The plan for a new Audi dealership in Toronto’s suburban Richmond Hill upends the classic concept of car lot. Rather than sprawling rows of shiny new models, preowned vehicles and service bays along the highway, this dealership will be in a corner of a twin-tower residential complex. The showroom will share a green roof with the residences and its service department will be on the fourth level of underground parking.
It’s part of a rapidly growing trend to rethink dealerships that typically covered big parcels of land, says Stefanie Siu-Chong, principal at architecture firm BDP Quadrangle. “Urban land is being priced out of reach and online shopping makes it less important to have a whole inventory on hand.”
Dealerships are investing in new, more attractive showrooms to entice buyers in to kick the tires and make a deal as car shopping online becomes more convenient, Ms. Siu-Chong says. In 2022, 15 per cent of new car purchases in Canada were made online, up from 12.0 per cent in 2021, according to data from goodcarbadcar.net.
But overall sales are growing. A TD Canadian Automotive Outlook report in May projects vehicle sales in Canada will grow by 9.6 per cent in 2024 – reaching 1.9 million units. Moderation is expected through the year as the economy slows and the postpandemic bounceback recedes, but the study anticipates that sales will return to the prepandemic levels of around two million in 2025 as interest rates are expected to be lowered.
Meanwhile, off-site inventory storage saves money and frees up space. “The more you can find mixed uses for the land, the more successful a dealership project will be,” she advises.
BDP is designing the complex for Dilawri Group of Companies, Canada’s largest auto group, with 82 franchised dealerships. The Richmond Hill site is currently occupied by several low-rise shops along Yonge Street, surrounded by parking lots. “We’ll have about 55,000 square feet of dealership and 300,000 square feet of residential in 370 units. The buildings are connected, and we are using the green roof of the dealership as the outdoor amenity of the building.”
The more you can find mixed uses for the land, the more successful a dealership project will be.
— Stefanie Siu-Chong, principal, BDP Quadrangle
Another notable example of intensification of uses is Downtown AutoGroup’s Autoplex in Toronto, a mixed-use development on five acres of land along the Don Valley, south of Queen Street. The new complex of the group founded by Shahin Alizadeh, president and chief executive officer, hosts 10 auto sales and service facilities representing 12 brands, including Toyota, Ford/Lincoln, Hyundai/Genesis, Nissan/Infiniti and Chrysler, Jeep, RAM and Dodge, in connected buildings and has a 120,000-square-foot warehouse off site to house inventory.
The Autoplex is part of the new Riverside Square district, with the dealerships anchoring a mixed-use development, which includes 900 new residential units, as well as street-level retail shops and public space. Parking and service facilities are located below-grade.