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Real Estate News for Vancouver
Investors Quick to Arrange Capital in Vancouver’s Industrial Sector Amongst Rent Gains
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(Posted on Nov 14, 2018 at 08:23PM by Michelle Bogle)
According to a Marcus & Millichap Industrial Research Market Report (Second Half 2018), investors are rushing to deploy capital in Vancouver’s industrial sector amid substantial rent gains.
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What’s driving this flurry is the continued growth and attraction of residents into the metro area, which is also impacting consumption trends, as well as motivating retailers, logistics firms and other companies to expand their operations into the area.
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Most recently, Delta and Surrey have become centres of activity due to their proximity to the U.S. and major thoroughfares into Vancouver. Amazon also just announced a lease agreement for a new build in Delta as the company grows its e-commerce network to meet the needs of a tight market. Walmart is planning to build a cold-storage facility in Surrey, as well, to support 60 stores throughout B.C.Â
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With tenant demand remaining strong across the Greater Vancouver Area, vacancy rates are plummeting. Specifically, in the second quarter, they fell to 2.9 percent, supporting an 8.8 percent increase to the average rent, which equates to $10.16 per square foot. The availability of midsize space is even lower, which is making it much harder for companies to find industrial space within the 15,000 and 30,000 square foot range. Developers also can't meet demand with such limited land opportunities.
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To learn more about the state of Vancouver’s industrial asset class, please read the full report on the Marcus & Millichap website.
Should you have questions or would like additional information, feel free to contact our Vancouver office to speak with a commercial real estate advisor.
Should you have questions or would like additional information, feel free to contact our Vancouver office to speak with a commercial real estate advisor.
Industrial News: Ironworks Brings New Life to Former Foundry Site
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(Posted on Mar 7, 2017 at 09:18PM by Michelle Bogle)
Vancouver’s historic Terminal City Iron Works will be getting a new lease on life thanks to Conwest Group.Last week, the company hosted a ground-breaking ceremony to mark the construction of Ironworks – a two-building, 200,000 sq. ft. industrial-commercial project on the site of the former foundry.Â
The land, which is located at the north end of Victoria Drive and was once used to make heavy-duty waterworks equipment, war effort materials and even TV and movie productions, will now be home to dozens of post-industrial firms, like software companies and craft brewers, employing up to 500 workers.
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With the ground-breaking underway, it is expected that the development will be complete by the end of 2018. The two- and three-level buildings will cover a full city block between Pandora and Franklin Streets.
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The project is valued at $90-million and is being sold off in strata units, with half of them already sold. The building will include showroom, warehouse, wholesale and office space. It is being designed by Taylor Kurtz Architecture and Design.
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Many commercial real estate insiders are keeping a close eye on this unique project, especially as industrial space across Vancouver remains scarce. If Ironworks proves to be a success, it could encourage other developers to follow suit – and perhaps even go a step further by combining office, industrial and residential projects to create more vibrant neighbourhoods.Â
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The WorkSpaces at Strathcona Village are a prime example – its three-tower, 350-unit complex blends 280 condos, 70 social housing units, 12,000 sq. ft. of office space and 60,000 sq. ft. of industrial-retail units. The Workspaces are currently under construction with occupancy slated for later this year.
If you are in need of industrial-commercial space, our team at Marcus & Millichap Vancouver can help. To speak with one of our advisors, please contact our office by clicking here or visit our Property Search Portal to view active listings across British Columbia.Â
If you are in need of industrial-commercial space, our team at Marcus & Millichap Vancouver can help. To speak with one of our advisors, please contact our office by clicking here or visit our Property Search Portal to view active listings across British Columbia.Â
New Strata Industrial Project Coming to Kelowna B.C.
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(Posted on Jan 18, 2017 at 07:10PM by Michelle Bogle)
Vancouver-based developer PC Urban has announced plans to build the first strata industrial building in Kelowna in more than five years. This news comes as the developer is finalizing the purchase of the industrial site at 1655 Dilworth Drive – the former home of the now-defunct Enterprise Steel Fabricators.Â
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The property is located at the corner of Enterprise Way and Dilworth Drive, just one block from Highway 97 — the main link between the North, Central and South Okanagan. According to B.C. Assessment, 1655 Dilworth is valued at $7.125 million.
