Industrial Strata Deals Take a Tumble

Surrey and Langley’s industrial strata markets have seen a big dip in deals so far this year, which Frontline Real Estate Services’ Joe Lehman tells us has much do with unrealistic vendor pricing expectations. “There are a lot of resale listings, and for a lot of them, the asking price is just too high.” Lack of quality product also contributed to the slowdown, he says. Surrey and Langley had 17 deals between April and June of this year, versus 27 transactions during the same period last year. That’s a 37% drop.

Joe sees things picking up in the coming quarters, though, with new industrial strata developments launching and projects currently under construction getting completed. Beedie Group has three strata projects underway, including one in Langley’s Gloucester Industrial Estates (shown above) that will add 86k SF to the market. In Campbell Heights Business Park there is more than 200k SF of strata space available for sale. And there are two smaller-scale developments in Cloverdale and one under construction in East Newton. Joe anticipates as many as six strata projects coming online in the next 18 months.

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