Solving the Metro Vancouver Industrial Land Shortage?

[seamusmcduff]

Interesting, thanks for the background.

[hollywoodnorth]

looks like site prep/excavation is underway for FRAMEWORKS @ Clark & 1st Ave in Vancouver. I saw a excavator on site a while back when I drove by.

https://www.alliancepartners.ca/frameworks/

[madog222]

Originally Posted by hollywoodnorth

looks like site prep/excavation is underway for FRAMEWORKS @ Clark & 1st Ave in Vancouver. I saw a excavator on site a while back when I drove by.

https://www.alliancepartners.ca/frameworks/

There has been an excavator or two there for a few months now, perhaps dealing with contaminated soil. I didn’t see proper excavation last time I passed by.

[madog222]

^Full construction building permit was just issued for Frameworks.

https://plposweb.vancouver.ca/Public...ctId=147288263

[jollyburger]

How Minimum Parking Requirements Affect Industrial Development
The conclusion: after visiting each of the sites and observing the parking utilization during peak hours (Tuesdays, Wednesdays, and Thursdays between 9:00 am and 11:00 am), they found that industrial sites in the Lower Mainland generally have an oversupply of parking by about 50%.

https://storeys.com/industrial-real-...-requirements/

[officedweller]

To the Zara billionaire....

Burnaby multilevel distribution centre sells for $358.9 million


Spain's Pontegadea Inversiones SL, the investment company of Zara founder Amancio Ortega, purchased 5213 North Fraser Way, Burnaby, for nearly $366 million.Kevin T/Google Maps
https://www.westerninvestor.com/done...illion-8175269

[jollyburger]

Originally Posted by officedweller

To the Zara billionaire....

Burnaby multilevel distribution centre sells for $358.9 million


Spain's Pontegadea Inversiones SL, the investment company of Zara founder Amancio Ortega, purchased 5213 North Fraser Way, Burnaby, for nearly $366 million.Kevin T/Google Maps
https://www.westerninvestor.com/done...illion-8175269

In 20 years is Zara or the real estate worth more? Even with over $70 billion dollars net worth it's crazy how much money he's dumping into real estate.

Fashion billionaire Amancio Ortega’s real estate investments recorded a 19% increase in value in 2022, as it expanded into logistics and added luxury apartment buildings.

The property portfolio owned by the Inditex SA founder was valued at €18.1 billion ($20.1 billion) in 2022, up from €15.3 billion in 2021, according to a statement Thursday from Pontegadea, the firm that manages Ortega’s fortune. Ortega’s real estate portfolio is the largest among Europe’s “super-wealthy” individuals.

Spain’s richest man spent about $1 billion in warehouses across the US last year, in his first move to invest in the logistics industry after years of focusing mainly on commercial real estate. Pontegadea needs to spend close to €2 billion a year that it receives as dividends from Ortega’s 59% stake in Inditex, owner of the Zara and Bershka clothing brands, among others.

The US logistics acquisitions included plants in Pennsylvania and Texas, making Ortega, 86, landlord to companies such as Amazon.com Inc, TJX Cos and FedEx Corp.

In 2022, Ortega also bought two residential properties, a 64-story skyscraper in Seattle and an apartment building on New York’s Dutch Street.

This year, Ortega agreed to pay $115 million for his first European warehouse in Venlo, in the Netherlands, and bought a plant east of Los Angeles used by Walmart Inc.

The recent acquisitions mark the latest steps to diversify a portfolio historically focused on landmark office and retail buildings, including Meta Platforms Inc.’s headquarters in Seattle, Manhattan’s historic Haughwout Building or London’s Adelphi.

The family office also also owns stakes in energy and telecom infrastructure operators and renewable power generators, including a 12% stake in Portuguese power and gas grid operator REN—Redes Energeticas Nacionais SGPS and 5% in Spanish electricity transporter Red Electrica Corp.

Ortega has a net worth of $76.5 billion, according to the Bloomberg Billionaires Index.

[officedweller]

Originally Posted by jollyburger

In 20 years is Zara or the real estate worth more? Even with over $70 billion dollars net worth it's crazy how much money he's dumping into real estate.

Historically though, a good retail business is founded on quality real estate.
I think it's when stores try to depend solely on the retail operations and monetize their real estate (sell it off an lease back) that they run into trouble. It probably good that there are deep pockets behind the stores.

[jollyburger]

Site progress on Beedie's Building B at Fraser Mills

https://www.instagram.com/p/C5o5LjePfpG/?img_index=1

[jollyburger]

Metro Vancouver's Regional Growth Strategy aims to protect the region's industrial lands in the coming decades by supporting multi-storey buildings and encouraging higher-density industrial projects that include tech-based businesses on the higher levels. Currently, industrial-zoned land represents only about six per cent of Metro Vancouver's land base.

Metro Vancouver faces some serious challenges in protecting and improving its inventory of industrial lands, Aderneck said. Among them are constraints on land, both physical and regulatory, the conversion of industrial land to other uses and jurisdictional complexity.

