and 1940 Arbutus Street. The surrounding area also has a significant number of structures listed in the Register, particularly on West 5th Avenue and Cypress Street.
Key elements of the BIA’s physical profile are discussed below. 2. Source: City of Vancouver VanMap. Zoning MixThe Kitsilano 4th Avenue BIA comprises over 20 acres of land, 718,340 square feet of commercial area and 199,367 square feet of residential area. City of Vancouver records indicate that the BIA consists of Commercial District Zoning: primarily C-3A with some C-2B as illustrated in Figure 2. C-2B zoning promotes a wide range of goods and services, particularly personal services, in a central location. C-3A zoning also allows light manufacturing as well as residential. 
Assessed ValueIn terms of assessed value, Kitsilano 4th Avenue ranks 7th highest among Vancouver BIAs. The total 2005 assessed value of all Kits’ commercial properties was $201,252,852. This represents 7% of the value of all Vancouver BIA properties outside of Downtown and contributes over $3.3 million in property taxes annually. Age and Quality of BuildingsThe majority of commercial buildings in the Kitsilano 4th Avenue BIA (69%) were constructed before 1970, with fully one-third being constructed pre-1946 (see Figure 3a). However, many of these older buildings have been updated, such that only 11% reflect pre-1946 standards (see Figure 3b). Only 6% of Kits commercial buildings were constructed post 1991. 
Lease and Vacancy RatesDue to its attractiveness as a retail and commercial centre, Kitsilano 4th Avenue enjoys a relatively low commercial vacancy rate.3 A January 2006 survey of the BIA found only three office spaces and three commercial spaces for lease. Retail space was available for approximately $22 per square foot, and operating costs varied between $5 and $11 per square foot, including taxes. 3. BIA physical survey, January 2006 by National Land Consultants, Lucent Strategies and Girard Land Services. Development Potential In the early 1990’s Kitsilano 4th Avenue saw a significant transformation with the redevelopment of the 2200 block of West 4th Avenue. Formerly an auto dealership, the block is now host to three very popular local retail centers – Capers, Coast Mountain Sports and Duthie Books. A number of other smaller developments followed, with relatively little post millennium development. This is likely due in part to the solid rental revenues that landlords continue to realize from the retail and service businesses that occupy their buildings, many of whom are long-term tenants.
Many of the commercial properties in the BIA remain single owner, 1-2 storey units with some degree of charm. Most have redevelopment potential, particularly from Balsam to Vine, the south side of 4th Avenue from Vine to Yew, and most of the area east of Burrard. One such property at 1670 West 4th Avenue is being promoted for a proposed residential/ commercial development. An interesting phenomenon in the Kitsilano 4th Avenue BIA is the redevelopment of buildings within the existing single-storey footprint, as was recently completed in the 2100 block of West 4th Avenue. This type of development has the benefit of avoiding the expense of high construction costs required to provide the underground parking that is mandatory with C2 developments. The higher rental revenues larger chain stores are willing to pay makes this type of development attractive for landlords, but has the potential to significantly change the character and the retail mix within the BIA. Business MixThe zoning mix and commercial building structure of the BIA primarily supports retail and service establishments. The majority of businesses (50%) in the BIA are ‘micro’ sized – less than five employees, although there are a significant number (40%) of businesses with 5-20 employees in the area. Major business types include miscellaneous retail, eating and drinking places, personal services, apparel and accessory stores and health services, as described in more detail below. Business TypesSimilar to the average for the City of Vancouver and GVRD, the Kitsilano 4th Avenue BIA is primarily comprised of retail and service businesses. However, unlike the City and GVRD, the Kits BIA caters almost solely to these two business types, particularly retail, as illustrated in Figure 4. 
Table 1 provides a detailed breakdown of business types for the Kitsilano 4th Avenue area as compared with the city and the GVRD.4 
Of the 53% retail businesses, the most common are miscellaneous retail (33%), eating and drinking places (26%), apparel and accessory stores (17%) and furniture/home furnishings/equipment stores (10%), as outlined in Table 2. Of the 32% service businesses, most are personal services (22%), health services (17%), business services (13%) and engineering and management services (13%), also illustrated in Table 2. 
As for individual business types, there are a significant number of restaurants (37) as well as retail sporting good stores (13), gift shops (9), retail furniture dealers (8), dentists (8), beauty salons (7), travel agencies (6), retail shoe stores (5) and automobile repairing and servicing (5). 4. Businesses maintaining a post office box address within the BIA are included in SBBC data. They may not actually operate within the BIA itself. In the 4th Avenue BIA, for example, only six of the ten manufacturing businesses operate within the BIA. Business SizeThe Kitsilano 4th Avenue BIA is comprised primarily of ‘micro’ sized businesses with less than 5 employees (50%), followed by small sized businesses with 5-20 employees (40%), as Figure 5 illustrates. The BIA’s largest employers include: Businesses with more than 50 employees: 
Age of BusinessReflecting Kitsilano 4th Avenue’s long history as a commercial and residential area in Vancouver, many 4th Avenue businesses (38%) have been operating for over 10 years. However, its attractiveness as a retail destination also encourages new businesses to establish, and fully 19% are only 1-2 years of age. Figure 6 provides more detail on the distribution of business ages. The relatively even mix of business within the BIA ages provides stability as well as change, to keep the area fresh and current, and maintain the area’s appeal for destination shoppers. 
