Amazon building construction May 2021

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Riverbend Business Park,
Big bend, Burnaby, British Columbia, Canada

Oxford Properties is building this 707,000-square-foot facility at its Riverbend Business Park in Burnaby, B.C.

Another version of the stacked industrial concept is under construction in suburban Burnaby, where Oxford Properties Group is building a two-storey, 707,000-square-foot industrial facility at the company’s 65-acre Riverbend Business Park. Located on a site that once served a former paperboard milling plant and a 14-acre landfill, the master-planned park will house a total of six warehouse and distribution facilities (four are already built) and offer a variety of employee-friendly amenities.

The multi-level building, set to open in mid-2022 with LEED-certified environmental ratings, has ground-floor space of 437,000 square feet and a higher-than-average ceiling height of 32 feet for extra clearance and 270,000 square feet on the 28-foot-high second floor that includes its own-level parking for tenants. The building will have a heated exterior ramp for 53-foot trailers to make deliveries and a 130-foot court for trucks to circulate.

“A lot of thought went into the design to make sure this building functions as any other standard distribution building,” says Jeff Miller, Oxford’s head of industrial properties. “We didn’t want to sacrifice any physical attributes for having this building stacked.”

While the two Vancouver projects are among the first in Canada, stacked buildings are well established in other global centres, in Asia and parts of the United States, where industrial space is at a premium and demand runs high from tenants with a growing e-commerce business.

In 2018, San Francisco-based Prologis Inc. built a first-of-its-kind three-floor industrial warehouse close to downtown Seattle, including second-storey access for tractor-trailers. The 590,000-square-foot facility includes Amazon and Home Depot as its first- and second-storey tenants, respectively.

“As retailers look to cut delivery times from days to hours, particularly due to the rise of e-commerce, it is critical for them to locate their distribution facilities closer to consumers,” Prologis director of corporate communications Paul Frankle stated in an e-mail. “Going vertical is one of the innovations Prologis has developed as a way to provide our customers with modern space near consumers in dense, urban areas. While multi-storey logistics facilities are fairly new to the U.S., we have been developing multi-storey logistics facilities for years in other markets around the world, most notably in Japan.”

Still, stacked industrial buildings come with challenges. A 2019 report by Colliers International cites industry estimates that these vertical buildings cost up to three times as much to build as a conventional warehouse. Oxford’s Mr. Miller says, “the market fundamentals need to be really strong to justify this type of construction.”

The upside of going higher, of course, is the potential for more rentable space from the same-size lot as a conventional building.

Mr. Smith, of Colliers, says he knows of several groups in Vancouver now weighing plans to build stacked industrial projects over the next three to five years.

“When I have been asked to provide purchasers with a list of options to stay in Vancouver, they might have only one option,” he says. “Now these stacked industrial projects are providing them with a few more options where they can expand and stay [close to their markets].”
www.oxfordproperties.com/corp/leasing/en/Industrial/prope...

Taken in: Canada / British Columbia / New Westminster / Connaught Heights (show map)

Taken on: May 28, 2021

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