Record Pricing Achieved in Port Kells

Case Study: 20097 92A Avenue, Langley

What does the recent sale of this freestanding industrial building in Port Kells tell us about the industrial real estate market in the Fraser Valley?


Address: 20097 92A Avenue, Langley, BC
Building size: 14,122 sf facility
Office build out: 5,800 sf over two floors (approximate)
Land size: 0.55 acres
Zoning: M-1A (Service Industrial)
Property highlights: Concrete tilt construction with two levels of professionally finished office, 4 oversized grade loading doors, 0.13 acres of yard/loading area.
Location highlights: Located in Port Kells, one of the Lower Mainland’s most sought-after industrial nodes due to its location and accessibility. Excellent access to Highway 1, Lougheed Highway (via Golden Ears Bridge), South Fraser Perimeter Road and 200th Street.
Listing agents: Kyle Dodman and Todd Bohn Personal Real Estate Corporation


Sale price: $4,100,000 ($290 per square foot)
Sale date: August 2018
Purchaser type: owner/occupier
At the time of the transaction negotiations, the sale price was a new record high price per square foot (including mezzanine) for a freestanding industrial building in Port Kells. By running a comprehensive listing and marketing process for the property, we generated multiple offers and achieved a great price with a short transaction timeline for our client, which were their goals.


“We went to market without a list price to allow the market to dictate the selling price. Due to the rarity of the property, we gave guidance 10-20% above what would have been considered market price at the time and we got it! It was a great result for our client.”

– Kyle Dodman, Industrial Sales & Leasing, Frontline Real Estate Services Ltd.


“Prior to selling our building on 92A, Kyle & Todd worked with me for over a year while we looked at different properties for the business to relocate to. While assisting me, they provided a couple of market assessments which helped formulate my business plan and also helped in the selection of the properties we looked at and the one we finally secured.

Through the purchase transaction, they provided an alternate financial services group to the one we generally used and this also helped us in our decision making process.

Throughout the holding transaction, till the final payout, they were very helpful and provided references to other parties to help on design, renovations, the back and forth between the new buyers etc.

In short, by working with Kyle & Todd, they took the uncertainty out of the picture, the action items were simple and easy to address, and we didn’t need to spend any unnecessary time which allowed us to focus on our core business. This is what works for me.”

– Mike Asselstine, General Manager, RKM Services


The Fraser Valley is experiencing a record low industrial vacancy rate
This is driving businesses to pay a premium for a property that will work for them long term, even if this means leasing some of their excess space in the interim to account for future growth. The forecast is that industrial real estate supply will only get worse, so moving a business is becoming an increasingly expensive and difficult process.

Owner-occupier demand
Demand from owner-occupiers (industrial businesses that will purchase and use the space) is a symptom of the strong economy, strong business growth and the low vacancy rate. The result is that owner-occupiers can justify paying a higher price than an investor can, based on an expected cap rate. This is making industrial real estate pricing dynamic and much less logical.

A preference for ownership
Many business owners prefer to own their own premises for three main reasons:

  • Security: owning provides a sense of security that leasing does not.
  • Flexibility: owning a freestanding building means you are free from any constraints that may be implemented by a strata corporation.
  • Investment opportunity: asset appreciation is a huge pro for many businesses when compared to paying rent to lease a space.

Port Kells is one of the region’s most sought-after areas due to its proximity to major transportation routes, some businesses need to be in Port Kells to be competitive in their industry


Looking to sell an industrial property?
Currently you can sell a vacant industrial building for a higher price than an occupied building due to owner-occupier demand. How much of a premium this variable can earn depends on a variety of factors which we can help you determine.

Looking to buy an industrial property?
Due to the current market conditions we encourage you to plan as far ahead as possible and be prepared to pay a premium if you require a particular location or building type. Hiring an industrial real estate agent who knows about off-market opportunities and future projects is a huge advantage.


Sources: Commercial Edge, Frontline Real Estate Services research. Record high price is based on all sales closed as of August 29, 2018 (transaction date).

Todd Bohn

Personal Real Estate Corporation

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