A lack of developable land is putting pressure on commercial property values, according to the CEO of the Tri-Cities Chamber of Commerce.
Mike Hind said rising land costs have become an issue across the region and policy makers need to do more to ensure parcels are retained for industrial use.
"There is a definite lack of supply that is driving those assessments up," he said. "We need to continue to work with everybody to keep those lands protected."
The Tri-Cities have seen a significant increase in the average valuation for industrial property in 2018, rising 25.2% in Coquitlam, 25.4% in Port Coquitlam and 22.2% in Port Moody.
David Munro, Coquitlam's manager of economic development, said evidence of the high-demand for industrial properties can be seen in the vacancy rates in the Tri-Cities.
According to commercial real estate services firm Avison Young, industrial availability is at 1.3% in Coquitlam and 2% in Port Coquitlam, a figure that the company expects will continue to fall over the next 18 months.
"Commercial and industrial lands are subject to the same value pressures as residential," said Munro, later adding: "Factors like the ocean, mountains, the U.S. border and the Agricultural Land Reserve in essence limit the lands available for development, and this in turn creates upward pressure on property values."
But the landscape could change for industrial property in the next few years.
Hind noted that when the new business park opens in Kwikwetlem First Nation land, it will add 120 acres and 1.6 million sq. ft of leasable industrial land in the Tri-Cities.
"That is the wild card," he added. "That could help immensely."
More BC Assessment stories here:
• Priced out of the neighbourhood?
• Big bucks for Tri-City commercial properties
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