Photo: MCL Real Estate Group
A Kelowna commercial real estate agent believes the demand for large warehouse, shipping and fulfillment facilities will only increase this year as the e-commerce economy takes off in the wake of the COVID-19 pandemic.
Kris McLaughlin, who is MCL Real Estate Group’s senior commercial advisor and team lead, says that will be part of the local commercial real estate market’s rebound, which he sees occurring in the second half of this year.
“Quality industrial product from existing inventory was highly sought after in 2020, with small bay strata units selling steadily (and) multiple offers on select units,” said McLaughlin, who is a member of the Re/Max Kelowna team.
McLaughlin pointed out that industrial’s cheaper rents and larger footprints appealed to broader base by mid-year, with retail-type tenants new to the digital marketplace buying and leasing units that could warehouse inventory and provide for a direct shipping base. By the end of last year, McLaughlin said, most industrial activity was in the North Kelowna industrial area, Airport Business Park and the downtown north end.
“Industrial development will likely continue unabated as demand for pre-leased and pre-sold strata units remains unsated,” McLaughlin wrote in his report.
McLaughlin sees vacancy rates remaining low for the most part. Warehouse space should be around 2%, while retail (4.25%) and office availability (4.5%) is not expected to change drastically.
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