Vancouver’s Mount Pleasant industrial area is undergoing a profound transformation.
For years, the old steel-plating, gadget-manufacturing, and garment-producing businesses had been leaving slowly.
But that speeded up three years ago when two things happened. Hootsuite, the city’s bigfoot digital company, moved into a building in the area. (It was a building zoned for office use, at 8th and Quebec, across the street from the conventional industrial zone.)
And the city tweaked the zoning to allow some office uses, as long as one floor of a building was retained for industrial.
Tech companies started to flood in and prices went up.
The Catalyst Effect
Hootsuite’s arrival acted as a powerful signal to the tech sector that Mount Pleasant could be cool. The company’s choice of location — a converted industrial building with high ceilings, concrete floors, and abundant natural light — embodied the aesthetic that many tech companies crave. It wasn’t just about cheap rent; it was about finding space that reflected the industry’s self-image as creative, innovative, and different from traditional corporate environments.
The neighborhood’s grittier industrial character actually enhanced its appeal. Tech workers appreciated the authenticity of working alongside welding shops and light manufacturing, even as those businesses were increasingly priced out. The contrast between old and new economy became part of the area’s brand identity.
The Zoning Experiment
The city’s zoning modification represented a careful attempt to balance competing interests. By requiring one floor of industrial use, planners hoped to preserve some manufacturing capacity while acknowledging economic realities. But the policy has proven difficult to enforce and monitor, with some questioning whether token industrial floors truly serve their intended purpose.
The challenge is that modern industrial needs don’t always align with traditional zoning categories. Food production, for example, might require commercial kitchen space that looks more like an office than a factory. Similarly, advanced manufacturing increasingly relies on clean, climate-controlled environments that blur the lines between industrial and office use.
The Pricing Pressure
My story last weekend looked at the changes and the struggle going on in the city, and the region, to figure out what industrial actually means these days and how to keep office users looking for cheap space from invading.
The rent increases have been dramatic. Industrial spaces that rented for $8-12 per square foot five years ago now command $15-20, putting them out of reach for many traditional manufacturers. This pricing pressure has forced some businesses to relocate to Surrey, Burnaby, or even further afield, potentially undermining the region’s manufacturing base.
The irony is that while the city celebrates its growing tech sector, it may be inadvertently destroying the diverse economic ecosystem that helps cities remain resilient during economic downturns.
The Definition Dilemma
In Vancouver, where council is particularly anxious to foster a tech industry, the debate is even more pointed.
The fundamental question is whether industrial land should be preserved for traditional manufacturing or can evolve to include knowledge-based industries. Some argue that tech companies are simply the new form of production — creating digital products rather than physical ones. Others contend that allowing office uses in industrial zones sets a dangerous precedent that will ultimately eliminate the city’s capacity for goods production.
This debate reflects broader questions about Vancouver’s economic future. Should the city prioritize high-paying tech jobs that generate tax revenue, or maintain industrial capacity that provides employment for workers without university degrees?
Regional Implications
The Mount Pleasant transformation is being closely watched across Metro Vancouver. Other municipalities are grappling with similar pressures as tech companies seek affordable space and traditional industries face competition from overseas manufacturers. The challenge is developing policies that can accommodate economic change while preserving essential industrial capacity.
The success or failure of Vancouver’s approach will likely influence how other cities manage their own industrial transitions in an increasingly knowledge-based economy.
