The growing demand for industrial space in the Greater Vancouver Area (GVA) has continued to outpace the market’s ability to supply ample options for its users. Tenants have had to look to more creative solutions for their industrial needs such as looking outward in the Greater Calgary Area (GCA) as an alternative.
- The lack of land options is particularly impactful to wholesale retailers and third-party logistics providers with requirements for sizeable properties over 100,000 SF with suitable functionality such as trailer parking and highway access.
- Operators have to consider both the capital and operational expenses of establishing and operating facilities in the GVA and GCA, as gains in one might mean loses in the other.
- With the strong demand, continuous growth, and limited developable land for industrial space in the GVA, landlords and investors would be behooved to think prospectively in investing in the current market.