An $8 billion federal government shipbuilding contract is expected to boost demand for commercial and industrial real estate in North Vancouver, with the uptick expected to start next year.
"Now is the time to be looking for space on the North Shore," said Terry Thies, a principal with Avison Young, who has been discussing real estate needs with North Vancouver-based Seaspan Marine Corp., which landed the multibillion-dollar contact on October 19. Thies said it is "still early in the game" for Seaspan, which has sufficient facilities to start the largest federal procurement contract ever awarded in B.C.
Thies said it is likely that demand for both industrial and office space in North Vancouver will begin to ramp up in mid-2012 as suppliers and contractors for the huge project begin to assess their real estate needs.
The North Shore industrial market, dominated by North Vancouver City and District, currently has an industrial vacancy rate of 2.1 per cent, according to a survey by Cushman & Wakefield, and has the highest warehouse lease rates in Metro Vancouver, at from $10 to $15 per square foot. There is 140,000 square feet of new industrial space under construction on the North Shore. Prices for industrial land are also the highest in the province, averaging $2.5 million to $3 million per acre of serviced industrial.
Thies noted that the North Shore has a 7.7 per cent office vacancy rate, which had been expected to increase after two new office buildings completed this year at the Dollarton Business Park and at 1860 Lonsdale Avenue, North Vancouver City. With the shipyard contract announcement, the vacancy rate could now be lower by next year, Thies suggested.
from Western Investor December 2011
