Solving the Metro Vancouver Industrial Land Shortage?

[madog222]

Beedie just bought the container storage yard in Tilbury just of Hwy 17, 22 acres ready for development.

The site is within the Tilbury industrial hub, at the intersection of 80th Street and Highway 17 (the South Fraser Perimeter Road).

“It is incredibly rare for a site of this scale, especially in close proximity to the urban core, to be brought to market. The scarcity of industrial product, as evidenced by vacancy hovering (just) above zero per cent, has created an insatiable demand for industrial land that has inevitably spurred a competitive environment,” said CBRE senior vice-president Steve Brooke in comments emailed to RENX.

“This deal received 14 offers, with over a billion dollars looking to land in a market that is already constrained.

“We’re also now seeing pension funds and REIT’s actively pursue industrial development sites in an effort to capture the growth we’ve witnessed in lease rates across Metro Vancouver.”

From RENX https://renx.ca/22-acre-delta-b-c-in...d-beedie-cbre/

[Changing City]

A new big multi-storey industrial building is getting very close to completion on Vernon Drive in the Clark Drive 1-2 industrial area. It was initially going to be a strata project, but now an RNA therapeutics company have acquired the entire upper floors for their headquarters. [Changing City blog]

[hollywoodnorth]

pretty big site in Mission on the Market. Have to imagine Costco would love part of this site for a Warehouse with Gasbar.

https://goodmanreport.com/active-lis...ustrial-lands/

[fredinno]

Originally Posted by hollywoodnorth

pretty big site in Mission on the Market. Have to imagine Costco would love part of this site for a Warehouse with Gasbar.

https://goodmanreport.com/active-lis...ustrial-lands/

It probably won't. For some reason, under the Mission City OCP, it's designated as 'downtown mixed use' for densification.
Completely ignoring how it's impossible to get to without crossing the rail yards. Presumably, they didn't want to rezone the current Mission downtown.

Thankfully, Mission is not very good at getting much development.




In other news, the exact same plan for the South Campbell Heights that was rejected a few months ago was recently approved by a narrow margin.
https://dailyhive.com/vancouver/sout...ouver-approved

Sometimes, you just have to love bureaucracy.

[Changing City]

Having been rejected three weeks ago for further consultation, Surrey said they had already 'consulted' on the Campbell Heights plan to turn rural lands into an industrial park, (despite objections from the Semiahmoo First Nation and environmentalists).

Semiahmoo First Nation Chief Harley Chappell said that "We have had zero intergovernmental conversations with the City of Surrey," but nevertheless the board voted 69-65 to allow the development of the rural land.

[hollywoodnorth]

Originally Posted by fredinno

It probably won't. For some reason, under the Mission City OCP, it's designated as 'downtown mixed use' for densification.
Completely ignoring how it's impossible to get to without crossing the rail yards. Presumably, they didn't want to rezone the current Mission downtown.

Thankfully, Mission is not very good at getting much development.
:

as per the listing >>

Zoning ING/ING2 (Industrial General/Industrial General Two Zone) and that Zoning info on Mission's Site >> https://map.mission.ca/Mission/image...Zones/INGC.pdf

I am pretty sure the real estate agent knows the right zoning when selling a site worth over 100 million dollars.

[fredinno]

Originally Posted by hollywoodnorth

as per the listing >>

Zoning ING/ING2 (Industrial General/Industrial General Two Zone) and that Zoning info on Mission's Site >> https://map.mission.ca/Mission/image...Zones/INGC.pdf

I am pretty sure the real estate agent knows the right zoning when selling a site worth over 100 million dollars.

https://ehq-production-canada.s3.ca-...838a51b5c97209

The commuter rail area, which is part of the Waterfront, is now a mix of light industrial and commercial uses. Due to its proximity to the West Coast Express station, downtown and the waterfront, this location has the potential to support high-density residential uses that are integrated with commercial and warehousing/wholesale land uses. It is an excellent location for affordable housing, especially for frequent transit users. This is a neighbourhood that will likely experience a gradual transition to more residential uses.

There's also a map there, on page 248, that contradicts their claims.

https://www.mission.ca/city-hall/dep...on-waterfront/

We’ve established a comprehensive planning area, representing approximately 296 acres of land, that will guide a future for the waterfront that is complete, walkable and connected.

Revitalizing the waterfront has many benefits that move beyond Mission to the rest of the Fraser Valley and Lower Mainland and will increase access to opportunities, support sustainability, and drive investment and bold economic development.

Cities across the country are actively transforming their waterfronts to create vibrant new neighbourhoods with parks and trails, arts and cultural spaces, diverse housing options and innovative business spaces that incorporate important historical and cultural values.

A few examples of these waterfronts are happening in Halifax, Toronto, Winnipeg and Hamilton.

