It looks like Vancouver’s housing market isn’t the only sector experiencing sky-high prices.
The commercial real estate scene is just as daunting.
Remember last month when we shared how two food court stalls were each going for over $8,000 a month for just 350 square feet?
Well, it isn’t stopping.
And Richmond’s commercial lease prices are giving Vancouver a run for its money, despite what you’d expect given the area’s lower population and traffic.
Our latest find brings us to Aberdeen Square, a mall notorious for its rows of empty stores since opening long ago.
There, two food court listings have caught our eye, and frankly, the lease prices aren’t painting a pretty picture again.
The Savoury Noodle stall is up for grabs at $5,500 per month, while the space formerly occupied by DY Nu Korean – which only lasted about two months before closing – is listed at $4,800 per month for 243 square feet.
Given Aberdeen Square food court’s significantly lower foot traffic (like 90%?) compared to the counterparts of Yaohan and Aberdeen Centre, these rates raise a few eyebrows.
Madness, right?
The listings audaciously describe these units as “Situated in the prime location of the mall’s bustling food court.”
This is a statement that locals will find a big stretch considering the stark difference in visitor numbers compared to the thriving Aberdeen Centre food court.
Sadly, the feedback from the front lines on the state of the industry isn’t any more encouraging.
Conversations with various food business owners have revealed a common sentiment: rent prices in the Lower Mainland have surged past the point of sustainability for many.
With the relentless climb of lease rates, it’s becoming increasingly difficult for new businesses to enter the scene, and we’re likely to see more closures as existing establishments struggle to keep up.
This scenario at Aberdeen Square is a microcosm of the broader challenges facing food businesses across the province.
As rent prices continue to soar, the vitality of the local food scene hangs in the balance, begging the question: how can these businesses (food businesses already notorious for low margins) thrive if the cost of simply opening doors remains prohibitively high?
Basically…things aren’t looking good and there is no sign of any solution in the near future either.
For more new and upcoming food spots in Metro Vancouver, take a peek at our tracker here, and subscribe to our weekly newsletter here.