Vancouver, BC — The Vancouver Fraser Port Authority announced that it has recently completed the purchase of three strategic industrial-zoned properties in Richmond and Port Coquitlam.
Large parcels of industrial land are needed in the Lower Mainland for logistics warehouses and distribution centres to ensure the smooth and efficient movement of goods, but the availability of such parcels is declining at an alarming rate.
“Our focus is on protecting what industrial land is left in the Lower Mainland because studies show the region is going to run out of trade-enabling land within the next decade,” said Tom Corsie, vice president of real estate at the Vancouver Fraser Port Authority. “Our trade-enabling land strategy includes advocating for industrial land protection, acquiring industrial land to meet the needs of growing Canadian trade, and maximizing the use of our existing port lands.”
With the lack of new supply of land, coupled with an ongoing trend towards the conversion of existing industrial land to other uses, demand for trade-enabling land continues to intensify. In particular, this is evident with logistics facilities linked to the growing trade of goods in containers, fueled in part by the growth in the Canadian e-commerce sector. However, affordability of industrial land is becoming an important factor in the Vancouver region.
“Vancouver currently has one of the lowest availability rates for industrial space in all of North America,” commented Joel Barnett, vice president at CBRE Canada. “At 2.6 per cent, Vancouver’s availability rate is at generational lows, with options for large format logistics space yet more acute. This makes it challenging for both existing logistics occupiers to grow and for new businesses to enter the Lower Mainland. As such, we welcome the port authority’s efforts in securing these critical lands, which will contribute to the future vitality of the local logistics and distribution sector.”
The three properties that were purchased by the port authority will be temporarily designated for continued industrial use by the port authority, pending a formal amendment to the Vancouver Fraser Port Authority’s Land Use Plan, and will continue to be used mostly for warehousing and distribution for the foreseeable future.
The three properties include:
1700 No. 6 Road in Richmond – 8.48 acres
11480 to 11500 River Road, Richmond – 9.46 acres
1305 and 1375 Kingsway Avenue, Port Coquitlam – 17.65 acres
“Through the purchase of these properties, we are preserving nearly 40 acres of critical trade-enabling land that can be used to facilitate future trade through the Port of Vancouver, grow our economy, and support high-paying jobs,” continued Corsie.
The port authority will continue to pursue additional strategic acquisition opportunities as they become available and engage the region in a constructive and meaningful dialogue to find solutions to shared land challenges.