With nearly 3 million square feet of new industrial space, either under construction or awaiting permits, Campbell Heights is seeing more development activity than any other industrial submarket in the Fraser Valley.
The more precise number is 2,895,489 square feet, though that keeps growing and doesn’t include projects that are currently in the planning or design phase, such as the new Walmart and Sobeys facilities that were announced earlier this summer. Projects in the early stages account for an additional 2 million square feet.
Unfortunately, over 40% of the space that is under construction or awaiting permits is already spoken for. Some of the new construction is being built for specific businesses while some of it has already been leased or sold prior to construction commencing. Industrial business owners need to plan well in advance for a move or any new space requirements. We recommend that if your lease expires in the next 8-12 months, or if you foresee your operation outgrowing your current space in that time, then you should start looking immediately. If you want to build a custom facility, then you should ideally budget at least 2 years due to the lack of available land, permitting timelines, and construction delays.
WHAT IS COMING TO THE AREA
Since it opened in 2004, Campbell Heights has earned its reputation amongst industrial businesses, and thus investors and developers, as an excellent distribution hub due to its proximity to major transport routes including the US border and the local workforce. It is also one of the few places in the region where there are still large parcels of industrial land available. A brief history on the area:
2000: The Campbell Heights Local Area Plan is approved by Council
2001-2004: Council reviewed and approved a variety of amendments and reports related to the Campbell Heights Local Area Plan including design guidelines, a review process for development proposals and the pre-zoning of some lands. This allowed for development to kick off in Campbell Heights in 2004.
2004-2011: over 2.4 million square feet of office, commercial and industrial space was built in Phase 1 of the Campbell Heights Business Park.
2011: Land sales and development of the 250 acre Campbell Heights North commenced.
Campbell Heights North
Phases 1-4 of Campbell Heights North are now occupied, and we are seeing development occur in the 5th and final phase.
Campbell Heights East
Campbell Heights East is currently being serviced and will be a master planned business park with 84 acres of developable land – including the land where Walmart’s new facility will be built.
South Campbell Heights
This area has been in the planning process since 2014. Earlier this year, the City of Surrey requested an amendment to the Metro Vancouver Regional Growth Strategy to move the planning process forward. The Metro Vancouver Board sent the amendment application back to the City of Surrey to consider alternates.
South Campbell Heights will be the last frontier for the Campbell Heights submarket. If approved, it could add some much-needed industrial land to the region’s dwindling inventory.
It’s not all about land though, one of the most exciting things about the Campbell Heights market is that the new projects being announced are bringing a wide variety of assets to the market, not only is there new industrial land being serviced, but multiple new lease projects and strata complexes are underway, plus the facilities that are being built by owner-occupiers and for build-to-suit leases. The map below highlights this variety by colour coding properties by development type.
The four highlighted projects below showcase the range of development activity in the neighbourhood. These include a 150,000 square foot strata project by Beedie in Campbell Heights North, Diversified Properties’ 450,000 square foot lease project, the land being serviced in Campbell Heights East, and a potential lease or strata project that includes a future road designation. The locations of these projects are noted on the above map with blue numbers.
1. 38 Ave Business Centre
Location: 19155 38 Avenue
- 8,673 – 149,220 sf
- Concrete mezzanines
- Dock and grade
- Completion expected Q3 2019
- Built by Beedie
3. Campbell Heights East
Location: 28 Avenue East of 194 Street
- Draft development concept for 152 acres
- 84 acres of developable land
Sources: City of Surrey, SCDC, Beedie Development, Diversified Properties, Orion Construction