In one major stroke, Cedar Coast will expand Mission’s industrial inventory by a quarter.
The Vancouver-based developer broke ground July 16 on a 400,000-square-foot business park in the community, which neighbours Abbotsford and is located about 75 kilometres east of Vancouver.
Langley, B.C. builder Orion Construction will construct the Cade Barr Business Park, which is to eventually include four buildings that will represent over 25 per cent growth to Mission’s light industrial base. This will also be the first new employment land development in Mission’s Cedar Valley.
Located at the northeast corner of Dewdney Trunk Road and Cade Barr Street, the 18-acre site is expected to dramatically expand local business space while also providing two acres for a new fire hall to serve Mission.
Cade Barr Business Park will be built in two phases with Phase 1 including buildings A and B. The first phase is expected to complete by Q3 of 2025. Phase 2, which includes buildings C and D, will follow.
The plan for Cade Barr Business Park
Buildings A and D will consist of large-bay units, with buildings B and C providing small-bay units. The units have earned significant interest from local entrepreneurs, with more than 85 per cent of Phase 1 already pre-sold.
The main selling proposition is that new industrial space like this is more affordable in Mission, while having the same building quality as new developments located in other regional communities, said Aaron Fedora, Cedar Coast’s vice-president of development, in an interview with RENX.
“Given the strength of demand for those small-bay opportunities, we are going to start pre-sales in Building C imminently,” he said.
Fedora said data from the town shows that 67 per cent of Mission residents leave to work at their daily jobs or businesses. “This is an opportunity to deliver that new product at a price that’s actually affordable for the business owner.”
Buyers so far have been roughly half owner-users and half investors, Fedora said. Most of the users hope to scale-up their businesses to serve the Abbotsford, Chilliwack and Mission areas.
Among the buyers so far have been component manufacturers, a pet food company and a cabinet business: “Small businesses, locally-owned,” Fedora said. The zoning allows for a variety of uses, he said, noting “a dance studio” and a “climbing gym” as examples.
The Cedar Valley area surrounding the development site consists mostly of single-family homes with Mission City Hall located about 600 metres east on Dewdney Trunk Road. Northview Community Church and a Corrections Canada complex are also in the vicinity.
“It’s been an area . . . envisioned as employment lands for the last 25 years, essentially,” Fedora said.
A step forward for city’s growth strategy
“This initiative is a milestone, as creating local employment and neighborhood centres are important aspects of Mission’s community growth strategy,” said City of Mission Mayor Paul Horn in a release.
Mission’s population is just over 40,000 but it’s expected to grow substantially over the next decade.
“Additionally, we are diversifying our tax base, which lessens the burden on residential homeowners, while also creating local employment opportunities, which cuts down on the need to commute outside of the city for work. With such a short supply of flat, serviceable industrial land, this is an example of responsible, balanced growth that will benefit Mission for years to come.”
“Cade Barr Business Park epitomizes our dedication to crafting superior products and advancing innovative industrial spaces that improve both community well-being and support entrepreneurs and growing businesses, said Joshua Gaglardi, President of Orion Construction, in a release. “We look forward to welcoming new businesses to this exceptional development,”
Further interest rate cuts to help strata sales
The total vacancy rate for industrial space in the region was 2.1 per cent at the end of Q1, according to Avison Young data.
The overall availability rate has climbed to 4.3 per cent, with asking average rents of $21.79 per square foot. There’s currently about 4.8 million square feet of vacant industrial space in the Greater Vancouver and area market, according to the firm’s regional industrial market report.
The report says that anticipated further interest rate cuts will likely increase demand for strata units.
“While steadily rising rental rates have driven many tenants to invest in strata products over the past few years, high interest rates have made this more challenging in recent quarters,” the report said. “Some strata projects have not yet broken ground due to lower-than-expected pre-sales. However, with interest rates expected to decrease over the remainder of 2024, we anticipate a surge in demand for strata, particularly for premium products.”
Fedora said this is the company’s first industrial project in Mission.
Cedar Coast, a real estate development and investment firm, currently has 33 active projects in B.C., Oregon, Washington and North Dakota, representing over 4.4 million square feet of light industrial developments, 2,800 homes and condos, and 1,250 rental apartments when fully built out.
The focus in the Lower Mainland is mostly on industrial development, Fedora said.