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Kelowna’s commercial property market is “somewhat volatile” because of a shortage of supply and tough competition for space, a real estate group in the city has said.
MCL’s latest review found that a newcomer to the market – cannabis – is also adding to a rise in prices.
The industry’s “voracious appetite” for space has contributed to an increase in rates on industrial property of between 10 and 15%, the review explained.
Vacancy rates are at 1.5%.
But it isn’t just industrial property being affected – the MCL report highlights that cannabis firms are also on the hunt for land to place their growing operations, processing facilities, research and development teams and retail outlets.
The average lease rate for industrial property in Kelowna is estimated at between $10–15 per square foot.
Retail is $10–37 per square foot and office space is $9–26.5.
MCL predicted a “slow increase” in rates for commercial property overall.
Property value assessments, meanwhile, show declines of between 4–8% for large retail developments.
The top 10 are:
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Orchard Park Mall – $296,202,000
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Delta Grand – $79,761,000
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Orchard Plaza – $70,653,000
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Spall Plaza – $54,201,000
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Baron Centre – $54,337,000
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Capri Centre Mall – $51,121,000
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Landmark 6 – $48,025,000
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IHA Building – $46,911,000
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Central Park East – Walmart – $45,567,000
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Dilworth Centre – $44,871,000
The report is also optimistic about the future, with Kelowna and the Okanagan expected to attract more businesses from the Lower Mainland when new property – including Landmark 7 – is constructed.
MCL said that over the next few years more than two million square feet of commercial space is either being built or has been proposed.
To read the full report, click here.
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