New South Campbell Heights project will deliver 1 million square feet of industrial space
One of Western Canada’s leading privately owned real estate developers has officially started work on a major industrial project that is expected to create new opportunities for logistics companies and other businesses as industrial space across Metro Vancouver becomes increasingly limited.
Beedie recently broke ground on the South Campbell Heights Business Park, a 60-acre development located in Surrey, British Columbia. Once completed, the project will offer approximately 1 million square feet of industrial space in the province’s second-largest city.
According to the Burnaby-based developer, a major automotive company has already signed a lease for space in the first 20-acre phase of the project. The initial development, located at 19084 20th Avenue, is scheduled for completion in early 2028.
The expansion adds to the growing Campbell Heights industrial district, which spans nearly 1,900 acres in southeastern Surrey. The development comes at a time when industrial leasing activity is gaining momentum throughout the Vancouver region.
A recent midyear industrial market report from Avison Young indicates that businesses across Metro Vancouver are becoming more willing to move forward with real estate decisions after months of uncertainty caused by tariffs and global economic challenges.
Demand has been particularly strong for industrial properties ranging from 20,000 to 80,000 square feet. Although leasing activity has improved, overall transaction volumes remain below the record levels seen in previous years, the report noted.
Metro Vancouver’s industrial vacancy rate has declined to 3.8%, compared with 4.2% at the end of last year. Several major companies, including Pantos Logistics, D-Home, and S&S Activewear, have recently secured large industrial facilities in Surrey and Delta, contributing to the tightening market.
The Vancouver region is also nearing the end of an unprecedented industrial construction cycle that has added approximately 11.2 million square feet of new industrial inventory over the past three years.
During the past year, developers completed just under 2 million square feet of industrial space, a noticeable slowdown compared with the previous two years, when more than 9 million square feet of industrial projects were delivered, according to CoStar market data.
At the same time, developers have become more cautious about launching speculative industrial projects. Most of the roughly 2.8 million square feet currently under construction has already been pre-leased and is being built specifically for committed tenants, based on CoStar analytics.
The new business park also aligns with Surrey’s rapid residential and commercial growth. The city’s population, currently estimated at around 735,000 residents, is projected to reach approximately one million over the next 20 years, further increasing demand for industrial and commercial development.
Source: Original reporting by Randyl Drummer, CoStar News.
