South Fraser Perimeter Road entices tenants to Tilbury

Boundary Bay Airport, TFN land among future industrial opportunities in Delta

Commercial real estate services company Avison Young is reporting there is a trend towards firms relocating to areas adjacent to the South Fraser Perimeter Road.

Some industrial tenants have begun relocating to Tilbury Industrial Park from Annacis Island to take advantage of the South Fraser Perimeter Road.

That’s according to a fall 2011 industrial real estate market report for Delta, published by commercial real estate services company Avison Young.

The report says rental rates have not yet been affected, but could change as the SFPR nears its expected completion date in 2013.

As a result of tenants shifting, industrial vacancy on Annacis Island has increased in recent months.

The Avison Young report says nearly $74 million has been invested in Delta industrial real estate from January to November 2011. That’s approaching the full-year total for 2010 ($82.1 million) and 2009 ($79.6 million), but falls short of the 2008 five-year high of $109.3 million.

The number of transactions closed in 2011 is 20, so far, and that’s not expected to surpass last year’s 28 transactions or the 40 deals closed in 2008.

In 2011, two deals involved properties exceeding the $10 million mark.

“The low cost of debt, combined with replacement costs running higher than acquisition costs in Delta, has pushed many buyers—particularly sophisticated investors—to reach for any quality product that comes on the market,” said Ryan Kerr, an Avison Young associate specializing in Delta sales and leasing.

Meanwhile, Delta’s industrial vacancy rate increased 8.5 per cent in fall 2011 from 7.9 per cent in fall 2010. Rental rates and deal flow have remained constant since the spring and that trend is expected to continue into 2012.

The report says industrial leasing activity in Delta had been “somewhat restrained,” particularly after the European debt crisis worsened in late summer, but appears to be picking up again as the end of the year approaches.

In recent years, industrial development in Delta has been driven by expanded port activities, the report says, but the Corporation of Delta’s new 20-year master servicing plan for Boundary Bay Airport is encouraging growth of a new industrial hub tied to the air.

Looking to the future, the report notes the Tsawwassen First Nation has designated some 335 acres of land for industrial use. Plans include up to 3.4 million-square-feet of distribution and logistics space, a new terminal gate, potential intermodal yard and a container and truck handling area, and commercial offices.

Surrey North Delta Leader

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Man pleads guilty to stabbing woman, off-duty cop outside North Delta elementary school

The suspect, whose name is under a publication ban, faced 10 charges in relation to this incident

Surrey RCMP boss Brian Edwards on moving forward, and what keeps him awake at night

Edwards spoke with Now-Leader reporter Tom Zytaruk about what he’s learning and hopes to accomplish as Surrey’s top cop

PHOTOS: Cloverdale’s Coldest Night of the Year charity walk raises $125K

Annual event sees more than 500 walkers take part

All-Surrey battle for South Fraser boys basketball title

At Tamanawis, the top four teams will go to provincials

Hopes are for ‘focus on Surrey investments’ when Horgan speaks in March

Luncheon at golf course planned by Surrey Board of Trade

VIDEO: Illicit drug overdoses killed 981 in B.C. in 2019, down 38%

Chief coroner says figures were down about a third in the province’s fourth year of the opioid crisis

UPDATE: Protesters dismantle blockade on Maple Ridge tracks

West Coast Express train service is expected to run again Tuesday morning

VIDEO: B.C.’s seventh coronavirus patient at home in Fraser Health region

Canada in ‘containment’ as COVID-19 spreads in other countries

Motorists were ‘driving like their own Indy 500’ before fatal Abbotsford crash, court hears

Family member declares defence request for 90-day jail sentence a ‘joke’

B.C. takes over another Retirement Concepts senior care home

Summerland facility latest to have administrator appointed

RCMP pull office from Wet’suwet’en territory, but hereditary chiefs still want patrols to end

Chief says temporary closure of field office not enough as Coastal GasLink pipeline dispute drags on

Prescription opioids getting B.C. addicts off ‘poisoned’ street drugs

Minister Judy Darcy says Abbotsford pilot project working

Royals, Elvis, Captain Cook: Hundreds of wax figures find new life in B.C. man’s home

Former director of Victoria’s Royal London Wax Museum still hopes to revive wax figure tourism

Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

Don Lindsay speaks at mining conference, a day after announcing suspension of oilsands project

Most Read