Head offices are heading out of town

 

 
 
 

The BC Lottery Corporation and Rogers Video are joining what appears to be something of an exodus of head offices from Richmond.

Last week, the News reported Microsoft is relocating its Richmond office to Vancouver, adding to a growing vacancy rate for office space here.

The News has since learned the head office for Rogers Plus is also closing its head office here. BCLC's head office is also relocating from Richmond to Vancouver.

But unlike the Microsoft and BCLC relocations, the move from Richmond by Rogers appears to be more of a division closure than a relocation, according to city hall.

"They're really just winding down their operation here," said city hall spokesman Ted Townsend.

Repeated calls to Rogers Plus were not returned. Not even the city's economic development office has been able to reach Rogers executives for an explanation for the closure, which is still in the works, but has learned that Rogers appears to be closing, or at least shrinking, its video retail operations.

If so, it is part of a North American trend, as video on demand, streaming and DVD-by-mail knocks the traditional video store right off the home entertainment map.

Earlier this summer, the last Blockbuster store in Richmond closed, leaving Rogers as the only player in Richmond.

The office at 10991 Shellbridge Way is the headquarters for Rogers Plus, which coordinates the video retail and rental division of the Canadian communications giant.

"Rogers is definitely getting out of that business and this is why the entity here that was supporting that distribution chain here is closing down," said Neonila Lilova, economic development manager for the City of Richmond.

The closure of the Rogers Plus' headquarters will leave another 30,000 square feet of vacant office space in Richmond. The relocation of BCLC's head office from Richmond to Vancouver -- something that has been planned for some time -- will leave another 70,000 square foot gap.

A recent market report by CB Richard Ellis estimates Richmond's office vacancy rate will soon hit 26 per cent.

"It is quite high," Lilova admits. "Richmond has always been high on the office vacancy scale compared to other communities, in good times and in bad times."

A lot of what Richmond is now seeing is restructuring and downsizing decisions made months ago during the 2008-2009 recession.

"While these businesses have left, we have added 73,000 square feet of office leases this year," Lilova said, adding the industrial sector in Richmond is quite strong.

nbennett@richmond-news.com

 
 
 
 
 
 
 
 

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