Boundary Bay Industrial Park Is Driving Delta Leasing
Dayhu Group just launched construction on Phase 2 of Boundary Bay Industrial Park, the largest facility of its kind being built in the Lower Mainland (the size of 15 football fields). COO Paul Tilbury explains why the project has helped Delta outperform the rest of Metro Vancouver.
At 440k SF, BBIP's second phase will be nearly identical in size to the first, with a few key differences. Building 2's the only one on the market with 36-foot clear ceiling height. It'll also be slightly narrower than the first, notes Paul (snapped on site), providing deeper spaces for trailer parking. The modification was in response to lessons learned in Phase 1, and to the “ever-changing demands of the marketplace,” Paul says. The new building will capture rainwater on its roof to assist BBIP's agricultural neighbours with crop irrigation and frost mitigation. “It’s a way we can ensure there’s benefit for both parties when we look at delivering developments.”
Delta is Dayhu’s backyard. With the development of BBIP, the company owns and manages 2M SF within the municipality, half of its total 4M SF of industrial and commercial property across B.C. and Alberta. “This is a flagship project for us,” Paul says, one the company intends to retain ownership of for a long time. The productivity of an industrial building is a key factor for tenants in selecting a site. And BBIP’s second phase—with 55-foot column spacing, 125 trailer-parking spots, and 85 dock doors—delivers it. The project is slated for a fall 2015 completion.
BBIP’s first phase (above) is fully leased, luring firms with proximity to expanding Deltaport and the new South Fraser Perimeter Road. Tenants are Petvalu Canada, Farrow Distribution, Specialty Distribution and Apps Cargo; all have taken occupancy. With 440k SF leased there last year, BBIP was credited by CBRE for helping Delta outperform all other Metro Vancouver in total space leased in 2014. CBRE's Chris MacCauley called it the most successful speculative project he’s seen in the last five years. No one’s signed yet for Phase 2, but Paul says he’s working with a number of groups that have expressed “strong interest."
The success of the 47-acre BBIP has much to do with pent-up demand for an extremely limited supply of state-of-the-art, large-scale warehouse space in the Lower Mainland. It’s also indicative of a shift south of the Fraser River, Paul points out. The South Fraser Perimeter Road has fast become a major thoroughfare for truck traffic flowing from Deltaport to Highway 1. And changing demographics mean more employees are now living south of the river, says Paul. “The ability to have staff not cross bridges on their way to work is a compelling argument to relocate south of the Fraser."