KELOWNA, British Columbia, March 17, 2020 – Nicola Wealth Real Estate (NWRE) along with development partner PC Urban Properties recently completed the first new Industrial Strata project in Kelowna, BC branded as IntraUrban Enterprise. The partnership purchased the 10-acre parcel in January of 2017 and sold two-thirds of the site to Kelowna Ford for a new state of the art auto dealership. The remaining third of the site was developed as “IntraUrban Enterprise” comprising two buildings totaling 66,000 square feet (sf) designed specifically for small bay industrial users. The property is centrally located at the prime intersection of Dilworth and Enterprise in one of Canada’s fastest growing cities.
The project offers strata units ranging from 2,000 – 3,900 sf featuring large front-load garage doors, built-in upper mezzanines, and natural light from a modern design with attractive glazing. The units were primarily acquired by owner-users for general industrial use with retail and office components. This project also attracted savvy investors seeking an opportunity to acquire brand new product for investment purposes.
“Kelowna is welcoming a new wave of business owners and investors to the city but the industrial supply here is constricted,” says Steve Laursen, broker with Royal LePage Kelowna. “IntraUrban Enterprise adds much needed supply to the marketplace. We’ve sold six units to investors who are now receiving leasing offers only a couple weeks after closing on five-year terms starting at $16.50 per square foot.”
Across Canada, industrial real estate is in high-demand in all major markets with minimal new supply coming on stream; Kelowna is no exception. With centrally located industrial and commercial strata opportunities in short supply, ownership is becoming the preferred choice of businesses looking to future-proof their location in a climate of rising rents.
Industrial vacancy rates are low across the province and Kelowna in particular has seen vacancy rates declining with figures currently below 1%. Due to Kelowna’s limited supply and the high land prices net lease rates continue to increase; 8.6% according to Colliers Thompson Okanagan Industrial Market Report Q3 2019.
Demand for new quality small bay industrial product is expected to remain strong as the population of Kelowna is projected to continue to grow at an average annual growth rate of 1.34% over the next 20 years*.
“There is an opportunity here for owner-users and investors alike,” comments Senior Asset Manager, Stephanie Marshall. “Owning real estate has proven to be a good long-term strategy given the current market conditions across Canada and locally in Kelowna. IntraUrban Enterprise has proven to be a popular product and we are happy to have been a part of the success.”
To learn more about the Nicola Wealth Real Estate funds, you can visit realestate.nicolawealth.com.
* City of Kelowna 2018 Population & Housing Report
About Nicola Wealth Real Estate
Nicola Wealth Real Estate (NWRE) is the in-house real estate team of Nicola Wealth, a premier Canadian financial planning and investment firm with $7-billion (CAD) of assets under management. NWRE has an experienced and innovative team that sources and asset manages a growing portfolio of properties in major markets across North America including a diversified range of asset classes including office, retail, industrial, multi-family residential, self-storage, and seniors housing. The current real estate portfolio is $4.0 Billion gross asset value.
About Nicola Wealth
Established in 1994, Nicola Wealth (nicolawealth.local) helps families and accomplished individuals across Canada build financial legacies with purpose, delivering the stability, security, and resources they need to focus on goals and aspirations that extend beyond wealth. The firm manages $7-billion in assets, providing portfolio diversification well beyond stocks and bonds, comprehensive and integrated wealth planning, and consistent and stable returns.