The Vancouver Plan Action while planning : Employment Lands & Economy Review: Update on Phase 1 & Next Steps
Employment Lands & Economy Review SCOPE & DELIVERABLES • A broad overview of Vancouver’s economy • Comprehensive data, engagement and integration with other initiatives • City-wide and sub-area level analysis • High-level policy directions to ensure an appropriate supply of land to support our economic goals • Foundational information for the Vancouver Plan and future economic development work 2
Integration with The Vancouver Plan We Are Here The Vancouver Plan
Council Recommendation A. THAT Council receive this project update report and initial list of economic and employment lands challenges and opportunities and direct staff to continue engagement with VEC, stakeholders, and others, including integration into the Vancouver Plan engagement processes, to identify high level policy directions and report back to Council in mid-2020 in parallel with the Vancouver Plan report back on challenges and principles. 4
What are we Hearing? Key Themes, Drivers & Disruptors Recognition of the Informal Economy Unaffordable Housing & Changes in Space Global Trade Uncertain Zoning & City Tenancy Processes Displacement Climate Space & Change Challenges Encroachment Increased Automation & AI Changing Inequality Rise of the Nature of Work Creative & Digital Importance of Economy the Non-Profit Changes in Sector Labour Barriers to Advantages Workforce Entry Regional Alternative Significance of Work Future of Vancouver’s Arrangements Industrial lands Economy Local vs. Global 5
What are we Learning? Initial List of Economic and Employment Lands Challenges/ Themes: Diversity of Job Opportunities, Workforce Supports & Economic Resiliency Job Space Affordability Viability of Small Independent Business & Capacity for Growth of Commercial Services to Serve a Growing Population Viability of City Serving Industrial Businesses Appropriate Capacity for Office & Hotel Growth 6
Important to Recognize Uncertainties and Take a Long Term View 2009 Council decision to restrict residential in CBD and preserve space for jobs: Strong demand for office today • < 3% vacancy • ~70% of office under construction in region is in Vancouver • 8.1M sq. ft. under development today (space for ~30,000 jobs) Office Space in Downtown West, 2019
PDS Economic Development Functions Research Land Economics Government to & Data Government Relations (including First Infrastructure Nations) Institutional & Planning Regional Alignment Capacity-Building Policy Through Development & Funding/Grants Financing Growth Implementation Monitoring & Public Strategic Planning Evaluation Engagement 8
Context • One part of a larger system • Local Global • Integrated sustainability framework • City of Reconciliation (2014) City of Vancouver Economic Development Initiatives 2019 Social Environmental Economic Cultural 9
Examples of Related Policy Planning Work
Current Goals for the Economy Advance Vancouver’s Decrease income disparity & inequity position in the regional and global economy Contribute to sustainable Integrates land use & prosperity transportation Showcases creativity & Lay foundation of innovation reconciliation, equity and resilience Grow the trade sector Increase range of opportunities for inclusion Grow capacity for trade of diverse residents substitution and the circular economy Support a broad range of Acknowledge the business sectors and a informal economy Ensure Vancouver’s diverse workforce businesses succeed across boundaries 11
How is the Project Structured? • Foundational research • Broad engagement E CONOMY • Internal/external alignment R EVIEW • Regional alignment • City objectives F URTHER W ORK T HROUGH THE VANCOUVER • Supply/demand PLAN T ECHNICAL • Forecasting A NALYSIS & • Scenarios E CON D EV ’ T T EAM & O THERS • To ensure supply P OLICY • To ensure range of jobs I DEAS • To ensure social, environmental, cultural & economic resiliency 12
Engagement Objectives
Who is Involved? 6500 Engagement Contacts Business and Workers Surveys Key stakeholder/subject matter expert interviews Special sessions with key sectors and economic stakeholders and businesses Walking tours & Site visits Ongoing dedicated project web site www.vancouver.ca/employment-lands providing updates, factsheets, engagement summaries External Advisory Group (EAG)
