Businesses say they are struggling to keep their doors open in Wesbrook Place.
Billboards at either end of the neighbourhood claim that Wesbrook is home to over thirty businesses; however, recent closures have reduced that number to about twenty. According to some local proprietors, the foremost cause of these closures is rising commercial rents.
In July, both Rogers’ Chocolates at 3312 Shrum Lane and Lucky’s Exotic Bodega at 3335 Westbrook Mall shut their doors permanently, and Poke by Ryuu at 3358 Wesbrook Mall ceased operations in late August. The expiry of Rogers’ existing lease meant that the chocolatier faced a rent increase that narrowed its profit margins too significantly to remain open, a source with the business told The Campus Resident.
Unlike residential rental rates, commercial rent increases are unregulated in the province. Residential rent increases are currently capped at 2.3 per cent per year, but a number of businesses in Wesbrook said that upon the expiry of their leases, they anticipate rent increases between 25 and 33 per cent.
Chantal Chau, Retail Operations Manager at Murchie’s Tea & Coffee, said they faced a dilemma when it was time to renew their lease a few years ago. “We were hesitant to do so because of the significant increase in rent, but we chose to move forward with it in hopes of building a strong presence and positive relationship with the Wesbrook community.” That rent increase was 25 per cent, on rent calculated per square foot.
Some residents were surprised to find in mid-July that Lucky’s Exotic Bodega had shuttered overnight, seemingly without warning. A notice appeared initially on the inside of the door stating the business hoped to re-open at a later date.
A copy of an eviction notice obtained by The Campus Resident states that Lucky’s had subleased its storefront in Wesbrook from a numbered company. UBC Properties Trust served that intermediary with an eviction notice due to tens of thousands of dollars in unpaid back rent.
The empty storefronts that once housed Roger’s, Lucky’s, and Poke by Ryuu now join the former home of Freshii (3351 Wesbrook Mall), which has been vacant and available to rent for nearly a year.
The Campus Resident reached out to the leasing agent to inquire what the asking rent is for the former Freshii space, but was told rates are not disclosed to the general public.
The summer is generally a slower and less profitable time of year for businesses in Wesbrook since much of the student population leaves the area. Local business representatives said foot-traffic is where most sales come from for businesses in Wesbrook, rather than customers passing through the village.
Chau pointed out that one of the billboards that greets motorists entering Wesbrook Place only features a handful of local businesses, some of which are no longer in operation. She also noted that a visitor would already have to be heading toward Wesbrook to see the billboard.
“It would be beneficial for all companies if Wesbrook advertised farther,” said Chau. “Since UBC property is isolated by a forest, it would be beneficial to have advertising farther out, such as on Blanca.”
Saleem Ahamed, Director at Doughgirls Comfort Kitchen & Bakeshop, was sanguine about how business is going, explaining that the business sees a healthy 300 customers per day and 400 on weekends. With three years until the bakery’s lease is up for renewal, he is concerned about the future but confident that he can negotiate from a position of strength.
“I consider us an anchor store here,” Ahamed said. “It wouldn’t benefit Wesbrook to see us go.”
Residential rents also affect businesses
The relatively high cost of residential rent in the university neighbourhoods is also adversely affecting local businesses.
Employees at some businesses—particularly cafes like Blenz, Murchie’s, and Doughgirls—noted that several of their regular customers had moved away from campus because they were able to find cheaper comparable housing in other neighbourhoods such as Kitsilano or West Point Grey.
Employees at ShareTea, and Rogers prior to its closure, also remarked that they would have liked to live on campus and closer to their jobs, but housing costs are prohibitively expensive for them. Every customer service worker interviewed said they lived elsewhere and commuted to UBC.
Given the isolation of campus from the rest of the city, many owners who spoke to The Campus Resident said having a prosperous business sector is necessary to maintain a sense of community here. And each of the proprietors interviewed expressed their desire to remain on campus and contribute to its growth.
“Businesses like ours contribute to the vibrancy and livability of the neighbourhood,” said Kim Scarrow of Havyn Hot Studios, a hot yoga and pilates studio located at 3378 Wesbrook Mall. “We’re hopeful that, as the community continues to evolve, UBC Properties Trust will work with local businesses to ensure that we can thrive alongside the growth of the neighbourhood.”
ERIC WILKINSON IS A POSTDOCTORAL FELLOW IN THE DEPARTMENT OF PHILOSOPHY AT UBC. HIS REPORTING HAS APPEARED IN BRIARPATCH, CANADIAN DIMENSION, AND PEACE MAGAZINE, AMONG OTHER OUTLETS.