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Woodfibre LNG Update: Pre-Construction Contract Awarded to Squamish Contractor
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(Posted on Apr 1, 2017 at 01:00PM by Michelle Bogle)
There is more news from Squamish, B.C. regarding the ongoing Woodfibre LNG facility. A pre-construction contract has been awarded to MATCON Environmental Ltd., a B.C.-based civil contractor.
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This contract marks the first phase of a multimillion-dollar site clean-up that Woodfibre LNG is undertaking to meet health, safety, environmental and maintenance obligations in anticipation of construction of the facility.
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Over the next few weeks, phase one of the project will begin on the former pulp mill lands, which will include site remediation by removing industrial debris, such as storage tanks and other abandoned equipment.
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“MATCON is pleased to be awarded this first pre-construction package for the Woodfibre site in Squamish, B.C.,†said Stephen Custeau, Managing Partner, MATCON Environmental Ltd. in a press release. “We are excited to be involved in this brownfield remediation project and look forward to delivering the project safely and on-time, while strengthening our relationships in the region.â€
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Future phases of pre-construction work are expected to commence in the second quarter of 2017, pending approval of required permits. This work is anticipated to require up to 25 on-site workers and will involve the removal of the pulp warehouse, contaminated soil and thousands of creosote pilings from the foreshore.
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The project is also expected to bring 650 jobs to the area at the peak of construction, and more than 100 jobs at the Woodfibre site, plus additional office administration positions in Squamish and Vancouver per year of operation.
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Aside from employment, major projects, such as Woodfibre, are transforming Squamish’s economy and fueling demand for real estate, especially within commercial asset classes. The area is poised for growth and our team of associates are keeping a close eye on the region.
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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 Fox, in our Vancouver office. You can also view our current listings by visiting Marcus & Millichap’s Property Search Portal.
Industrial and Institutional Projects Energizing B.C.’s Okanagan Region
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(Posted on Nov 6, 2016 at 02:00PM by Michelle Bogle)
According to the latest edition of British Columbia’s major projects inventory, the Thompson Okanagan region is home to 110 major projects worth $15 million or more and an aggregate value of $22.8 billion.
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Of these projects, more than 59 of them represent the lion’s share of the value – $14.7 billion or 65%. Many are long-term projects, but some are residential and resort developments with completion dates running through to 2040.
However, when those two groups are factored out, $3 billion remains – mostly infrastructure and institutional projects, such as the new RCMP detachment in Kelowna, the correctional centre at the Osoyoos Indian Band Development Corp.’s Senkulmen Enterprise Park in Oliver, hospital extensions and expansions at Okanagan College and Thompson Rivers University.
However, when those two groups are factored out, $3 billion remains – mostly infrastructure and institutional projects, such as the new RCMP detachment in Kelowna, the correctional centre at the Osoyoos Indian Band Development Corp.’s Senkulmen Enterprise Park in Oliver, hospital extensions and expansions at Okanagan College and Thompson Rivers University.
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As a result, the Okanagan is booming as industrial and institutional projects continue to energize the region. And, along with the large projects, there are also a number of smaller projects underway in the region, like wineries and commercial spaces.
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An increase in building permits supports this growth as well. In fact, building permit volumes in the Thompson Okanagan region have increased to $1.3 billion in 2015 from $897.6 million in 2011. This year, permit issuances rose 35.8% through August versus the same period a year ago to reach $1.1 billion.
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If you are in need of industrial or institutional assets in the Okanagan market, 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 portal to view active listings across British Columbia.Â
Film Industry Dominates Metro Vancouver Industrial Leasing
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(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.
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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% – 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.
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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.
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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
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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 – yet.Â
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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.
Squamish Nation Approves Pipeline for Woodfibre LNG
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(Posted on Jul 1, 2016 at 10:19PM by Michelle Bogle)
One week ago, Squamish Nation Chiefs and Council approved a new pipeline and compressor station that will provide natural gas to the Woodfibre LNG plant in Squamish, B.C.This approval was very important, as it is a key piece of the project, which will be built by FortisBC.Â
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The agreement comes after Squamish Nation’s own independent environmental review, which began more than two years ago.
The environmental assessment included 25 conditions for approving the LNG plant and the FortisBC pipeline extension. Nine of those conditions related to the FortisBC component of the project – specifically the location of the compressor station and the re-routing of the pipeline to avoid the Skwelwil’em Wildlife Management Area.Â
The environmental assessment included 25 conditions for approving the LNG plant and the FortisBC pipeline extension. Nine of those conditions related to the FortisBC component of the project – specifically the location of the compressor station and the re-routing of the pipeline to avoid the Skwelwil’em Wildlife Management Area.Â
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These two conditions were hot topics at the community meetings with many Squamish Nation members voicing concerns for the surrounding land and aquatic habitats.
As a result, FortisBC went back to the drawing board and selected another site near Mount Mulligan for the compressor station. They also agreed to re-route sections of its pipeline to avoid the Skwelwil’em Wildlife Management Area.Â
As a result, FortisBC went back to the drawing board and selected another site near Mount Mulligan for the compressor station. They also agreed to re-route sections of its pipeline to avoid the Skwelwil’em Wildlife Management Area.Â
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With these two conditions met, Squamish Nation Council approved the FortisBC EA Agreement.Â
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The Woodfibre LNG Project is a proposed natural gas liquefaction and export facility located at the former Woodfibre Pulp and Paper Mill, about seven kilometres southwest of Squamish.
