You know the Lower Mainland’s housing crunch is real when even the people who make houses find it too pricey to stay in the city.
The solution for Westcoast Outbuildings?
Ditch North Vancouver in favour of moving to Squamish.
“The pressure on industrial real estate in Vancouver is tremendous,” said Geoff Baker, co-founder of Westcoast Outbuildings. “Affordability drives space, right? So, the cost per square foot was just so high in Vancouver for anything. And anything we did find had demolition clauses, or three or four-year lease terms and that sort of stuff.”
Demolition clauses give landlords the power to kick out tenants if the property is being demolished, renovated, or redeveloped. This would make people vulnerable to ‘renovictions.’
At one point, Baker said finding a good production facility in the Lower Mainland was like being a “unicorn hunter.”
So with the company’s lease ending, and with Vancouver prices and lease conditions being unaccommodating, Baker and his business partner Laura-Lee Normandeau decided to pack up their bags and relocate the entire company to the Sea to Sky.
As of December, the business, which makes modular structures, tiny houses and laneway homes, will be taking over the 89,183 square-foot ‘old car shop’ at the heart of the former BC Rail Yards, near the intersection of Government and Spit Road.
Modular structures are buildings made of separate modules which are pre-made then assembled together. Westcoast both constructs the modules and puts them together to make the final structure.
While Westcoast Outbuildings’ move from Vancouver was prompted by higher housing prices, so has much of its business.
Baker said laneway houses are one of the company’s most popular products.
He noted that rising real estate prices have prompted higher property taxes. As a result, people in the Vancouver area are trying to create rental space so tenants can help shoulder the mortgage bills.“Most of our clients buying laneways are looking for that additional revenue source,” he said.
About 95 per cent of the company’s business serves the Metro Vancouver region, as well as the Gulf Islands, and Baker anticipates this trend will continue.
However, he does see unique business opportunities in Squamish. “My ultimate goal would be to get into townhouses and start modular townhouses,” Baker said.
He said the company has been in talks with local developers, though he couldn’t provide further details.
Baker also added that Squamish’s development boom has been one of the biggest reasons why Westcoast Outbuildings decided to move to town.
“So we look at the number of permits and the volume of development that’s planned in Squamish per capita is much higher than what we see down here,” he said.
He also appeared open to the idea of constructing laneways for people in town, as homeowners here need help shouldering mortgage payments.
Baker estimates the company will be able to bring 20 to 25 new jobs to Squamish in direct hires for 2018. He also added there’d be a number of spinoff jobs as the company contracts work out.
