Despite challenges such as high-interest rates and inflationary pressures, the Canadian industrial sector experienced significant growth in 2023, with 144 industrial projects totaling 25.9 million square feet, 41.1% of which were pre-leased.
The landscape continues to evolve, especially in regions like Vancouver where industrial land scarcity remains a pressing issue.
Cameron Archer from Orion Construction sheds light on the trends shaping the British Columbia industrial market this year.
Can you provide more insights on the increase of activity within the entire industrial market particularly in the strata market, at the start of 2024 and how do you see this as a trend as the year plays out?
CA: Certainly. Businesses today are increasingly conscious of interest rates and cost management. This awareness drives them to prioritize the creation of adaptable environments that can flexibly meet their evolving needs.
At Orion Construction, we are seeing a trend toward more technology-driven designs. This ensures that the future of our client’s businesses is fully taken into consideration during the decision-making process today. To do this, technology like Building Information Modelling (BIM) allows us to efficiently use limitations like space and budgets to future-proof our buildings. The emphasis is on constructing spaces that not only meet current requirements but can also be easily adjusted to address future changes in operations or market demands.
For example, we are building a 296,000 sq. ft. food processing facility in Surrey for Nanak Foods which will include state-of-the-art, automated processing lines for manufacturing their current food products, but with the use of BIM technology, this facility will have the potential to expand both the range and volume of production ensuring the business’ long-term viability. This facility will also include a daycare center.
Recognizing the value that these types of resources add not only to staff but to the greater community is critical in new development. Incorporating a daycare within the premises is set to enhance the appeal of this workplace and enable Nanak to remain competitive.
How are municipalities helping with this process and how do the Canadian Government’s immigration targets affect the industry?
CA: The maintenance of high immigration targets by the Canadian government puts pressure on municipalities to keep pace with residential and multifamily demands. Improved municipal processing timelines are essential to facilitate timely construction projects. Municipalities are revamping their systems, adopting advanced evaluation tools, and integrating innovative technologies to expedite processing timelines.
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We’re seeing an increased demand for design-build services and upfront management services to be able to provide the highest quality and density projects to help eliminate the housing strain that is in line with meeting government targets. At Orion, our BIM specialists leverage clash interference models and layout analysis to optimize our projects which help streamline municipal processes.
The emphasis on Net Zero Building is gaining momentum globally. How is this trend manifesting in the B.C. industrial sector?
CA: Sustainability has become a paramount concern across industries, and the industrial construction sector is no exception. The magnification around Net Zero Building in B.C. is driving a surge in initiatives aimed at reducing carbon footprints and promoting environmental responsibility. This includes not only retrofitting existing structures but also integrating sustainable practices into new developments.
Recognizing these trends, the industry is adapting. Orion’s Green Building Retrofit program performs a comprehensive analysis of a building’s operation and built environment efficiencies. Our goal is to provide strategies that elevate the building’s class rating while lowering its environmental footprint. This not only makes the building more attractive to owners but also to potential tenants.
Net Zero and LEED certifications are increasingly becoming standard practice, reflecting a collective commitment to building greener, more efficient spaces that align with our country’s environmental goals. This market trend is evident in our current pipeline boasting over 1.83 million sq. ft. of Net Zero projects. This stands as a testament to the possibility of the built environment coexisting harmoniously with the environments in which we build.
In the dynamic industrial market of British Columbia, it’s crucial to embrace innovations for superior build-outs, accelerated municipal processing timelines, and Net Zero Buildings. This approach is essential to stay competitive and cater to the evolving needs of businesses, communities, and their respective environments.
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