Robson Street's 'for lease' signs signal changing times

Years ago retailers would jump at the opportunity to showcase their brands on Robson Street.

But walk through the outdoor shopping districttoday and there are a dozenof empty storefrontwindowsdisplaying 'for lease' signs within a three block radiusfromJervistoThurlow Streets.

"Up until probably five years ago, most often you wouldn't even see a vacancy,"saidMarioNegris, acommercial realtor.

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"Tenants would say I'm prepared to cut a cheque to get on the street."

But in the past few years, a long-list of retailers have moved out, includingChapters, French Connection, Mexx, the Starbuckson the kitty-cornerand most recently the Canucksstore.

Negris who has been working on Robson Street for 20 years saidthe shift is specific to the 1100 block of Robson Street, because foot traffic has moved east towards Nordstrom and Pacific Centre Mall.

Retail consultant David Ian Gray, the founder ofDIG360Consulting,agrees.

"It was really triggered by two things. One was the rise of the luxury area off Alberni," Gray said.

"The other has been a more sudden shift triggered byNordstromtaking overfrom Sears what we used to call the urinal, because no one wanted to walk down that part of Robson," he said.

Rents dropped20 to25%

Negris saideventhough rents have dropped, high property taxes continue to feed the problem.

"Your property taxon RobsonStreet is$50 to$60 a foot," he said."We're talking about some pretty hefty numbersthat addto the occupancy costs oftenants."

Rents for stores on RobsonStreetbetween ButeandThurlowStreets arearound $125 to$150 a square foot, down 20 to 25 per cent from its peak five years ago.

"Ido think it is a good deal right now for retailers to get onRobson,because you are signing up for rents which are reallyat a discount," he said.

Future is bright

Negris believes things will turn around, despite the number of empty storefronts.

Rather than popping a tenant to plug a vacancy, he istrying to introduce a mix of new brands to Vancouver brands similar to Ladure, the popularmacaron storewhich has had a line-up since it opened in March.

"The moredesirablewe make it as a shoppingdestination, thenthe greater the success tenants will have as well," he said.

Negrisdoesn't expect it to be long until the street once again sees peak rents of $200 to $250 a square foot.

"It will only take one [store] of some prominence to sign on and others will be drawn to the area,"Gray agrees.