Small businesses spur Burnaby industrial deals

Small and medium-sized businesses are driving an industrial real estate recovery in Burnaby, says a new Avison Young report.
Broker Kyle Blyth, who specializes in Burnaby industrial sales and leasing transactions, says small and medium-sized companies are helping to maintain the Vancouver suburb's traditionally stable conditions. Traditionally, after a downturn, he says, smaller industrial owner-users re-enter the market first and then larger companies come back.
Although Burnaby vacancy has notched up to 3% from 2.6% in the fall of 2009, it is still well below the Metro Vancouver average of 4.7%. Older properties needing renovation or redevelopment have slightly skewed Burnaby's rate upward.
But properties with high ceilings, good visibility and exposure, and easy access to arterial routes are in high demand. Meanwhile, landlords, well educated on market conditions, are offering new tenancies or retain existing ones.
Existing tenants will likely be able to capitalize on more favourable lease rates as they act on long-term needs that have been put off pending the global economic recovery.
In the few cases where developable land is available, developers will be asked to pay a premium. Lawrence Green, president of Spire Development Corporation can relate.
His company paid $1.4 million per acre for land where the new Spire Corporate Centre on North Fraser Way is located.
According to Blyth, strata-ownership projects, which help offset high land costs, are likely to increase. As the report notes, the Beedie Group, is also developing strata projects in South Burnaby.
Notable leases include Core-Mark International renewing on 70,000 square feet (sf) at 7800 Riverfront Gate while Mustang Survival (45,000 sf), Japan Foods (40,000 sf), Dynamex Couriers (30,000 sf) and Shoppers Home Health Care (20,000 sf) inked new rental agreements.

Beedie named top Pacific entrepreneur

Commercial real estate developer Ryan Beedie has been named the Pacific region's Ernst & Young Entrepreneur of the Year.
"At a time when entire economies and industries are reeling from the financial crisis and recession, the need to innovate and be entrepreneurial has never been more urgent," said Fred Withers, director of the Ernst & Young Entrepreneur Of The Year Awards for the Pacific region, in a news release. "It's important we recognize these exemplary entrepreneurs like Ryan Beedie, who are driving our economy forward. Ryan has built his family's thriving business into a modern leader in real estate development."
Beedie is president and CEO of the family-owned and operated Beedie Group, the largest private land owner in B.C., which specializes in the design, construction and management of industrial and commercial buildings in Metro Vancouver and Alberta. The group's real estate portfolio comprises approximately six million square feet in primarily industrial buildings.
Beedie is also this year's business family category winner. His father Keith founded the 55-year-old group.
"This year's exceptional group of Entrepreneur Of The Year Award winners proves that passionate people who nurture good ideas can deliver solid results and returns over the long term," said Withers. "Entrepreneurs can follow Ryan Beedie's lead, and seize these daunting times as an opportunity to sharpen their focus, stand out from the crowd and move the markets forward. Even in the particularly hard-hit real estate industry, Ryan is making great strides and inspiring others to follow suit."
The news release also praised the Beedie family's charitable efforts. The Keith & Betty Beedie Foundation aids a number of health, education and other community initiatives, while Ryan Beedie's annual community service award benefits Simon Fraser University students.
He has also participated with and financially supported the Lions Gate Hospital Foundation, Family Services of the North Shore Foundation, and BC Children's Hospital.