Council approved a bylaw to add the Waterfront Comprehensive Planning Area designation to the Official Community Plan Bylaw on Sept. 21, 2020.

They note that industrial land is in short supply, but still propose to go forwards with this, with the hope that they can rezone a different ALR parcel to industrial.

https://dailyhive.com/vancouver/miss...-redevelopment

A mix of housing options and types — including affordable housing and rentals — for up to 40,000 people could eventually be built in Southwest Mission, along with a mix of commercial and industrial jobs in Mission Waterfront, as well as a wide range of supporting infrastructure, public spaces, community amenities, cultural amenities, and green infrastructure.

It would be a transit-oriented community, oriented around an active transportation strategy, and with distinct precincts.

Note that this is a net loss of industrial land, because the entire area is already zoned industrial. This is most likely a Flavelle Sawmill situation, where they put 1 small industrial building next to a bunch of towers covering 80% of the site so they can technically meet the 'industrial' requirements.


The Mission OCP literally states the area is critical to providing jobs for the Mission community and is barge and rail accessible. So they're going to kill the employment center of Mission for money.

These people are thinking along the same lines of the geniuses behind the Surrey Canal and LRT idea.

[hollywoodnorth]

Port of Vancouver creates 40-acre empty container storage site in Richmond

https://dailyhive.com/vancouver/port...tainer-storage



pic from >> https://images.dailyhive.com/2022022...facility-f.jpg

[madog222]

Here's a small proposal at 365 Railway Street by Allied Properties REIT, designed by Perkins+Will.
Four stories of new mass timber construction over the existing 1940s 3 story (lane level) concrete building which will be rehabilitated and heritage designated. 41k sqft of manufacturing on the lower four floors and 21k sqft of office space on the upper 2 floors.

https://shapeyourcity.ca/365-railway-st


Image from Allied Properties / Perkin+Wills https://shapeyourcity.ca/28786/widge...ocuments/76786

[jollyburger]

PC Urban bought 8696-8700 Barnard Street (3.67 acres) for $9.3 million/acre

https://www.cushmanwakefield.com/en/...er-marketbeats

[jollyburger]

Wesgroup at 1150 Raymur



https://shapeyourcity.ca/1150-raymur-ave

[jollyburger]

Along with that PC Urban transaction.. Amazon bought 12.45 acres at 86 & 168 SE Marine Drive from Hungerford for $150 million

$12 million an acre

https://www.cbre.ca/en/research-and-...igures-Q4-2021

Hungerford just bought it in 2018 and I think they withdrew their development application for a storage warehouse before it was about to go for review.

https://vancouversun.com/business/co...-redevelopment

And some ecommerce firm signed a pre-lease on 503,813 square feet at 8011 Zylmans Way in Richmond. Not Amazon?

[Changing City]

Originally Posted by jollyburger

Along with that PC Urban transaction.. Amazon bought 12.45 acres at 86 & 168 SE Marine Drive from Hungerford for $150 million

$12 million an acre

https://www.cbre.ca/en/research-and-...igures-Q4-2021

Hungerford just bought it in 2018 and I think they withdrew their development application for a storage warehouse before it was about to go for review.

Nice find; the Amazon purchase has really flown beneath the radar. The purchase price by Hungerford from WalMart was reported as $90m, so they've done well to sell for $150m. They have had expenses since then for the demolition of the old Dueck building, that had issues because the roof had caved in. The contractors put the work on their website (with pictures of them sorting all the materials for recycling). While they talked about light industrial and retail, I don't recall an application by Hungerford on the site - they have a current commercial project on the Kia dealership site down the street that seems to have been their main focus.

It'll be interesting to see if Amazon go multi-storey, like their Burnaby building being developed by Oxford at Riverbend, and whether any energy efficiency elements are included. There was mention of a Vancouver warehouse in May last year, but no location was identified. It's likely it'll be fully robotic so only a few hundred jobs, at best.

[WarrenC12]

I wonder how that will impact traffic in the area. Hopefully they showcase it with as much modern technology as possible. Some electric delivery vans from Rivian would be great.

[jollyburger]

Some property on Powell that sold/on sale

1357–1449 Powell Street, Vancouver
54,946 SF office/warehouse building
f Multi-tenant building on 1.64 acres
$24,293,000 ($442 PSF)

Another 1.3 acres across the street is also for sale with a $32 million dollar asking price

Right now it's 57K square feet but with 5 FSR they can build out 280K square feet.

https://macdonaldcommercial.com/docs...-Vancouver.pdf

[GenWhy?]

Would be fun to see what they can do with that 1934 warehouse on the lot (as in save Powell St Brewery somewhere on there).

