West Abbotsford’s Influx of Industrial Strata

West Abbotsford is becoming an increasingly appealing location for businesses to base their operations because of the numerous industrial developments and opportunities available. The area’s growth continues to outpace nearby neighbourhoods and it is currently in the spotlight due to the sheer number of new stratified industrial projects coming to market. An estimated 625,665 square feet of new industrial strata warehousing will be completed in West Abbotsford by Q1 2021. This is the first stock of new strata warehouse inventory brought to market in Abbotsford since the completion of the Maclure Business Park in 2009 and is easily the largest amount of new strata in the pipeline of any submarket in the Fraser Valley.

The 625,665 square feet includes projects currently in the presale stages and those undergoing the permitting process. This increase in inventory will provide a variety of options and features for industrial businesses and investors, including a range of unit sizes, loading options, ceiling heights, levels of exposure and bay sizes. The mix of bay sizes being released is expressed in the pie chart below.

Included in these developments are some of the area’s first strata projects to offer dock loading. With many businesses operating from facilities that are not ideally suited for their operations, the release of these dock loading units will provide them with the opportunity to relocate to a more suitable facility. This movement will provide relief to existing buildings, providing opportunities for new tenants to move in.

Further details of all the upcoming projects, including loading options, can be found below.

MARKET IMPACT

Stratified warehousing offers an accessible price point for many industrial businesses to acquire their first commercial property while, at the same time, the general lack of freestanding buildings and developable industrial land often make it the only option for many new or growing businesses. This lack of supply of industrial real estate and the resulting pent up demand in the market is expected to absorb this new inventory relatively quickly, especially considering the varied product mix and completion dates across the projects.

Despite the injection to inventory that these projects will provide; prices are expected to continue to rise for the foreseeable future with new benchmark prices expected each month until all the new strata units are absorbed. Unfortunately, once these projects are brought to market (the last one is expected in 2021), there are no further strata projects in the pipeline for the immediate area. This may change but, at this time, available land for future projects is very limited.

Key Takeaways for Industrial Businesses

• These new strata projects will provide the opportunity to make the jump from leasing to owning your business’ premise
• These new projects will present sound investment opportunities and/or can help “future proof” your business’ real estate options, especially if your business is growing and will require more space in the future
• The influx of options coming to market will provide you with some great solutions if your business is currently just “making do”
• Prices for existing strata will increase with the new strata pricing, so if you own your current premise then this is a time to watch the market closely and revisit your personal and business’ financial goals to assess whether now may be a good time to sell

Key Takeaways for Industrial Developers and Landlords

• Strata prices for industrial strata units in West Abbotsford are expected to continue rising with these new projects coming to market, which will have a trickle-down effect on older strata units, other industrial assets and other markets.
• These projects will be testing the market and providing invaluable insight into what unit types and features are in highest demand; pay attention to project demand and pricing to inform your own future projects, purchases and/or retrofits
• Some businesses, especially those with major pain points in their current spaces, will upgrade to the new, customizable alternatives which will see some existing buildings lose tenants.

THE PROJECTS

Below are details regarding all the upcoming industrial strata projects in West Abbotsford:

1. MASON CORPORATE CENTRE

2188 Mason Street, Abbotsford

• 135,861 sf total building footprint
• Unit sizes 9,639 – 15,555 sf + mezzanine
• 7.14 acres total site size
• Dock and grade loading
• Completion expected Q2 2020
• Built by Beedie

2. FOY BUSINESS CENTRE

1891 Foy Street, Abbotsford

• 97,424 sf total building footprint
• Unit sizes 8,703 – 8,878 sf + mezzanine
• 5 acres total site size
• Dock and grade loading
• Completion expected Q3 2020
• Built by Martini Construction

3. FUTURE STRATA PROJECT ON KING ROAD

31787 King Road, Abbotsford

• 111,000 sf total building footprint
• Unit sizes: 10,207 – 14,255 sf
• 4.45 acre total site size
• Dock and grade loading
• Completion Q1 2021
• Built by Cedar Coast

4. MT. LEHMAN BUSINESS CENTRE

Great Northern Way, Abbotsford

• 57,680 sf total building footprint
• Unit sizes: 2,100 – 33,800 sf
• 2 acres total site size
• Dock and grade loading
• Completion Q2 2020
• Marketed by William N. Hobbs Personal Real Estate Corporation of Cushman & Wakefield & Ken Neufeld of Homelife Glenayre Realty Co. Ltd.
• Built by Bartek

5. FUTURE STRATA PROJECT ON FOY STREET

1812 Foy Street, Abbotsford

• 103,000 sf total building footprint
• Unit sizes: TBA
• 5 acres total site size
• Grade loading
• Completion TBA
• Built by Glassworld

6. FUTURE STRATA PROJECT ON IRON MILLS COURT

2185 Iron Mills Court, Abbotsford

• 22,000 sf total building footprint (approx.)
• Unit sizes: TBA
• 1 acre total site size
• Grade loading
• Completion TBA
• Built by Cordovado

If you would like any further information on the above strata projects and how they will impact the West Abbotsford industrial market, please don’t hesitate to contact us.

Sources: City of Abbotsford, Commercial Edge, CLS
Project details, site plans and renderings courtesy of Beedie, Martini Construction, Cedar Coast, & Cushman and Wakefield