While property prices have increased across the country, the demand for developed land in Kelowna has also been very strong. According to a new report from MCL Real Estate Group, the amount of developed industrial space in Kelowna increased 6.7 percent over the past year. The inventory has expanded by more than 700,000 square feet, bringing the total area to 11.4 million square feet.
Photo credit: SUBMITTED / MCL Real Estate Group
May 09, 2021 – 7:00 a.m.
While property prices have increased across the country, the demand for developed land in Kelowna has also been very strong.
According to a new report from MCL Real Estate Group, the amount of developed industrial space in Kelowna increased 6.7 percent over the past year. The inventory has expanded by more than 700,000 square feet, bringing the total area to 11.4 million square feet.
“Available inventory remains low,” said the report by Kris McLaughlin, a senior trading specialist and team leader for the company. “The land available for industrial development is still scarce, competition is increasing and we are seeing leasing rates and prices rising steadily.”
An additional 769,000 square feet of commercial space is under construction, while nearly 700,000 square feet are proposed for development, primarily in the North Kelowna Industrial Area, the North End of downtown and the Airport Business Park.
The new building has reduced the vacancy rate from just 0.9 percent last year to 1.9 percent this year, but the price for leasing or buying space has risen, the report says.
Land prices range from $ 850,000 in the North Kelowna Industrial Area to $ 2.3 million. USD in the Midtown industrial area. A property that was acquired by Dilworth Dr. was just under an acre, recently sold for $ 2.325 million per acre.
The retail sector’s shift towards more online sales has increased demand for warehouse space, and the growth of the cannabis industry has also boosted demand, the report said.
Photo credit: Submitted / MCL Real Estate Group
For example, Veritas Pharma Inc. is building a 10,000 square foot cannabis grow facility on the Okanagan Indian Band’s land at 8900 Jim Bailey Rd.
Flowr Corp and Hawthorne Canada Limited recently opened a 56,834-square-foot research and development facility and are planning a 315,363-square-foot indoor growing space at 9640 McCarthy Rd.
Another major project includes two 120,000 square feet buildings at 230 Beaver Lake Road. Most of this space is rented by Breathe Medical for the manufacture of medical masks. A third building with an area of 65,865 square meters is about to be completed.
The factory warehouse at Hyram Walker Court has 14 units spanning nearly 25,000 square feet, 11 of which have already been sold or are pending sale.
Nearby, the Jim Bailey Industrial Center will open later this year. It covers two hectares and 35,596 square meters with a number of its 17 commercial units already sold.
Older industrial buildings are also in demand. Two nearly 19 acres of land on Potterton Road with 1970s buildings sold for $ 28.25 million.
In terms of sheer size, North Kelowna’s industrial estate has 328 acres of land but is expanding to include an additional 23 acres being developed by the Okanagan Indian Band of 300,000 square feet of buildings. The Duck Lake Industrial Park is expected to take eight years to build.
Kelowna has 1,318 acres of industrial land with approximately 280 acres that are underutilized and another 450 acres that are earmarked for industrial use but not yet zoned, the report said.
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