Industrial Update
Colliers’ Stefan Morissette points to several recent deals as a sign of where the small to mid-bay distribution industrial space market is heading—two deals totaling 28k SF at 1331 Derwent Way in Delta on behalf of the RCG Group; two deals totaling 38k SF at 13100 Mitchell Rd in Richmond; and a number of 4,200 SF leases at 14271 Knox Way in North Richmond on behalf of ONNI. All three of these business parks are now fully leased. (Machines need a place to sleep, too, you know.)
“Industrial leasing activity in this sector has been strong in the first quarter of 2014,” Stefan says. Most of the activity, as his recent deals indicate, has been in Class-A facilities with ample dock loading and minimal office space. Spaces with higher office components and older generation facilities continue to struggle and “have seen a continued decrease in achievable lease rates,” he says. One thing to look for going forward, an indicator of a continued strong market in this sector (and a boost to a stagnant large-bay leasing market), is Port Metro Vancouver’s 2013 Statistics Overview noting the increase in containers handled by the Port is 9% higher than 2012, and that trend is expected to continue. That and the continued projections of a continued increase in BC’s GDP.
