{"id":18391,"date":"2021-08-16T10:10:00","date_gmt":"2021-08-16T17:10:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=18391"},"modified":"2021-08-11T09:12:50","modified_gmt":"2021-08-11T16:12:50","slug":"demand-for-e-commerce-warehousing-increasing-pressure-on-builder-municipalities","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2021\/08\/demand-for-e-commerce-warehousing-increasing-pressure-on-builder-municipalities\/","title":{"rendered":"Demand for E-Commerce Warehousing Increasing Pressure on Builder &#038; Municipalities"},"content":{"rendered":"<p style=\"text-align: justify;\">Demand for Metro Vancouver industrial space has skyrocketed, and regulators need to find ways to streamline the application process for more space to be built, one industry official said.<\/p>\n<p style=\"text-align: justify;\">Josh Gaglardi, principal at Surrey-based industrial\/commercial construction firm Orion Construction, said the space shortage is so acute that industrial space developers and owner-users are looking well beyond their usual potential sites to secure what they need.<\/p>\n<p style=\"text-align: justify;\">\u201cWe\u2019ve seen major industrial business parks being proposed today that would not be considered feasibly even five, 10 years ago,\u201d said Gaglardi, whose company\u2019s major projects include the 428,000-square-foot Coastal Heights Distribution Centre and the 443,000-square-foot Pacific Corporate Centre.<\/p>\n<p style=\"text-align: justify;\">\u201cBeing on the forefront of working on new greenfield and brownfield projects in the Lower Mainland, we see that there\u2019s very little industrial land remaining, and it\u2019s increasingly shrinking in both Metro Vancouver and the Fraser Valley,\u201d Gaglardi said. \u201cWe\u2019ve got mountains to the north, the border to the south and water to the west, so we continue to push east. But we are running out of industrial land opportunities, and the remaining sites are challenged by a myriad of limitations.\u201d<\/p>\n<p style=\"text-align: justify;\">An Avison Young report from May showed Metro Vancouver\u2019s industrial vacancy rate at 0.9%, and the increased pace in development meant that 82% of available land in 2015 is now being developed. Gaglardi added that while demand has been steadily increasing for years, that demand has spiked sharply in the last six to nine months. He attributed the demand surge to the meteoric rise of e-commerce and the increasing need for companies to have logistics space for storing goods and products.<\/p>\n<p style=\"text-align: justify;\">Given the public\u2019s adoption of e-commerce as the preferred way to do business post-COVID, Gaglardi noted the demand for Lower Mainland industrial space will continue to grow. That gives the province an opportunity to expand the economy coming out of the pandemic \u2013 or to let that economic benefit evaporate through inaction.<\/p>\n<p style=\"text-align: justify;\">\u201cThrough the pandemic, people were forced to adopt new technology that maybe they wouldn\u2019t have been so eager to learn otherwise,\u201d Gaglardi said. \u201cIt has expedited what we see in light-industrial growth \u2026 and I think we will continue to see our industrial land demand driven by these e-commerce companies across multiple sectors.\u201d<\/p>\n<p style=\"text-align: justify;\">He added that companies have been looking at sites even with provincial or municipal requirements on stream-site setbacks, as well as those with challenging topography. That\u2019s why, Gaglardi said, it\u2019s crucial that municipalities and other government organizations free up the supply that is available in the market. Industry officials noted that projects often get bogged down at municipal levels, where staff shortages mean significant delays \u2013 even before the provincial regulators get involved.<\/p>\n<p style=\"text-align: justify;\">Gaglardi said the biggest increases in application delays have been in Langley City, Langley Township and Abbotsford \u2013 places where most of the available industrial land is. These municipalities are therefore facing a double-whammy of higher volumes of applications and a dearth of staff to process those applications.<\/p>\n<p style=\"text-align: justify;\">\u201cThat\u2019s where the growth is happening,\u201d Gaglardi said. \u201cAnd some of these sites are increasingly moving closer to provincial water bodies, and a referral to the province can mean as much as a 12-month delay on these projects.<\/p>\n<p style=\"text-align: justify;\">\u201cWe always try to push the municipalities and the provincial government to prioritize employment lands,\u201d he added. \u201cOur projects provide jobs and benefits to the economy, so we try to push those as high priority, even though it\u2019s tough because housing supply is also so restricted. But we do provide a lot of benefits to local communities.\u2026 It\u2019s just that industrial warehousing is, for the lack of a better term, not as sexy as residential. So we don\u2019t see the priority we think we should see being placed on employment lands.\u201d \u2022<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/biv.com\/article\/2021\/08\/pandemic-drives-surge-industrial-land-demand\" target=\"_blank\" rel=\"noopener\">Pandemic Drives Surge in Industrial Land Demand<\/a> by Chuck Chiang | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Demand for Metro Vancouver industrial space has skyrocketed, and regulators need to find ways to streamline the application process for more space to be built, one industry official said. Josh &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2021\/08\/demand-for-e-commerce-warehousing-increasing-pressure-on-builder-municipalities\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-18391","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Demand for E-Commerce Warehousing Increasing Pressure on Builder &amp; Municipalities &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2021\/08\/demand-for-e-commerce-warehousing-increasing-pressure-on-builder-municipalities\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Demand for E-Commerce Warehousing Increasing Pressure on Builder &amp; Municipalities &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Demand for Metro Vancouver industrial space has skyrocketed, and regulators need to find ways to streamline the application process for more space to be built, one industry official said. 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