Strathcona
Commercial Area Profile Strathcona is Vancouver’s oldest residential community. Its longest running known business has existed for nearly 100 years.1 The Strathcona Business Improvement Area (BIA) boundaries (see Figure 1) are Gore Avenue, Hastings Street, Raymur Avenue, Venables Street, Clarke Drive and the waterfront (Powell and Railway streets). The BIA comprises more than 8,700 residents, 370 businesses and approximately 7,000 employees.2
Comprised primarily of M-2 industrial, I-2 light industrial and DEOD special comprehensive development zoning developed for the Downtown-Eastside/Oppenheimer area, Strathcona’s zoning mix provides a strong industrial base while facilitating continued development of affordable housing in the area. The area is ideally suited for factory outlets with retail storefronts, distribution centers, warehousing and manufacturing, and assembly and processing. This report provides an overview of the Strathcona commercial market, focusing primarily on zoning and development potential as well as business and employee mix.3 The Strathcona Neighbourhood Market Profile focuses on key market information including population, household and spending statistics. 1. Strathcona Business Opportunities, p. 1. 2. Source of employee count is Strathcona BIA 2005 Business Opportunities report. Note that resident and business totals may differ from Strathcona BIA data due to primary source materials (see footnote 3). 3. Unless otherwise stated, source of all statistics is City of Vancouver or Small Business BC (Statistics Canada) data files. Fast Facts68.1 hectares, 8,700 residents, 371 commercial properties, 370 businesses and 7,000 employees Primarily industrial (M-1 and M-2) and light industrial (I-2) zoning - Almost $225 million in assessed commercial properties, representing 8% of commercial properties outside of downtown Vancouver. Ranked 5th highest among Vancouver BIAs.
Development potential is increasing but may take several years to realize. Area caters primarily to industrial and manufacturing, as well as a growing retail and service sector. 52% of all businesses in the BIA have less than 5 employees. Strong representation in eating and drinking establishments and food stores as well as social services and automotive services. Significant vehicle volumes pass through the BIA each day – from 1,000 to over 40,000 per day, depending on location. Over 24,000 commuters are also exposed to the BIA each day. Between 2000 and 2005, the number of businesses in the BIA grew by 19%, slightly below the Vancouver average of 20.2% and above the GVRD average of 13.5%.
Physical ProfileThe Strathcona BIA is centrally located within the City of Vancouver – approximately three kilometres from City Hall and two kilometres from downtown.4 It is also close to rail and marine commercial and passenger terminals along the waterfront. The 68.1 hectare BIA, one of Vancouver’s largest, is home to 371 commercial properties and 703 businesses. Strathcona is known for its heritage character. The area has more than 200 structures listed on the Vancouver Heritage Register – 30 within the BIA itself. Many of the heritage buildings reflect the area’s commercial roots as well as its Chinese heritage. 4. Source: City of Vancouver VanMap. Zoning MixThe Strathcona BIA comprises over 100 acres of land, 3.6 million square feet of commercial area and 1.9 million square feet of residential area. Commercial properties in the Strathcona BIA are primarily M-2 industrial (139 parcels; 37% of area), I-2 light industrial (86 parcels, 23%), and DEOD special comprehensive development zoning developed for the Downtown-Eastside/Oppenheimer area (230 parcels, 24%), as illustrated in Figure 2. This zoning mix provides a strong industrial base while facilitating continued development of affordable housing in the area. Commercial and industrial uses that are compatible with residential housing such as artist live-work studios are being developed within this special zoning. 
Assessed ValueIn terms of assessed value, Strathcona ranks fifth highest among Vancouver BIAs. The total 2005 assessed value of all Strathcona BIA commercial properties was $224,598,216. This represents 8% of the value of all Vancouver BIA properties outside of Downtown and contributes over $3.6 million in property taxes. Age and Quality of BuildingsReflecting its heritage character, many commercial buildings in Strathcona (25%) were constructed pre-1946. The majority (37%) were constructed between 1946 and 1970, as illustrated in Figure 3a. However, many of these older buildings have been renovated such that only 15% reflect pre-1946 standards and 44% have an ”effective” build year of 1971 or newer, as illustrated in Figure 3b. 
Lease and Vacancy RatesStrathcona has a fairly high commercial vacancy rate, with 20 properties identified during a January 2006 survey of the area. Most properties are for lease, however lease rate information was very limited. Of the information found, prices were very low compared with other areas – in the range of $12 to 15 per square foot. Development Potential The Strathcona BIA is the second largest in Vancouver, with a lower cost per member than most BIAs and some of the lowest commercial lease rates in Vancouver.5 The BIA, businesses and residents are working hard to revitalize and create an improved image for the area, which had seen times of disrepair. Clean streets and graffiti removal programs as well as private security and a focus on marketing and promoting the area are beginning to show, with successful franchises like Starbucks now locating in the area. This is an indication of support for the initiatives and the beginning of a trend to a more positive type of infill retail/commercial development.
