October 17, 2014
Vancouver, BC - Today, NAIOP Vancouver (The Commercial Real Estate Development Association of Metro Vancouver) released the second phase ofits Long Term Forecast and Analysis of Metro Vancouver`s Industrial Lands. The study focuses on the availability of industrial land in the Metro Area for the period 2017 and beyond. Last year, NAIOP Vancouver released its first report on the industrial land inventory issue,Metro Vancouver`s 2012 Market Readiness of Vacant Industrial Land Report, which focused on the period 2012 to 2017. Both reports were prepared by Pacific Land Group (PLC).
The total available industrial inventory established by both reports is 2,919 acres, which equates to just over 11 years of supply. However, this total inventory is made up of largely smaller parcels and in areas that are not ideal for development; therefore, the inventory required for continued economic growth will be absorbed in half that time.
The report`s chief conclusion is that vacant industrial land in Metro Vancouver is experiencing diminished available inventory, year over year, as steady absorption continues to outpace the market-ready supply of developable land. The report`s authors conclude that there is actually less than a decade`s supply of general industrial land, for job-producing enterprises, and potentially far less supply for land serving regional and national users. For example, enterprises such as Amazon have been looking for a suitable parcel of industrial land in the Metro area for several years for their regional warehouse. Large companies which cannot find parcels of industrial land which fit their specifications, will end up going to Calgary and Seattle to find such land.
The primary purpose of both reports is to ensure that key policymakers like Metro Vancouver are working with as accurate and realistic an information database as possible, to guide their decisions on the industrial land base.
"In our view, the report identifies that there is a critical need for additional industrial, jobs-producing lands in Metro Vancouver," says Chris MacCauley, Vice-President, Industrial Properties of CBRE, and a board member of NAIOP Vancouver, which commissioned the report. "Flexibility in the use of industrial lands needs to be maintained to respond to changing needs of industry," he adds.
"We need to focus on a roundtable advisory group to begin a broad-based discussion, involving the Province, Metro Vancouver, and the Municipalities in the region to identify locations where industrial lands can be added in the short, medium and longer term," says Gord Wylie of Chard Development and a board member of NAIOP Vancouver. "Solutions may involve re-designating land," he notes.
NAIOP Vancouver believes that it is necessary for all levels of government to foster the conditions to ensure that a sufficient supply of industrial land is available to the marketplace in the short to medium term, as land availability has been shown to drive absorption. Without the ability for end users to acquire land necessary for the establishment and growth of their businesses, some of these key job creators will be forced, out of necessity, to find alternative regions to meet their client needs, which in turn will only serve to reduce the overall economic prosperity of Metro Vancouver.
Please see here for access to an electronic version of the report.
For further information, contact:
Primary: 1) Chris MacCauley 604 662 5190, Chris.MacCauley@cbre.com
2) Darlene Hyde 604 341 0775, firstname.lastname@example.org