In what is likely a sign that the office market in Vancouver will still be murky for some time, Vancouver-based real estate developer Rize Alliance has decided to move on from The Grid, an office project it has been planning for several years.
The Grid was set for 306 Terminal Avenue in Vancouver, one block east from Main Street and the Expo Line SkyTrain’s Main Street-Science World Station.
The site spans 29,367 sq. ft, about half of which is currently occupied by a standalone Tim Hortons, while the other half remains vacant. Rize Alliance acquired the property for a reported $15,500,000 in 2017.
According to a development application submitted to the City of Vancouver in 2019, Rize Alliance was planning a 10-storey office building with food and beverage manufacturing on the ground level, clothing manufacturing on the second floor, and seven levels of office space above, for a total of 146,890 sq. ft of commercial space.
The proposal also called for three levels of underground parking and a total proposed floor space ratio of 5.0.
The Property
Earlier this month, however, 306 Terminal Avenue was listed for sale by Michael Buchan, Carey Buntain, Mitchell Knoepfel, and Megan Low of Avison Young. The property was listed without an asking price, but BC Assessment values the property at $31,952,000 in an assessment dated to July 1, 2024.
Although the previously-proposed project has been approved, the brokers note that the site carries the potential for more than the 5.0 FSR that has been approved, as a result of the site’s proximity to Main Street-Science World Station and the Province’s new transit-oriented area legislation. Because the site is just about 200 metres away from the station, the site could allow for 5.5 FSR.
The 306 Terminal Avenue site in Vancouver and its surrounding context. / Avison Young
“This desirable location allows developers to maximize the future potential of the site as the modernization of this area unfolds,” the brokers added, referring to the False Creek Flats. “The future of this area will focus on the creation of a Health Hub (new St. Paul’s Hospital and research centre), medical technology and research advancement, coupled with a substantial growth in population and residences in the immediate surrounding area.”
Avison Young also notes that the Tim Hortons lease expires in 2029.
Although not much of a development hotspot in previous years, the area has become home to a handful of notable new proposals in the few past months.
In late-December, GWL Realty Advisors submitted a rezoning application for twin 28-storey rental towers right across the street, at 1220 Station Street. That site was previously owned by Rize Alliance as well, where it was also planning an office project, the 13-storey Onyx, before selling the site to GWLRA. About two blocks west, at 1527 Main Street, Greystar submitted a rezoning application for two rental towers in September to redevelop the site that is currently occupied by a standalone McDonald’s.
Upon inquiry, Rize Alliance declined to comment on their decision to sell the site.