Strathcona is primarily located along busy commercial and commuter streets, such as Hastings, Cordova and Powell, accommodating more than 20,000 vehicles per day. This “strip” type profile is more conducive to smaller scale developments and less so for lot consolidation to support large retail development. In addition, with low rental return rates and a significant amount of heritage zoning in the Strathcona area, market forces will limit commercial development over the next several years. However, commercial and industrial property values continue to increase throughout Vancouver. With Strathcona’s proximity to downtown Vancouver, eventual development is expected. In fact, the area is beginning to see some smaller scale new commercial developments including projects at Vernon and Franklin and at Powell and Raymur. The difficulty for commercial and retail developers to assemble significant blocks of commercial land in this area suggests that in the short term, development will continue to be in smaller units along the existing major corridors. With continued support from the City of Vancouver for special development zoning, this may accelerate redevelopment. 5. Source: Strathcona Business Opportunities brochure and consultant site tour. Business Mix The zoning mix and commercial building structure of the Strathcona BIA primarily support factory outlets with retail storefronts, distribution centers, warehousing and manufacturing, and assembly and processing. The majority of businesses in the BIA are ‘micro’ sized – less than five employees, although some significant large-scale businesses also operate here. Major business types include wholesale and manufacturing, eating and drinking establishments, business services, membership organizations, health services, automotive services, food stores and apparel and accessory retailers, as described in more detail below.
Business TypesThe BIA has a diversified business mix, including 57% in the retail and service sector, and a healthy mix of manufacturing and wholesale enterprises. Reflecting its industrial zoning, the BIA has significantly more manufacturing and wholesale than average, as Figure 4 illustrates. It also has significantly fewer financial, insurance and real estate businesses, although this is one of the fastest growing business sectors in the BIA. 
Table 1 provides a detailed breakdown of business types for the Strathcona area as compared with the city and GVRD. 
Of the 36% service businesses, the most common are business services (18%), membership organizations (18%), health services (15%) and automotive (13%), as outlined in Table 2. Of the 21% retail businesses, most are eating and drinking establishments – primarily restaurants (30%), food stores including wholesale and retail grocers (15%) and apparel & accessory stores (11%). As for individual business types, there are a significant number of automotive repair businesses (22), clothing manufacturers (10), Internet service providers (9), graphic designers (7), and printers (7). 
Business SizeThe Strathcona BIA is primarily comprised of smaller sized businesses with less than 5 employees (52%), and 37% with 5-20 employees, as Figure 5 illustrates. The BIA’s largest employers include: Businesses with 250-499 employees: - Russell Food Equipment Ltd.
Businesses with 100-249 employees: Winner Sportswear Ltd. (a clothing manufacturer) Flash Courier Services Sunrise Soya Foods (Canada’s largest tofu manufacturer) Lookout Outreach (a social service organization)
Age of BusinessReflecting Strathcona’s long history as a commercial and residential area in Vancouver, many Strathcona businesses (42%) have been operating for over 10 years. However, almost one quarter are only 1-2 years of age. Figure 6 provides more detail on the distribution of business ages. This combination of old and new points to the success of the BIA’s revitalization and promotional work. Long-time businesses provide a stable market base, while fresh new businesses are increasing the area’s appeal for destination shoppers as well as the 24,000 commuters passing through each day.6 
6. Source: Strathcona Business Opportunities brochure. Anchor Tenants and Dominant BusinessesAnchor tenants in the Strathcona BIA include the Pink Pearl Restaurant (Chinese food), Larrivee Guitars (builder of world renowned guitars), La Casa Gelato, Sunrise Market (grocery store), Sunrise Soya Foods (wholesale grocery) and Russell Food Equipment Ltd. As previously discussed, wholesale and manufacturing are dominant business sectors in the Strathcona area, supporting light industrial and complementary services. On a percentage basis, Strathcona has more of the following types of businesses than average for the City of Vancouver: food products, apparel and textile products, furniture and fixtures, and non-durable wholesale products. The BIA has six major business clusters including: In addition, numerous social service organizations operate within the BIA. It should be noted that while Strathcona supports a large number of restaurants, it actually has a smaller percentage than average for the City of Vancouver. The eclectic mix of businesses serve a broad customer base, both wholesale and retail, adding to the vibrancy of the area. Change in Business MixBetween 2000 and 2005, the number of businesses in the Strathcona BIA grew by 19%, slightly below the Vancouver average of 20.2% and above the GVRD average of 13.5%. Growth was highest among the following sectors: public administration – 20 businesses (250% increase) manufacturing – 30 businesses (48% increase) construction – 6 businesses (43% increase) finance, insurance and real estate – 8 businesses (42% increase)
The wholesale and transportation/communications/utilities sectors declined in this time period, reducing by 36% and 15% 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 executive, legislative & general government (17 businesses), followed by business services (15) and membership organizations (15). Figure 7 provides a breakdown of the top 10 fastest growing Strathcona BIA sub-industries, as defined by Statistics Canada. 
