Speculation pays off as large industrial build fully pre-leased

A bold speculation by Sun Life Financial and BentallGreenOak has paid off with the complete pre-leasing of a 343,000-square-foot distribution centre in Campbell Heights, Surrey, B.C., more than six months before its completion.

Construction began at the state-of-the-art, purpose-built distribution space in early 2021, with delivery slated for the second quarter of 2022.

The new development offers build-to-suit office improvements, 32-foot clear heights, a 180-foot truck court between buildings and is targeted to LEED (leadership in energy and environmental design) certification.

Cushman & Wakefield executive vice-president Sean Ungemach, vice-president Andrew Green and associate vice-president Eric Rice represented ownership in leasing the new two-building, 343,000-square-foot 188th Street Industrial Centre in Campbell Heights.

18 Wheels Logistics leased the entire 178,000-square-foot Building B, while NRI Distribution, with 102,488 square feet, and D&H Distribution, with 62,512 square feet, leased Building A.

“Lease-up of 188th Street Industrial Centre is certainly a testament to its quality and location, but it’s also indicative of a historic market,” Rice said. “In Campbell Heights and around the region, we’re seeing demand from large industrial users at an all-time high in a market that’s less than 1 percent vacant. We expect this situation to continue for the foreseeable future as logistics and e-commerce demand continues to surge.”

Surrey’s industrial vacancy rate is 0.6 per cent, according to a third-quarter 2021 report from Cushman & Wakefield. The average net rent in Surrey is $12.45 per square foot.

The leasing price of 188th Street Industrial Centre apparently ascended higher than Surrey’s average, in reflection of demand, the location and quality of the development.

“The original pricing guidance was $13.50 per square-foot, “ Rice said. “However, that message shifted upwards in accordance with the market.”

188th Street Industrial Centre is located in Campbell Heights, one of the largest industrial parks in Metro Vancouver. It provides easy access to Highway 99, Highway 91, Highway 15, Highway 10 and Highway 1 and is only minutes from the U.S. border crossing, Rice added.