Trends in Downsizing

Well, the downtown Vancouver (Pacific Centre) Sears store is a prime candidate to be subleased/subdivided for a rumoured Nordstrom’s store. Sears is 600,000 sq ft (compare that to the casino!) and Nordstrom’s are generally 200,000 to 300,000 sq ft. ( i.e. where else downtown can you find that much contiguous space?) The retail space in most condo podium is very chopped up due to elevator cores, etc. and a department store sized space would have to be purpose-built. Even the large 3 level HMV space at the old library (rumoured to be closing soon) is only 37,000 sq ft.

Subleasing space also creates synergy for the larger retail store –
Real Canadian Superstore has, for years, subleased small retail service units near its cashiers – i.e. insurance brokers, fast food counters, etc. The No. 3 Rd. Richmond store also has a number of retail units in its ground level parkade. (And remember that they charged for bags since inception of the stores, not when it became trendy)
Rona on Grandview Highway has a Robins Donuts.
Home Depot was/is the only place locally to buy a Harvey’s burger (other than YVR).
Wal-Mart has McDinalds in their stores.
Safeway has Starbucks either within their stores (in the U.S. i.e. Portland) or leasing street-fromting space in the building (Vancouver).
Department stores have also, for years, had “store within a store” boutiques (i.e. like the Tiffany boutique at Holt Renfrew or the PharmaMart at The Bay)