Who is Involved? External Advisory Group
What are we Hearing? Key Themes, Drivers & Disruptors Recognition of the Informal Economy Unaffordable Housing & Changes in Space Global Trade Uncertain Zoning & City Tenancy Processes Displacement Climate Space & Change Challenges Encroachment Increased Automation & AI Changing Inequality Rise of the Nature of Work Creative & Digital Importance of Economy the Non-Profit Changes in Sector Labour Barriers to Advantages Workforce Entry Regional Alternative Significance of Work Future of Vancouver’s Arrangements Industrial lands Economy Local vs. Global 16
What are we Learning? Initial List of Economic and Employment Lands Challenges/ Themes: Diversity of Job Opportunities, Workforce Supports & Economic Resiliency Job Space Affordability Viability of Small Independent Business & Capacity for Growth of Commercial Services to Serve a Growing Population Viability of City Serving Industrial Businesses Appropriate Capacity for Office & Hotel Growth 17
What are we Learning? Challenge Area / Theme : Diversity of Job Opportunities, Workforce Supports & Economic Resiliency 18
What are we Learning? Distribution of Jobs in Vancouver, 2016 Professional, technical, Primary industries; 1% and management; 16% Health care and social Transportation and assistance; 12% warehousing; 2% Wholesale trade; 3% Construction & utilities; 3% Finance, Insurance and Real Estate; 11% Manufacturing; 3% Administrative and support services; 4% Public administration; 5% Accommodation and food services; 11% Other services; 5% Retail trade; 10% Information, culture, Educational services; 6% entertainment; 8% Source: Statistics Canada
What are we Learning? Need to Maintain Diversity & Economic Mobility Source: Council Approved Community Economic Development Strategy 2016 20
What are we Learning? Examples of Key Economic Drivers
What are we Learning? Trends in the Central City of Vancouver are Different from the Region Metro Vancouver Increase/Decrease +23% +18% +31% +22% 0% +17% +17% +8% +37% +17% +22% +33% +18% -14% +5% +1% +16% +17% -9% -12% 22 Source: Statistics Canada 2016 Census: Jobs by NAICS (2 digit). Note that this data does not include jobs “with no fixed workplace address”.
What are we Learning? • Affordable housing Labour • Child care Force • Reliable transportation Supports • Education and workforce training • Viability of non-profit sector service provision 23
What are we Learning? Non-Profit Sector Plays A Key Role in the Economy • Contributes $3.3B to provincial GDP and accounts for 86,000 jobs in BC (community non-profits) • Supports workforce overall . For example: • Child Care • Mental Health Services • Employment Services • Assistance to Newcomers • Key challenges: • Lack of affordable or suitable spaces • Competitive disadvantage retaining skilled workers • Highly skilled work for less pay than in for- profit businesses (~75% female) • High turnover Social Enterprise Sector is Growing Quickly in BC 24
What are we Learning? Need for a Resiliency Approach • Equity is an Important Consideration in Future Work • Vancouverites struggling to make ends meet • Growing income disparity • ~20% of residents are living in poverty • Workers, Employment Lands & Economy are Vulnerable • Sea level rise/floods • Extreme weather • Forest fires • Major earthquake • Climate Emergency Response: • Big Move #1 ‘Walkable Communities’ • Big Move #2 ‘Active Transportation and Transit.’ 25
What are we Learning? Challenge Area/ Theme Job Space Affordability This issue has also been identified through the Culture|Shift report
What are we Learning? 27
What are we Learning? Job Space Rents are Increasing Industrial Rents Retail Rents $70.00 $70.00 $59.75 $60.00 $60.00 $47.96 $50.00 $50.00 +58% $40.00 $40.00 $30.00 $30.00 $22.86 +14% $14.91 $20.00 $20.00 +75% +46% $10.00 $10.00 Net Rent Additional TMI Net Rent Additional TMI $0.00 $0.00 2015 Q2 2015 Q4 2016 Q2 2016 Q4 2017 Q2 2017 Q4 2018 Q2 2018 Q4 2019 Q2 QTD 2015 Q2 2015 Q4 2016 Q2 2016 Q4 2017 Q2 2017 Q4 2018 Q2 2018 Q4 2019 Q2 QTD Rents: Average Market Monthly Rent $ / Sq.ft 28 28 Source: CoStar, Market Rent, Extracted Nov 15, 2019
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