Commercial Real Estate News / Insight / 2022 CRE Market Trends in Vancouver, WA

2022 CRE Market Trends in Vancouver, WA

Published: 03-17-22 Category: Insight

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

The tight dance between supply and demand is on full display in the greater Vancouver, WA area. Indeed, rising costs have hit the area at a time where development continues to grow and costs outstrip income for many; others are finding themselves in a unique position for new opportunities.

Real estate has always been a complicated story between competing interests, and looking at market trends across the country can yield new insights. It goes without saying that the market in Kalamazoo is going to be quite different compared to a place like Vancouver, WA.

Understanding the Demographics

Those interested in commercial real estate opportunities in Vancouver should take the time to understand the demographics first. What makes the area so special? What’s creating the perfect storm for higher costs?

In a word, geography. Vancouver and Portland are so close that Vancouver residents simply shuttle over the bridge to Portland every day. There’s no individual income tax on the Washington side, and the property taxes are lower on average. So the play has long been to live in Vancouver, but work in Portland.

Currently, Vancouver has a population of roughly 186,192 from a 2020 estimate, and the close proximity to Portland gives residents of both areas a virtual “who’s who” list of powerhouse companies, including Nautilus, ZoomInfo, Nike, Banfield Pet Hospital, Columbia Sportswear, Tektronix, Cambia Health Solutions, Qorvo, Adidas, and many, many more.

Studying Local Development Restrictions for Insights

One of the most controversial areas of development is the bridge between local government and local developers.

The public is able to also comment on local development, and it’s a good idea to pay attention to past and current local issues that can have a deep impact on development. When it comes to Vancouver, one of the most recent concerns is around the Heights District Plan.

The Heights District Plan is incredibly important to the city of Vancouver on several levels, including the following:

A truly urban and inclusive neighborhood with improved amenities for all.
More public open space that doesn’t detract from the overall flow of people and vehicles.
Space for multiple modes of transportation, not just by car.
Turning the space left by the former Tower Mall into something truly interactive, immersive, and interesting.
More investment in the Heights District, which has not received the same level of investment compared to other parts of Vancouver.

The full plan document lives on the City of Vancouver website and is very interesting reading. Of course, Vancouver isn’t the only city trying to figure out how to balance competing interests in real estate development. There is still a need for retail space, even if it doesn’t look the same as the Tower Mall once did.

The Rise of Improved Retail Space

The Heights District Master Plan doesn’t shut out retail opportunities; if anything, it expands the reach of retail in a way that makes it feel like something that’s just part of the neighborhood. This gives plenty of new commercial real estate opportunities as long as the focus shifts accordingly.

This means that retail can no longer embrace just the “shopping mall” vibe so common to cities before revitalization; the space has to be in line with the new guiding principles of these master plan documents.

Leasing Retail Space

What if the focus shifts from acquisition to leasing? Finding retail space for lease in Vancouver WA is easier than ever, and property owners are looking for entrepreneurs and managers that will not only lease the space but carry a vision in line with the community.

That’s the underlying message behind initiatives like the Heights District Master Plan: it will take a few years to come to fruition, but the ultimate goal is to reduce the friction between residential and commercial spaces.

They can and should flow together, and that has an impact on retail leases as much as it does retail space for outright sale.

Those looking to expand into new retail spaces have to consider not just location, but the culture of the area. How walkable is the retail space for lease?

Is it easily accessible by public transportation? For people that do want to drive to go shopping, is there adequate and accessible parking? Is there space to address people with disabilities, even if they don’t use traditional assistive devices?

Retail Requires Partnership

One of the goals that stood out most when reviewing the Heights District Master Plan is that a key measure of success within the document is that jobs will increase in the area while maintaining a large amount of large small businesses.

What this signals is a desire for retail and other commercial initiatives to have a high degree of partnership.

A partnership isn’t just commercial real estate enthusiasts building connections; the community has to become engaged as well. This is also a strong way to return retail space for lease in Vancouver, WA into a profitable, productive space.

People can’t patronize something they aren’t aware of, but they also can’t patronize a place that isn’t connected to the spaces that they really care about.

Finding the right balance between impact, community, and for-profit endeavors isn’t easy, but it truly is rewarding. Remember that most city governments do publish their meetings online, making it easy to find good information and insights into a local market without having to spend money on paid databases or reporting.

The Road Ahead

It’s important to note that retail is only one aspect to the greater Vancouver area. Studying multiple asset classes within a local market is always best.

However, given the push and pull between local government and retail-oriented redevelopment projects, it’s never a bad idea to start with retail development and work your way out to other segments of the marketplace.

It can feel overwhelming at first to deep dive into local markets this way, especially when it comes to pulling in additional data. Researching a local market on a deeper level is key in order to ensure that any investment is made soundly and is primed for maximum potential.

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