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Once the sale is final, PC Urban plans to redevelop the eight-acre site into a commercial strata business complex zoned for light industry. The company is already engaged in talks with the City of Kelowna regarding their plans.
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The units would range from 2,700 sq. ft. to 4,200 sq. ft. and would be built to suit industrial businesses with office and retail components with bay doors, windows and mezzanines. PC Urban is currently doing market research to determine how many units the market could handle at the site.
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For now, pricing is not fully determined; but, in an interview with the Vancouver Sun, Garry Fawley, Principal with PC Urban, was quoted as saying that, "the price of the small bay units would likely start in the high $200s; meaning, a 3,000 sq. ft. unit priced at $280 per sq. ft., would sell for approximately $840,000." Â Â
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Construction is anticipated to begin in approximately eight months and take one year to complete.
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This new strata industry project is already generating a lot of buzz and excitement, especially from small business owners and entrepreneurs who have been chomping at the bit to purchase commercial real estate as a place to conduct business. The timing for the build couldn’t be better; the current supply of strata industrial space is very limited in Kelowna, while the demand remains very strong.
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If you or someone you know is in need of light industrial space in Kelowna, Vancouver or other parts of the Lower Mainland, please contact Marcus & Millichap to speak with one of our highly skilled commercial real estate advisors. You can also visit our Property Search Portal to view active listings across British Columbia.Â
Squamish’s Woodfibre Receives Authorization to Proceed
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(Posted on Nov 7, 2016 at 03:54PM by Michelle Bogle)
On Friday, November 4, 2016, Woodfibre LNG Limited announced that its parent company Pacific Oil & Gas Limited, which is part of the Singapore-based RGE group of companies, has authorized the funds necessary for the project to proceed.
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Woodfibre LNG Limited is proposing to build a new 2.1 mtpa liquefied natural gas (LNG) processing and export facility using electric drive at the former Woodfibre Pulp Mill near Squamish, British Columbia.Â
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This decision follows the province’s Climate Leadership Plan initiative, which encourages the use of electricity in the natural gas industry in B.C. Electricity from B.C. Hydro is more than 90% clean renewable energy and can help create the cleanest LNG in the world.
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“At Woodfibre LNG Limited, building a project that is right for Squamish and right for B.C. is our priority,†said Byng Giraud, Country Manager and Vice President of Corporate Affairs, Woodfibre LNG Limited. “[This] is why we made the decision to use electricity to power our facility, instead of natural gas, following community concerns over air quality. The province’s decision to offer a competitive electricity rate for proponents that choose eDrive technology allowed this ‘go forward’ decision to happen.â€
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It is anticipated that Woodfibre will attract a growing workforce to Squamish with an estimated 650 construction jobs per year during the two-year building period, which could begin as soon as 2017, plus 100 full-time jobs to the Woodfibre site during operation. A dozen or so administration-related position will also be seeking qualified candidates.
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As a result, the former lumber town is now once again poised for growth, which should play a significant role in Squamish’s commercial real estate sector – a sector that our team at Marcus & Millichap Vancouver is keeping a close eye on.
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For more information about commercial real estate activity in the Sea-to-Sky corridor, including Whistler and Squamish, please contact our area expert, David C. Fox at (604) 675-5222 or view his associate profile by clicking here.
The WorkSpaces at Strathcona Village: Blending Home with Industry
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(Posted on Nov 4, 2016 at 05:00AM by Michelle Bogle)
Sales have begun for the commercial component of a mixed-use residential-industrial project on East Hastings Street – a project that is garnering worldwide attention for its one-of-a-kind offering that blends residential homes with industry.
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Comprised of more than 60,000 square feet of industrial-retail flex and office space, the WorkSpaces at Strathcona Village are distributed over two floors and provide maximum flexibility and accessibility for businesses seeking high-quality premises.