Demand PotentialStrathcona BIA demand potential comes from three primary sources – residents in the area, BIA employees, and other employees in the surrounding area. In addition, businesses in the BIA are exposed to thousands of daily commuters traveling by bus, bike and car. Each of these potential customer groups is discussed below. top Residential Base Just over 8,700 residents live within the BIA’s primary catchment area [1 km east of Clark to 1 km west of Gore (east/west) and Prior/Malkin/Glen/Grant to the waterfront (south/north)], and provide the primary market base for businesses. The Strathcona residential base is a vibrant community of seniors, working families, professionals and artists. A multi-cultural centre, the area is comprised of more residents with Chinese and Vietnamese heritage than average for the City of Vancouver. Chinese is the dominant household language for area residents.
Household sizes in this area are smaller than the City or GVRD average. With a higher proportion of apartment type housing, the area is home to a greater percentage of renters than average for the City, including a significant proportion of those living in non-market housing. Reflecting their older age, lower education levels and smaller household size, Strathcona exhibits lower household incomes than the Vancouver or GVRD average. However, with an increasing number of families as well as young singles that have higher disposable incomes, the face of Strathcona is changing. Building on its cultural heritage, the Strathcona area is also increasingly attracting young singles with artistic and cultural employment and interests. The Strathcona Neighbourhood Market Profile provides more detail about this important market segment. Employee BaseApproximately 7,000 people are employed within the BIA itself;7 however more than 15,000 work within a one-kilometre radius of the BIA, providing an additional potential market base for businesses. The Strathcona employee base has increased by 23% in the past five years. 7 Source of employee count within the BIA (7,000) is Strathcona 2005 Business Opportunities report. Growth rate was determined by comparing 2000 and 2005 Statistics Canada data. top Pedestrian and Vehicle TrafficSeveral major transportation corridors in the City cross through the Strathcona BIA, including Hastings, Cordova and Powell streets, providing exposure to approximately 24,000 daily commuters. As Figure 8 indicates, major intersections along Hastings Street see tens of thousands of vehicles per day (red areas on the map), while adjacent blocks that are not on major commuting routes see in the range of 1,000 to 10,000 vehicles. 
With ample street parking (outside of peak commuting hours) and frequent bus service, businesses in this BIA have significant potential to tap into the high traffic volumes on major routes and capture “through-traffic” as customers. The City of Vancouver also 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 Strathcona BIA is the 600 block of East Cordova Street. However, fieldwork conducted by the BIA indicates that the largest pedestrian volumes are found on the Hastings and Powell Streets. The 600 Cordova block sees in the range of 100 (north side) to 250 (south side) pedestrians per day. The City ranks this combination of pedestrian activity to sidewalk size as level of service ‘A,” which represents a relatively low pedestrian throughput. The dominant hour for pedestrian traffic is 5-6 pm on the north side and 11am to noon on the south side. This location ranks 499th (north side) and 493rd (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 level of service ‘D’ (significantly more crowded). Since June 2002 was the first time the Strathcona BIA was surveyed, trend analysis is not currently available. What Existing Businesses SayIn addition to regular resident and customer intercept surveys, the Strathcona BIA also conducts member surveys. In a 2005 survey Strathcona businesses listed the following advantages of a Strathcona business location: close to customers and downtown lots of free customer and commercial parking competitive land and lease costs access to major commuter and bus routes
In addition, 41% of businesses indicated they are expanding their products or services, 33% have made physical improvements and 20% have new marketing campaigns underway. Conclusions Strathcona is a long-standing and growing business area, that has a diversified mix of businesses. The BIA is ideally suited for factory outlets with retail storefronts, distribution centers, warehousing and manufacturing, and assembly and processing and is also a growing area for public offices, construction and finance/real estate. With Strathcona’s proximity to downtown, stable residential base and zoning mix, retail and service business opportunities are also increasingly favourable.
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