Surrey is getting a big bump in industrial lands, thanks to a large project being built in Cloverdale.
Metro Vancouver has long been warning of a tremendous squeeze on industrial land in the region, and a huge drop in industrial vacancy rates.
IntraUrban Crossroads is planning to transform more than 10 acres at 176 Street and Highway 10 into what the firm is calling the “largest single industrial development in Cloverdale history.”
With 185,000 square feet of industrial space, the property will offer a range of unit sizes – from 2,600 SF to a freestanding 76,000 SF building – for industrial users who have been struggling to find space in Metro Vancouver
“We are transforming an under-utilized, dormant property into a new business hub in the centre of Surrey that has the potential to generate 265 full-time jobs,” said PC Urban Properties CEO Brent Sawchyn. “With a severe shortage of industrial product across Metro Vancouver, extremely tight vacancy and rising lease rates, this development will offer a rare opportunity for local businesses who want to own their own warehouse, retail and office space in a market where prices for industrial strata are rising fast.”
According to Garth White, Principal at Avison Young, the latest Q2 statistics for Surrey show an increase in lease rates of 13.5% percent over last year and a continued low vacancy rate of 1.3%.
As a result of these market fundamentals, industrial strata prices have seen a significant upswing of 15% on average over the past 4 years.
“The majority of this demand is coming from user groups that historically would have purchased a smaller, freestanding building. But with limited options, businesses are now looking to strata to provide ownership opportunities.”
The company says the location, on the corner of two main highways is a huge boost to tenants.
Surrey currently runs 60 pert cent residential and 40 per cent commercial and industrial. The latter pays three times as much taxes, and draws on far fewer city resources, such as roads, libraries and recreation centres.
The city has been aiming to get closer to the 50 per cent commercial and industrial like Vancouver.
The Cloverdale project helps with that aim.