Do Breweries Create Residential Neighbourhoods or Do Residential Neighbourhoods Create Breweries?
Business In Vancouver recently published an Article outlining the success of New Westminster’s Brewery District but the success is not the story: it’s how it was achieved. Instead of sticking to the established norm of focusing on residential spaces to drive a need for commercial tenants, the developer focused on large retail tenants and office tenants, which created an attractive residential neighbourhood.
When deciding on ideal locations for new breweries, the trade-off between base rent and location (i.e. proximity to residential neighbourhoods, traffic, etc.) might not be as straightforward as it once was, as evidenced by the success of the Brewery District. Of course, such a tradeoff is not without risks, but the idea that developers may be looking to bring breweries and other commercial tenants in at an early stage to help entice the residential market may be an opportunity for breweries looking to relocate or set up shop.
As an aside, although its name may be misleading (as of the writing of this article, no breweries are listed on the Brewery District’s website as tenants), as the BIV article outlines, the Brewery District is named after the Labatt brewery which previously occupied the site.