Vancouver’s Nexus Office Building Construction Continues Despite Setbacks

Construction continues on the Nexus office building at 220 Prior St. in Vancouver, despite financial challenges and a recent receivership. Local developer Keltic Development confirmed that work is ongoing at the nearly complete 10-storey structure, which will provide 100,000 sq. ft. of medical and research office space. The building is strategically located near the future St. Paul’s Hospital campus and aims to meet the growing demand for healthcare facilities in the area.

The project faced significant setbacks when U.S.-based medical technology company Masimo withdrew its plans to occupy the entire building, a decision that was reported in January 2025. Construction had already progressed to the concrete pour of the seventh-floor slab at that time. Keltic Development stated that Masimo’s exit resulted in “immediate and material impacts” on the project’s financing, which ultimately led to its receivership process initiated by Shape Capital in August 2025.

Keltic Development had initially secured a loan of $85 million from Shape Capital, a subsidiary of Shape Properties, which provides financial support to developers. Following Masimo’s withdrawal, the loan was reduced to $65 million, and Keltic was required to repay $10 million immediately. This shift required the developer to self-fund the project, placing additional strain on its cash flow.

The site of Nexus has been under development since Keltic acquired it in 2021, investing over $20 million in land acquisition, design, and soil remediation. Despite the challenges, Keltic remains committed to completing the building, with a spokesperson stating, “We remain committed to acting responsibly, transparently, and in good faith,” highlighting the need for support from government and financial partners to advance real estate projects.

As construction progresses, Keltic has completed three office unit sales on the sixth floor; however, one of these sales was rescinded due to the receivership. Currently, there are five letters of intent in the signing process and another six units in discussion, although negotiations have faced delays. CBRE, a commercial real estate firm, is actively marketing the project’s leasing opportunities.

The construction site has shown visible activity, with the glass facade nearing completion and interior work underway. The building’s design, conceived by local architectural firm Musson Cattell Mackey Partnership, includes premium AAA-class office space, areas for creative and light industrial use, as well as ground-level retail units.

Despite the current downturn in demand for office space attributed to ongoing economic challenges and remote work trends, analysts express optimism for the future. The imminent opening of the $2.8 billion St. Paul’s Hospital, expected to complete in 2027, will significantly bolster demand for office space in the area. Additionally, Providence Health Care has commenced construction on a $638 million Clinical Support and Research Centre at the campus, set to be completed by 2028.

As Vancouver’s commercial real estate landscape evolves, the Nexus office building stands as a testament to resilience amid financial turbulence, with Keltic Development determined to see it through to completion, facilitating the growth of essential healthcare infrastructure in the region.