Low vacancy rates and the upcoming completion of the South Fraser Perimeter Road are putting pressure on industrial real estate in Delta, real-estate firm Avison Young reported July 30.
Avison Young noted that while the dollar value of deals in the area in 2012 was the lowest since 2008, at $74 million, the number of transactions, at 30, was the highest.
In the first half of 2013, 19 deals worth a total of $65.6 million have been completed. Avison Young attributes the activity to continuing low interest rates.
The low number of properties available for sale has also contributed to the crunch. Vacancy rates are currently at 6.9%, down from 7.5% in spring 2012.
Developers also have several speculative projects under construction in the area, including:
- South Fraser Industrial Centre, developed by Triovest;
- Boundary Bay Industrial Park, developed by Dayhu Group; and
- Millennium V, developed by Grosvenor.
