Campbell Heights Industrial Market Report Jan 1, 2024 - Dec 31, 2025

Campbell Heights Industrial Real Estate Market Outlook for 2025

Campbell Heights in Surrey, BC, remains a critical industrial real estate hub within Metro Vancouver. The region has seen significant shifts in the past year, influenced by economic trends, policy changes, and new developments. In 2024, Metro Vancouver's industrial market saw three Bank of Canada interest rate cuts, reducing the rate from 5.00% to 4.25%. This monetary easing coincided with an increase in vacancy rates, as large industrial spaces became available. Despite this, Surrey, Langley, and Coquitlam maintained positive absorption rates, driven by strong leasing momentum and a steady pipeline of new supply.

Notable Transactions

A standout deal in Campbell Heights was the sale of a 6.72-acre, 130,000 SF Cold Storage Facility at 3023 188 Street for $63 million. Klondike Cold Storage This transaction underscores the strong demand and rising values in the area.

South Campbell Heights Expansion: A Game-Changer

One of the most significant developments is the South Campbell Heights Local Area Plan, which was approved by Surrey City Council on December 16, 2024. This plan will add 249 hectares (615 acres) of industrial land between 20th Avenue and Eighth Avenue, helping to address the industrial land shortage in the region.

Why This Expansion Matters

Increases Land Availability: This alleviates Metro Vancouver's industrial land crunch.

Boosts Economic Growth: Expected to be fully developed within a decade, bringing in new businesses and jobs.

Enhances Strategic Positioning: Its proximity to the Pacific Highway U.S. border crossing makes it an attractive site for manufacturing and distribution operations.

The Surrey Board of Trade has welcomed this expansion, citing its potential to strengthen domestic manufacturing and position Surrey as a leader in BC’s industrial economy.

Market Sentiment and Future Outlook

Despite recent interest rate cuts, the market sentiment remains cautiously optimistic. While the rising vacancy rate signals a shift to a more tenant-friendly market, the South Campbell Heights expansion and ongoing industrial demand indicate that the area will continue to be a sought-after location for investors and businesses.

Key Market Trends

Higher Vacancies = More Negotiating Power for Tenants

Sustained Industrial Demand in Surrey

Growing Interest in Sustainable & Green Industrial Developments

Opportunities and Challenges

Prime Buying Conditions: With rising vacancies and softening prices, investors and users looking to expand have a chance to acquire well-located industrial assets at competitive prices.

Strategic Location: Close to major highways, the U.S. border, and Metro Vancouver’s core industrial hubs.

New Supply Coming: Upcoming pre-sale industrial projects are set to complete soon, offering state-of-the-art facilities for logistics, warehousing, and manufacturing.

Rising Construction Costs: Industrial development costs have surged due to inflation, material shortages, labor expenses and rising DCC costs. These rising costs have affected developers’ pro formas, influencing land values and demand from developers.

Slower Absorption Rates: With more industrial space hitting the market, some properties are taking longer to lease or sell. While demand remains strong, tenants and buyers are being more selective, leading to longer negotiation periods and potential price adjustments.

Salient Facts

In 2024, there were in total 17 industrial property sales.

13 Sales were strata units, 2 Land and 2 Freestanding Buildings.

Small bay industrial strata units are selling at an average of** $590 per SF.

Large bay **industrial strata units are selling at an average of **$520 per SF.

Asking Prices range from $524 - $675 per SF.

Small bay industrial strata units lease for an average of $21 per SF triple net.

Large bay industrial strata units lease for an average of $18 per SF triple net.

Over 80% of industrial purchasers in Campbell Heights in 2024 were end-users.

Final Thoughts: What to Expect in 2025

Continued Growth: With the South Campbell Heights extension finalized, New Industrial Parks and projects will drive further investment.

Buyer’s Market Conditions: With higher vacancies, investors have stronger leverage to negotiate better terms.

New Pre-Sale Completions: Expect the completion of several high-quality industrial developments, providing opportunities for end-users and investors.

As Campbell Heights evolves, it remains a top-tier industrial hub in BC, offering compelling opportunities for developers, businesses, and investors. While challenges remain, strategic planning and market awareness will allow savvy buyers to capitalize on the shifting landscape in 2025.

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