Construction Continues on Vancouver’s Nexus Office Building Despite Setbacks

Construction is progressing on the Nexus office building in Vancouver, despite financial challenges and the project’s receivership status. Local developer Keltic Development confirmed that work continues on the nearly complete, 10-storey building located at 220 Prior St. This facility will encompass approximately 100,000 sq. ft. of office space dedicated to medical and research purposes, strategically positioned adjacent to the future St. Paul’s Hospital campus.

The project faced uncertainty after Masimo, a U.S.-based medical technology company, withdrew its plans to occupy the entire building, a decision that became public in January 2025. At that time, construction had reached the seventh-floor concrete pour. Keltic Development shifted its focus to attracting new tenants following Masimo’s exit. A spokesperson for Keltic stated that the cancellation had “immediate and material impacts” on construction financing, which prompted the receivership process initiated by Shape Capital in August 2025.

The overall landscape for new office buildings in Metro Vancouver has been challenging since the onset of the pandemic, with Nexus being one of the few projects still moving forward. Keltic secured initial funding after Masimo committed to the project in 2022, which allowed for groundbreaking that summer. Following Masimo’s withdrawal, Shape Capital reduced the loan facility from $85 million to $65 million, mandated a $10 million paydown on the outstanding balance, and instructed Keltic to self-fund the project during this transitional period.

Keltic has reportedly invested over $20 million in the Nexus project, covering land acquisition, design, applications, and soil remediation. Despite the financial hurdles, Keltic’s spokesperson emphasized the company’s commitment to transparency and responsible management practices in the face of challenging market conditions. The spokesperson noted, “These circumstances placed additional pressure on project cash flow. Keltic, like many in the real estate industry, is facing a difficult environment shaped by external market and financing conditions.”

While the project has faced hurdles, it has successfully completed three office unit sales on the sixth floor, although one was rescinded due to the receivership. Currently, five letters of intent are being finalized, with negotiations also underway for an additional six units, though these discussions have been complicated by the ongoing receivership process. Commercial real estate firm CBRE is actively marketing leasing opportunities for Nexus.

As of September 8, 2025, construction at the site remains active, with both Keltic and Shape Capital determining that completing the building is essential to mitigate losses. Keltic funded the project in early 2025, allowing work to continue through at least July. The construction site features a nearly completed glass facade and ongoing interior work, designed by the local architectural firm Musson Cattell Mackey Partnership.

The Nexus building is designed for premium AAA-class office space, originally intended for medical research, but also includes options for creative and light industrial uses, as well as ground-level retail and restaurant units.

Despite the ongoing uncertainty in Vancouver’s office market, analysts predict a potential resurgence in demand for office space in the area due to the impending $2.8 billion St. Paul’s Hospital project, expected to open in 2027. Providence Health Care has begun construction on a second building, the $638 million Clinical Support and Research Centre, which will add 370,000 sq. ft. of clinic and research office space, expected to be completed by 2028.

The future of the Nexus office building now hinges on the successful completion and leasing of the remaining units, alongside the broader economic recovery of the commercial real estate sector in Vancouver.