Social

commercial real estate blog vancouver bc, commercial real estate vancouver bc

General Commercial Real Estate Topics

View All Blog Posts

Home

Film Industry Dominates Metro Vancouver Industrial Leasing
Tags:

vancouver bc commerical broker commercial real estate services local vancouver commercial real estate service office vancouver bc information blog commercial real estate properties vancouver commercial real estate services vancouver bc

(Posted on Sep 12, 2016 at 02:33AM by Michelle Bogle)

According to a recent report, movie and television producers have leased almost 30% of industrial space in Metro Vancouver in the past year, which equates to approximately 1.5 million square feet.

The unprecedented demand from the billion-dollar B.C. film industry has helped drive the Metro industrial vacancy rate to an all-time Canadian low of 1.5% â€“ a move that is completely changing the face of the industry, thanks to the high demand for short leases and an eagerness to pay above-market rates.

Traditionally, industrial tenants sign three, five or 10-year lease agreements. But, due to the nature of filming schedules, most production companies only require studio space for about six months. As a result, TV and film companies are now opting to pay full lease rates or, in some cases, even up to $1 more per square foot, and signing two-year agreements to secure the space. Most will hold the site for a second shoot or sublease to another film company.

In terms of building specs, film producers are typically attracted to industrial sites with high ceiling heights and no-column open warehouses of at least 40,000 square feet. This type of commercial space is very similar to what retail/wholesale distributors and logistics/transport companies are seeking, thus driving industrial lease competition through the roof.Â

Currently, there is five million square feet of new industrial space planned or under construction in Metro Vancouver, but none are specifically purpose-built for the film industry â€“ yet.Â

At Marcus & Millichap Vancouver, our team of advisors has a close eye on the B.C. film industry and the growing demand for industrial space. To learn more about investment opportunities across the Lower Mainland, please contact our office to speak with a broker.