[jollyburger]

Amazon grabbed 700K square feet at Riverbend

https://biv.com/article/2022/03/amaz...ndustrial-park

Seattle-based retail giant Amazon has leased the sixth and final building in Burnaby B.C.’s new Riverbend Industrial Park, Canada’s first multi-storey industrial build, which was developed on speculation by Oxford Properties Group of Toronto.

The lease of the entire 707,000 square foot space brings development of the 1.35- million-square-foot business park to a successful completion, according to Jeff Miller, head of industrial at Oxford Properties, the real estate arm of OMERS, the pension plan for Ontario's municipal employees.

Formerly an abandoned paperboard milling operation and landfill, Oxford has transformed Riverbend into an environmental award-winning business campus.

The last of the site’s six buildings to be constructed – having broken ground in late 2019 – Amazon will commence operations at the multi-storey complex upon its completion in the fourth quarter of 2022.

"Vancouver is one of the tightest and most land-constrained industrial markets in the world, so we knew bold solutions were required to deliver the type of footprint demanded by the growing digital economy,” Miller said. “

Metro Vancouver’s industrial vacancy rate, as of the end of 2021, was 0.4 per cent, the tightest among large Canadian cities, according to Colliers Canada. Average industrial lease rates were up 18.8 per cent from a year earlier at $18.80 per square foot.

Riverdale’s multi-storey design optimized the amount of industrial space that could be built on the 65-acre site, which included 14 acres of landfill. It is the largest speculative development ever constructed in Greater Vancouver, according to Miller.

Purchased by Oxford in 2011, mountains of waste and debris was removed from the site and converted back into developable land. Additionally, Oxford implemented several initiatives to restore the shoreline of the adjacent Fraser River. Invasive and non-native plant species were removed, improvements made to fish habitats and shoreline erosion protection measures installed. The brownfield site earned the 2019 City of Burnaby Environmental Award.

Comprised of six fully leased buildings, Riverbend’s tenants include the Mercedes and Volvo fuel-cell joint venture cell-centric, Article, Canada Post and now Amazon.

The Riverbend facility features a heated truck ramp to access the second level. It includes 124 loading doors at three separate truck entrances spread across the two levels. The ground floor is 437,000 square feet and the upper level covers 270,000 square feet. It has a clear height of 32 feet and the floor is eight-inch reinforced concrete capable of supporting 500 pounds per square foot.

The business park also provides employee amenities including walking trails, end-of-trip facilities and a pedestrian pier that overlooks the Fraser River.

[jollyburger]

More restrictions on self-storage in Vancouver

-No first level self-storage
-No self-storage near rapid transit stations

https://council.vancouver.ca/20220301/documents/rr6.pdf

[hollywoodnorth]

WALMART OPENS VERTICAL DISTRIBUTION CENTER IN SURREY

https://bc.ctvnews.ca/video?clipId=2422115



Walmart opens 300,000-square-foot South Surrey distribution centre

Technologically-advanced building aims at energy-efficiency, sustainability

https://www.aldergrovestar.com/busin...bution-centre/

“Building vertically was a means of reducing our footprint,” he said. “Built traditionally, it would probably have covered around 500,000 square feet.”

[whatnext]

This was in Bloomberg last week. Not sure if it's paywalled:

Vancouver's jammed warehouses show why inflation is so sticky
Derek Decloet, Bloomberg News
April 25, 2022

Vancouver's jammed warehouses show why inflation is so sticky
Derek Decloet, Bloomberg News

To understand why inflation is running so hot, look to Canada’s West Coast. Vancouver, the home of one of North America’s busiest ports, is bursting at the seams.

The vacancy rate for space in the city’s warehouses has fallen below 1 per cent, according to data from real estate advisory Altus Group Ltd. Industrial rents are soaring and so are land values -- if you can find any land to buy, that is. The average home is $1.4 million (US$1.1 million) and developers are eager for new places to build.

It’s so hard for firms to find space that goods destined for Vancouver are sometimes brought in through the port and sent about 660 miles (1,160 kilometers) east, to Calgary, where they’re stored before being shipped back again.

“Industrial space has now been infected with the same disease as houses,” said Murray Mullen, chief executive officer of one of Canada’s largest trucking and logistics firms, Mullen Group Ltd. Companies that are renewing industrial leases will, in some cases, be paying double what they were before, Mullen said....

... The proximate cause of the ultra-tight industrial market is the boom in demand for online shopping and the kinks in the supply chain that have formed as a result of COVID-19, war in Europe and other disruptions. Those problems have encouraged retailers and manufacturers to order goods “one cycle ahead,” Mullen said, building up inventories as insurance against future factory slowdowns or transportation bottlenecks.

Some companies are responding to the higher prices and lack of availability by seeking land and space far from the major cities, in places such as London, Ontario, about a two-hour drive southwest of Toronto. Still, some of those markets are now getting tight, too.....

https://www.bnnbloomberg.ca/vancouve...icky-1.1756471