In response to these challenges, the Regional Industrial Lands Strategy by Metro Vancouver has put together a lengthy list of recommendations that include 10 priority actions organized into four "big moves":

protect remaining industrial lands;
intensify and optimize industrial lands;
bring existing supply to market and address site issues;
and ensure a coordinated approach.

Panelist Michelle Sotomayor is vice-president, development with Conwest Developments. She said the overall growth strategy and recommendations need to take into consideration the bottom line of profitably.

"When we bring a project forward, to distill it into some main considerations: it's around market, the regulatory environment, capital, finance and, of course, design,” she said.

The market has changed, with more availability than in past years.

Sotomayor said the market recently experienced the first quarter of negative absorption in years and lease rates are roughly 10-15 per cent lower than the most recent highs, anecdotally speaking. Developers are lacking motivation to produce new buildings.

Meanwhile, development costs and complexities are rising with developers facing more regulation, Sotomayor said.

No two industrial projects are the same, said panelist Craig Taylor, president of architecture firm TK+D, which has a lengthy portfolio of innovative industrial buildings in the region including multi-level projects like Riverworks and Ironworks.

For innovation to continue the cost to develop more advanced buildings must be outpaced by value and productivity, Taylor said.

“We've still got to drive down the cost of land and construction costs and development costs in general, to ensure that this equation works.”

https://renx.ca/will-slower-market-s...lower-mainland

[GenWhy?]

I found it interesting during the panel that the expansion of industrial or the uses allowed only in industrial zones (that are not really "industrial") into areas outside the currently designated Employment Lands and Industrial Lands... was not on the table.

[whatnext]

Had these sitting on my phone for a while. The Riverworks light industrial complex at 1568 W.75th (Marpole). Still quite a few unoccupied units. It was interesting to see the provision for rising sea-levels.

[IMG]IMG_9506 by bcborn, on Flickr[/IMG]
[IMG]IMG_9507 (1) by bcborn, on Flickr[/IMG]
[IMG]IMG_9508 by bcborn, on Flickr[/IMG]
[IMG]IMG_9509 by bcborn, on Flickr[/IMG]

my photos

[jollyburger]

They just applied to increase the office space in the building

https://www.shapeyourcity.ca/1568-w-75th-ave

[whatnext]

Originally Posted by jollyburger

They just applied to increase the office space in the building

https://www.shapeyourcity.ca/1568-w-75th-ave

Not surprising. I also noticed that Heritage Office Furniture had moved out of the big warehouse space they had across the street and that’s to be redeveloped. Anyone know where Heritage moved?

[vanman]

I'm really liking a lot of the stacked office/industrial projects going up as of late. The Mount Pleasant area has the best examples but even south Vancouver has some decent looking buildings going up. Marine Landing behind the Mcdonalds on Marine and Manitoba is turning out better than most condo buildings.

[jollyburger]

Originally Posted by whatnext

Not surprising. I also noticed that Heritage Office Furniture had moved out of the big warehouse space they had across the street and that’s to be redeveloped. Anyone know where Heritage moved?

They have a showroom/HQ in Mt Pleasant now (295 West 5th Avenue). Warehouse seems to be in Big Bend (8288 North Fraser Way)

[jollyburger]

Missed this but Telus is redeveloping an old work lot beside BCIT into light industrial/offices

https://www.linkedin.com/posts/cliff...53790209-3oFE/

[hollywoodnorth]

Originally Posted by jollyburger

Missed this but Telus is redeveloping an old work lot beside BCIT into light industrial/offices

https://www.linkedin.com/posts/cliff...53790209-3oFE/

close to completed now >> https://maps.app.goo.gl/Cj9oko1YFkhQXgjc6

[Feathered Friend]

https://intraurban.ca/locations/southlands/



















8696 Barnard St 8680, 8690, & 8710 Barnard Street – IntraUrban Southlands
Photos Taken Sep, 27 2024
215,203 Square Feet Of Manufacturing, Office, & Storage Space

Development Application Submitted – July 2022
Building Permit Issued – April 2024

https://www.instagram.com/p/DBPtJ0GyQkO/

[jollyburger]

Cedar Coast, a developer in B.C.'s Lower Mainland, has started work on a two-building industrial project in Richmond near the Vancouver airport that will deliver almost a quarter-million square feet of strata product into the market.

Preloading of the site has just started, and pre-sales are now under way, Aaron Fedora, vice-president, development with Cedar Coast, said.

Garth White, principal with Avison Young, said there has been a definite softening in rental rates in the region, but a price "delta" has appeared between newer-generation product and older buildings. There has also been an uptick in leasing activity during the past 100 days, he said, noting that roughly a million square feet of space has been leased in the market in that time.

Forecasting the next year-and-a-half, White said vacancy could creep back down as new construction will remain muted over the time period. "There will be about 2.5 million square feet of construction in 2025, which is significantly below what we typically deliver."

It won't take much demand for a space shortage to return in the region, he said.

https://renx.ca/cedar-coast-bridgepo...ment-vancouver