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The Eagle Mountain – Woodfibre Gas Pipeline Project is an expansion of FortisBC’s existing Vancouver Island natural gas transportation system to provide service to the Woodfibre LNG Project. The project includes building about 47 km of pipeline between Coquitlam and the Woodfibre site.
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Major projects, such as Woodfibre, are transforming Squamish’s economy and fueling demand for real estate, especially within commercial asset classes. The former lumber town is now once again poised for growth and expected to draw an increased supply of labourers into the area.
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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 Fox, in our Vancouver office.
Woodfibre’s Impact is Proving Positive for Squamish’s CRE Industry
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(Posted on May 16, 2016 at 09:58PM by Michelle Bogle)
The Woodfibre LNG proposal in Squamish, British Columbia, has already lined up a potential sale for almost half of its planned output to a customer in China. This comes on the heels of the Ministry of Environment's approval, which the plant received last month.Â
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The potential sale is between Woodfibre’s Singapore-based affiliate, Woodfibre LNG Export Pte. Ltd., and the Guangzhou Gas Group Co. Ltd. The two companies have signed an agreement, which is expected to reach a 25-year deal for the sale of one million tonnes of liquefied natural gas from the plant.
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A contract, such as this, would see Guangzhou Gas take up to a 10% equity stake in the Woodfibre project, which would begin delivering gas starting in 2020. It also points to the increased interest of B.C.-produced liquefied natural gas with Asian countries.
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Major projects, such as Woodfibre, are transforming Squamish’s economy and fueling demand for real estate, especially within commercial asset classes. The former lumber town is now once again poised for growth and expected to draw an increased supply of labourers into the area.
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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 Fox, in our Vancouver office.
Strong Demand and Low Supply Keeps Vancouver’s CRE Prices High
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(Posted on May 12, 2016 at 10:41PM by Michelle Bogle)
Despite uncertainty in Canada's economy, a number of Vancouver’s real estate assets continue to receive strong interest with investors, especially in the industrial class.
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In fact, the Greater Vancouver Area continues to see a strong performance with industrial availability rates holding steady at 4.1%, despite 1.1 million square feet of newly created space at the beginning of the year.
As a result, demand for space in industrial properties has continued to match or exceed supply, leading to increased commercial real estate prices.Â
As a result, demand for space in industrial properties has continued to match or exceed supply, leading to increased commercial real estate prices.Â
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The low Canadian dollar, historically low interest rates, dropping energy prices and the belief that Canada’s industrial sector offers stable returns has made Vancouver highly attractive to foreign investors.
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This growth is also largely being driven by an increase in e-commerce, as demand for warehouse and distribution facilities continues to rise.
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Robust growth in this asset class in expected to continue to rise over the coming years. If an industrial real estate investment is in your near future, please contact our office to speak with one of our skilled advisors.Â
Industrial Real Estate Hits 15-Year High in Vancouver
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(Posted on Apr 18, 2016 at 07:53PM by Michelle Bogle)
Vancouver’s industrial real estate sector reached an all-time high in 2015. A total of 4.5 million square feet of industrial space was sold, making this the biggest increase the city has seen in 15 years.
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Growth in Vancouver’s industrial asset class is largely being driven by an increase in e-commerce. Cities like Vancouver, Toronto and Montreal have all been stimulated by a rapidly evolving e-commerce sector that has a high demand for warehouse and distribution facilities that are large in size, well-located and highly automated.
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With the low Canadian dollar, low energy prices and low interest rates, foreign investors – especially those from the United States – are setting their sights on Vancouver’s industrial sector at a fast rate.Â
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Robust growth in this asset class in expected to continue to rise over the coming years with more record breaking transactions in the books.Â
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If an industrial real estate investment is in your near future, strike now while the iron is hot and inventory still remains. For more information, please contact our office to speak to one of our skilled advisors.Â
Craft Beer Boom Causes High Demand for Industrial Space
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(Posted on Mar 26, 2016 at 01:00PM by Michelle Bogle)
There’s something big “brewing†in East Vancouver – a craft beer revolution is taking over the industrial parts of the area now known as “Yeast Vanâ€.
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This shift started to take root nearly three years ago when then province changed the liquor rules for craft breweries. Previously, beer lovers were only allowed to taste free samples and purchase one meager 12-ounce beer on the premises.Â
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However, the new rules changed these archaic ways – patrons are now allowed to purchase product and pints while visiting their favourite craft breweries. A much-welcomed change for the local economy and a change that has beer connoisseurs “hoppingâ€.
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Today, there are 23 craft breweries open, or about to open, in Vancouver – 14 of which opened their doors in the last three years since the legislation change. All are thriving and the industry as a whole is experiencing much growth as the demand for local, quality beer soars.
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As the demand rises, so does the need for available industrial space for prospective brewers looking to quench the thirst of local beer lovers. At minimum, these brewers are in need of industrial space around 5,000 sq. ft., but that number has been known to climb between 15,000 and 30,000 sq. ft.Â
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And, the competition is fierce in the emerging heart of East Vancouver’s brewing district – when space becomes available, it’s often sought after by a number of eager groups ready to invest in this growing market.Â
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The timing couldn’t be better for commercial real estate investors looking to get into East Vancouver’s industrial sector. To learn more about available opportunities, please contact our office to speak with one of our skilled advisors.
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