The first phase of the West Kelowna industrial park is already sold.
Image Credit: SUBMITTED / Denciti Development Corporation
November 20, 2019 - 5:00 PM
The shortage of industrial land in the central Okanagan means the new West Kelowna industrial park has sold out the first phase of what will be the largest such project in the city.
Construction of the first, 75,000 square foot building in the park on Kyle Road in West Kelowna only started in October. It was bought by a Vancouver investor in order to lease it out, according to a news release from developer Denciti Development Corp.
"Continuing a three year trend, vacancy rates are declining - sitting at sub one per cent currently – and lease rates are rising, having increased 8.6 per cent over the past year,” Steve Laursen, a commercial real estate broker with Royal LePage in Kelowna, said in a statement issued by Denciti, a Vancouver-based development company. “Occupants are looking for longer-term solutions for their business but are having trouble finding quality available space.”
Kelowna has about 10 million square feet of industrial space but only about 80,000 square feet are currently available to lease.
Almost 200,000 square feet are under construction in Kelowna with most of that already spoken for.
The West Kelowna industrial park, once the remaining two phases are built, will total about that same amount – 200,000 square feet.
With industrial land costs in Kelowna being about one-third of the costs in Metro Vancouver, many Lower Mainland businesses are looking at setting up shop here, Denciti says.
The blue area shows the location of the new industrial park in West Kelowna.
Image Credit: SUBMITTED / Denciti Development Corporation
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