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With CD-1 zoning, there are a number of commercial operations that will be able to capitalize on the ever-growing Strathcona neighbourhood. The WorkSpaces are perfectly suited for artists’ studios, product showrooms, digital and technology companies, light manufacturing, cafes, tasting rooms and the like.
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There are a variety of unit sizes available, ranging from 997 sq. ft. to 6,781 sq. ft. with ceiling heights between 19’ to 22’. All units also offer modern west coast design with great street front exposure.
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Occupancy is currently slated for summer 2017 and comes at a time when the city is struggling with a well-documented shortage of strata industrial space. And, as vacancies continue to tighten and rental rates increase across the Lower Mainland, competition for strata industrial assets will also continue to grow, especially from entrepreneurs, start-ups and light manufacturers.Â
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If you are in need of industrial-retail flex or office space, our team at Marcus & Millichap Vancouver can help. To speak with one of our commercial real estate advisors, please contact our office by clicking here or visit our Property Search to view active listings across British Columbia.Â
Industrial Condos: An Alternative for Weary Residential Property Investors
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(Posted on Sep 22, 2016 at 02:18PM by Michelle Bogle)
Real estate investors spinning from the recent dive in Metro Vancouver’s condominium sales may want to consider another asset class: industrial strata.
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It offers weary residential investors a chance to get into the commercial market, where the price per square foot is much healthier, as is the demand for the space. Industrial investors are also exempt from B.C.’s Residential Tenancy Act regulations and the 15% foreign buyer tax on Metro Vancouver residential real estate.Â
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This year, the average price of industrial space in East Vancouver hit $596.50 per square foot, soaring 50% higher than in 2015. This compares with Vancouver condo apartment prices, which have increased about 30% in the last year.
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In terms of vacancy rate, Metro Vancouver’s industrial vacancy is the lowest in Canada at 1.5% with Calgary (6.6%), Edmonton (6.3%) and Toronto (3.3%) following behind.
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Vancouver industrial building per-square-foot prices now range from $189 to $824, with industrial land in the city selling for an average of $386. And, since Metro Vancouver industrial rents are the lowest in Western Canada, they could be set for an increase.
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Having said this, don’t you think it’s time to consider investing in Vancouver’s industrial condo market? At Marcus & Millichap Vancouver, we think it is. To learn more, please contact our office to speak with an associate. Time is of the essence – don’t delay!
New Manufacturing/Office Building Proposed for East Vancouver Site
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(Posted on Sep 17, 2016 at 01:00PM by Michelle Bogle)
As industrial and office properties continue to be in short supply across the Lower Mainland, the City of Vancouver recently received a development application for a new industrial-zoned property located in the Strathcona area of East Vancouver.Â
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The plan is for an 11,616 sq. ft., I-2 zoned site on 1157 Parker Street. The developer, Yamamoto Architecture, is looking to build a new four-storey, mixed-use building on the site.
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The proposal includes the following:
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• 23,198 sq. ft. of manufacturing uses on first, second and third floors
• 11,650 sq. ft. of general office uses on third and fourth floorsÂ
• Total building area of 34,848 sq. ft.
• Total density of 3.00 FSR
• Two levels of underground parking
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You can view the application in its entirety by clicking here.
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New commercial builds offering manufacturing, industrial and office spaces are in high demand across Vancouver and beyond. Should this development receive approval, it is sure to cause a stir with eager entrepreneurs, start-ups and manufacturers in dire need of space within the Lower Mainland.
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To stay abreast of proposed developments and other commercial real estate investment opportunities, please ‘like’ and ‘follow’ Marcus & Millichap Vancouver on Facebook or contact our office to speak with a broker.
Industrial Demand is Emerging from B.C.’s Film and TV Production Industry
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(Posted on Jun 17, 2016 at 01:00PM by Michelle Bogle)
While logistics and distribution companies remain a key driver of industrial growth in Vancouver, additional demand is emerging from the province’s well-established film and television production industry.Â
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According to recent industry reports, direct spending on film and television production in British Columbia surpassed $2 billion in 2014, which makes the province the third-largest production center in North America.Â
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Vancouver is already home to a number of studios, including Mammoth Studios, Vancouver Film Studios, North Shore Studios, Ironwood Studios, Bridge Studios and Canadian Motion Picture Park. As demand from U.S.-based production companies has exceeded the local studio infrastructure, film and television production groups are now signing some of the most impressive industrial leases in the area.