Anchor Tenants and Dominant BusinessesAnchor tenants in the Kitsilano 4th Avenue BIA include Capers (grocery), Lulu Lemon (active wear), Bishops Restaurant and Crocodile (baby clothing and furnishings). The BIA also is well represented by all of the major banks. As previously discussed, retail and service are the dominant business sectors in the Kitsilano 4th Avenue BIA. Three major business clusters include: On a percentage basis, the Kitsilano 4th Avenue BIA has significantly more “miscellaneous retail” and “apparel and accessory stores” than average for the City and the GVRD. The BIA’s strong retail business base would also benefit from additional personal and business services, which would help broaden the customer base. Change in Business MixReflecting its stable commercial base and low development rate, the Kits 4th Avenue BIA sees a very nominal growth rate from year to year. Between 2000 and 2005, the number of businesses in the BIA grew by only 1.6%, significantly lower than the Vancouver average of 20.2% and the GVRD average of 13.5%. Growth was highest among the following sectors: public administration – 3 businesses (300% increase) construction – 2 businesses (200% increase) manufacturing – 2 businesses (25% increase) transportation, communication, utilities – 1 business (11% increase) retail – 4 businesses (2% increase)
The wholesale, and service sectors declined in this time period, reducing by 29% and 3% respectively. Both of these sectors declined by significantly more than average for the City of Vancouver or the GVRD. In terms of sub-industries, the fastest growing in the BIA were health services (25 businesses), eating and drinking places (21), personal services (16) and engineering and management services (15). Figure 7 provides a breakdown of the top 10 fastest growing Kits 4th Avenue BIA sub-industries, as defined by Statistics Canada. 
Demand PotentialKitsilano 4th Avenue BIA’s demand potential comes from three primary sources – area residents, BIA employees, and other employees in the surrounding area. In addition, businesses in the BIA are exposed to thousands of daily commuters and City residents traveling by bus, bike and car. Each of these potential customer groups is discussed below. Residential Base Just over 24,800 residents live within the BIA’s primary catchment area (within 1 kilometre of 4th Avenue and Yew Street) and provide the primary market base for businesses. The Kitsilano residential base is a vibrant community of young to more middle-aged urban professionals, ethnically diverse, highly educated and small, single-person households. A multi-cultural centre, the area is comprised of more residents with European heritage and fewer with Asian heritage than average for the City of Vancouver. Chinese is also a significant culture, although less so than in the City of Vancouver. English is the dominant household language for area residents.
Household sizes in this area are smaller than the City and the GVRD average. With a higher proportion of apartment type dwellings, the area is also home to a greater percentage of renters. Reflecting their high education levels, Kitsilano residents exhibit slightly higher household incomes than the Vancouver average and slightly less than the GVRD average. The Kitsilano-4th Avenue Neighbourhood Market Profile provides more detail about this important market segment. Employee BaseApproximately 3,100 people are employed within the BIA itself.5 Surrounding businesses outside of the BIA employ an additional 13,070 workers. This provides a total estimated daytime employee market base for Kitsilano businesses of 16,170. Between 2000 and 20005, the Kitsilano 4th Avenue employee base increased by 22%, whereas employment for the businesses in the surrounding area increased by only 8%. 5. Source of employee information is InfoCanada via Small Business BC. Pedestrian and Vehicle Traffic4th Avenue and Burrard Street are major transportation corridors running through the BIA, providing exposure to thousands of daily commuters and City residents. As Figure 8 indicates, major intersections along 4th Avenue and Burrard Street see about 20,000 vehicles per day (yellow/orange on the map), while adjacent residential blocks that are not on major commuting routes see in the range of 1,200 to 6,600 vehicles. With street parking, frequent bus service and popular cycling routes nearby, businesses in the Kitsilano 4th Avenue BIA have significant potential to tap into the high traffic volumes on the major routes and capture “through-traffic” as customers. The City of Vancouver conducts pedestrian counts for approximately 250 blocks in the city, with the majority being in the downtown area. The most current pedestrian information available is for 2002. The representative location selected by the City for the Kitsilano 4th Avenue BIA is 2100 block of West 4th Avenue, a popular pedestrian block in the BIA. 
The 2100 West 4th Avenue block sees in the range of 1,631 (north side) to 1,881 (south side) pedestrians per day. The City ranks this combination of pedestrian activity to sidewalk size as a level of service ‘B’, which represents a relatively moderate pedestrian throughput. The dominant hour for pedestrian traffic is 1-2 pm on both the north and south sides. The location ranks 290th (north side) and 261st (south side) of the 501 block locations ranked in the 2002 survey. By comparison, the busiest block in the City (north side of Robson at Burrard) sees 29,182 pedestrians per day, with a level of service ‘D’ (significantly more crowded). Conclusions The Kitsilano 4th Avenue BIA is a commercial and residential area that has a diversified mix of retail and service businesses, with a focus on apparel and accessories, particularly recreational, maternity and baby clothes, as well as home furnishings. It is well known as a destination for shoppers both in the City and in the GVRD. It is also ideally suited to businesses catering to business and personal services. The BIA enjoys a stable base of old and new businesses operating in primarily older buildings. As Vancouver’s commercial market continues to grow, the Kitsilano area could see a new wave of redevelopment, bringing new vitality to the area. With Kitsilano 4th Avenue BIA’s dense residential base, exposure to thousands of daily commuters by bus, bike and car, as well as access to tens of thousands of tourists and destination shoppers due to its proximity to other major destination areas such as Kits Beach and downtown, retail and service businesses will continue to thrive.
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