Intuitively, we typically see older multi-tenant industrial buildings in the Fraser Valley transact at lower prices than new ones. However, what is less commonly identified is that there is no consistent difference in the price of buildings within the same construction “generation” regardless of actual age. Within each “generation”, prices vary due to building/unit condition, specific location, and interior improvements condition. The price gap is far more apparent between the “new” and “old generation” building designs, which is illustrated in the below graph of industrial strata sales in West Abbotsford.
New vs Old Generation Strata Warehouse Sale Price Per Square Foot
As new strata developments in West Abbotsford continue to achieve record pricing with almost every transaction, the prices for all existing strata properties have increased alongside them. With the number of available properties being so low, the price difference between “new” and “old generation” is growing increasingly smaller.
WHAT ARE “NEW” VS “OLD GENERATION” INDUSTRIAL BUILDINGS?
Historically in West Abbotsford and across B.C., multi-unit industrial buildings were built with concrete block design. In the late 1990’s however, the concrete tilt-up or tilt slab style emerged which had more cost-effective techniques for shorter completion time. This now preferred method involves the concrete elements of buildings (walls, columns, structural supports, etc.) to be poured horizontally on a building’s concrete slab floor then, once cured, they are “tilted” to the vertical position with a crane and braced into position until the remaining structural components are secured. These “new generation” buildings are what we see prevalent in industrial buildings now versus buildings of a concrete block design which we have termed as “old generation”.
King Business Park
31779 & 31789 King Road, Abbotsford
- 112,372 sf building built by Cedar Coast
- Unit sizes: 11,667 – 59,492 sf + mezz
- Completion expected Q1 2021
- Listed by Colliers International
Mason Corporate Centre
2188 Mason Street, Abbotsford
- 162,132 sf building built by Beedie
- Unit sizes: 12,000 – 12,414 sf + mezz
- Completion expected Q2 2020
- Listed by CBRE
If you have any questions, or if there is any further information that would be particularly helpful to you, don’t hesitate to contact Braydon Hobbs or Todd Bohn Personal Real Estate Corporation.
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Sources: Commercial Edge, CLS, Frontline Real Estate Services independent research