Peter Mitham, Western Investor – Standing inventory in Kelowna’s industrial market is on track for absorption this year as buyers return to the market and leasing demand remains steady.

“Guys have had to pivot, and provide some inducements … but they’re still absorbing, and they’re still moving forward,” said Jeff Hancock, a Kelowna-based commercial broker with William Wright Commercial.

Hancock represents Lorval Developments Ltd., developer of Kyle Road Business Park, billed as West Kelowna’s “only large industrial purchase opportunity” with 115,000 square feet of space.

But like Blanleil, Hancock anticipates constraints down the road.

“We’re constrained up here when it comes to industrial land,” he said. “Some of these big pieces that are getting bought up that are in the path of growth, that you can tell will eventually be rezoned into some other use, that’s just going to continue to erode the overall industrial supply.”

He points to Mark Anthony Group’s purchase of the former BC Tree Fruits Co-op warehouse at 880 Vaughan Ave., Kelowna, a 5.2-acre property with 195,159 square foot of warehouse space. It’s being offered to the market for $13 per square foot, or $15 per square foot for demised portions.

“I don’t think they’re approaching that as a long-term industrial play. That site certainly has some pretty significant redevelopment and repositioning potential,” Hancock said. “Down the road, you’re going to see that turn into something significant.”

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Read the full article published by Western Investor.