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While leasing industrial space to production companies is not new, the current size of the leases and associated terms are. Once an industry dominated by month-to-month leases, now many production companies are signing on in years. The rental market for industrial film and television space has also started to expand from within Vancouver to parts of surrounding Surrey and Coquitlam.Â
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This renewed source of demand for industrial space is having a direct impact on the market. For other smaller tenants looking to secure industrial space, they are presented with fewer options; many commercial landlords are enticed by the higher rents that production companies are willing to fork out for more permanent leases. As a result, demand in industrial submarkets south of the Fraser River and Pitt Meadows is growing.
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With the weakened loonie, it is anticipated that more production studios will be migrating north to Canadian soil in search of industrial space in our region. To stay abreast of investment opportunities in this competitive asset class, please contact our Vancouver office to speak with one of our advisors.
You can also view our current commercial real estate listings by clicking here.
You can also view our current commercial real estate listings by clicking here.
Industrial Demand Strengthens as Vacancies Tighten and Lease Rates Increase
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(Posted on May 31, 2016 at 05:03PM by Michelle Bogle)
Increased demand from Metro Vancouver’s industrial commercial real estate market had a ripple effect that tightened vacancy rates to near record lows this spring and lifted rental rates throughout the region after years of sluggish performance.Â
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This follows unseen levels of property absorption in 2015 and early 2016, which depleted much of Vancouver’s new supply of industrial space that was delivered within the last two years. As this supply was depleted, vacancy rates lowered to 2.8% this spring, versus the 4% of spring 2015.Â
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This drop marks the first time that regional industrial vacancy rates have dropped below 3%, which last occurred in the fall of 2008.Â
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For tenants currently looking for industrial space in Metro Vancouver, industry experts are suggesting that they will likely have to wait until mid-2017 for a few key developments to reach completion in Surrey, Delta and Pitt Meadows.Â
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Even still, the result will be that vacancy rates will remain under intense pressure as supply continues to keep up with the growing demand from logistics and distribution companies, as well as the film and television industry.
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For more information regarding Metro Vancouver’s industrial asset class, please contact our office to speak with one of our advisors.
Condo Boom Takes Over Vancouver’s Industrial Sector
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(Posted on May 10, 2016 at 07:39PM by Michelle Bogle)
A new complex of industrial condo-style units was recently released in Vancouver and has proven highly attractive to small business owners and entrepreneurs in desperate need for workspace near the heart of the city.
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Construction hasn’t even begun on the three-building IntraUrban development, located on Laurel Street near Cambie Street and S.W. Marine Drive. However, the first phase is already more than half sold out and the development is still within the presale stage.Â
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So far, architect and engineering firms, tech start-ups, wholesale and construction businesses, and bakeries have purchased units. Investors are showing interest too, which will mean future rental opportunities.
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In Vancouver, industrial land prices have risen steadily and are the most expensive in the region. This is largely due to limited land supply and high demand for locations with easy access to customers, suppliers and skilled labourers.
As well, industrial land in the Lower Mainland is diminishing. In fact, Vancouver has seen a 30% drop in its supply of industrially zoned land. As a result, industrial tenants have had to reluctantly look outside of the city limits for space.Â
As well, industrial land in the Lower Mainland is diminishing. In fact, Vancouver has seen a 30% drop in its supply of industrially zoned land. As a result, industrial tenants have had to reluctantly look outside of the city limits for space.Â
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Developments, like IntraUrban, address this challenge and offer business owners and investors the opportunity to diversify holdings from traditional residential or commercial real estate ownership. Its location also can’t be beaten with downtown Vancouver just 20 minutes away.
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Construction will commence in early 2016 for occupancy in Fall 2016.
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For more information on industrial condo-style investment opportunities within Vancouver, please contact our office to speak with one of skilled advisors.
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