More than half of Vancouver’s BIAs have vacancy rate over 10%, data shows

A group representing B.C. businesses is warning that high crime rates and rising taxes are forcing many businesses to close or relocate outside of Vancouver.

The Business Tax Alliance says the City of Vancouver’s data shows that 12 of its business improvement areas, or 54 per cent, now have a retail vacancy rate that is considered unhealthy at over 10 per cent.

The group would like the City of Vancouver to halt any further commercial tax increases and take more action to stem street disorder.

“Our property tax has jumped 27 per cent, that’s $10,000 compared to last year,” Linda Hudson, owner of Kerrisdale Cameras, said.

“Somehow we’ll get by but there’s a lot of small businesses here, single owners, independent stores, they don’t even know what their property tax is going to be, they’ll find out from their landlords at their year in adjustment.”

Hudson said the appraiser told her that because there have not been recent sales in the area, they are basing it on current market rents.

However, she said the buildings are 100 years old so they have typically had lower rents as the expenses are so high to maintain the older buildings.

“All the issues that come with maintaining an old building get passed down to the tenants,” she said.

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Hudson said they did file an appeal with the city and were given a six per cent adjustment, along with other businesses in the area, but she described that as a “drop in the bucket.”

Paul Sullivan, a partner and regional leader at RYAN, a tax recovery software firm, told Global News that for some reason, Kerrisdale is seeing a disproportionate change in value relative to everywhere else.

“Other retail businesses in Kerrisdale up 30 per cent or more,” he said.

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Sullivan said a property tax increase is often tied to redevelopment potential but that is not the case in the Kerrisdale neighbourhood.

“We have small lots that aren’t viable to redevelopment so they ought to be valued at close to their existing use rather than some possible change of use based on a possible assembly with other properties making them viable for redevelopment,” he added.

A five to seven per cent vacancy rate is a healthy target range, according to RYAN.

“I think residents value their local independent businesses,” Sullivan added. “I think they would like to see some relief for them.”