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Mixed-use industrial projects are becoming significant in Metro Vancouver and other Canadian cities, contributing to economic growth and development. These projects bring together diverse business types within industrial parks, fostering collaboration and innovation, which in turn leads to job creation, increased investment opportunities, and an overall economic boost. The integration of supportive businesses, such as gyms, childcare, and healthcare services, enhances employee well-being and productivity, attracting talent balancing professional and family life. Additionally, the inclusion of self-storage addresses both personal and business needs, while professional services companies benefit from proximity to the businesses they serve.
Mixed-use projects offer notable benefits, including opportunities for expansion and profitability. With industrial availability rising in Canada, businesses have more leasing options, particularly in tight markets like Metro Vancouver. These projects maximize space through design-build approaches, incorporating elements like daycare, self-storage, or additional commercial components to offset high land and construction costs. This creates future operating income, supporting the development's financial viability. Studies show an oversupply of parking, indicating potential for adding more uses and increasing density within industrial complexes, thus better utilizing available space.
The trend towards building density is evident in cities like Metro Vancouver, GTA, and Montreal, with local governments adapting zoning policies to support this shift. Transit-oriented developments and updated Official Community Plans (OCPs) facilitate increased density, though challenges remain, such as poor soil conditions, high land value, and construction costs, exacerbated by upcoming B.C. Building Code changes. Despite these complexities, mixed-use industrial developments represent a forward-thinking approach to land use, opening new possibilities for transitional industrial parks and innovative asset class applications.
Read the full article on: REAL ESTATE MAGAZINE
