A new, five-storey office and light industrial building planned for the corner of Adanac and Clark Drive in East Vancouver will add 55,000 square feet to the marketplace.
Union Allied Corporation is developing the new strata building, which features a modern, industrial design. Owners will enjoy a 5,000 square feet patio area, as well as two-levels of underground parking, bicycle parking and end-of-trip facilities.
Michael Chiang, Director of Investment and Acquisition at Union Allied Corporation, says they are hearing from many potential end-users who see the advantages of purchasing space over leasing.
“Usually when a tenant leases commercial space it is triple-net meaning that they are responsible for paying the operating expenses and property taxes on top of their existing base rent. The only difference between in cost purchasing and leasing is that instead of base rent they pay interest to the lender and given the low interest environment it is comparable to the cost of base rent.”
Chiang says the recent acceleration in global e-commerce during the pandemic is boosting demand across the city, which is already supply constrained.
“The city has to undergo a re-shuffle where people who have existing amenities (i.e. grade access/dock loading) need to begin asking themselves if they need it given the high cost of these spaces or, if their business is of a lighter industrial use and can survive in a multi-level environment,” he says.
“Moving forward, the way to adapt is to develop true logistics based multi-level industrial like that have in other parts of the world that have limited land like Hong Kong, Japan and Taiwan,” adds Chiang.
The architect on 1308 Adanac is TKA+D (Taylor Kurtz Architecture & Design).