Roy Grant of RE/MAX Check Realty
CAMPBELL RIVER – Like several other areas on Vancouver Island, Campbell River’s industrial and commercial real estate market is tight, but there’s been plenty of development in revenue generating properties.
Roy Grant of RE/MAX Check Realty notes there are a number of multi-family projects currently under construction in Campbell River, which is home to three major companies: Seymour Pacific Development, Crowne Pacific Development Corporation and West Urban Developments Ltd., and others, which are busy building.
“In the Campbell River market, for the most part, the developers hang onto their apartment buildings and keep them in their portfolios as revenue-producing properties, although some have been built and sold over the past years primarily to Real Estate Investment Trusts,” Grant notes. “The capitalization rates have gone down significantly in the past few years to reflect closer returns to the Lower Mainland, which is good news for local developers as they’re getting top dollar for their buildings.”
Such rental apartment projects range in size from 24 to 100 units, and Grant says the rental buildings are filling up quickly with tenants.
“One developer just completed a 100 unit apartment building and filled it up very quickly,” he adds. “All of these buildings are filling up right away, which is great for the builders, and thankfully it’s not to the detriment of other ‘seasoned’ apartment buildings. We are having good in-migration from other parts of BC, particularly from the Lower Mainland, Victoria and Nanaimo areas.”
Grant points out that the provincial government’s decision to purchase smaller hotels and motels to house the less fortunate is having an effect on the hospitality industry.
“That has put a lot of pressure on the remaining local hotels, motels and other accommodations and in the area as we get a significant number of tourists in the summer time, and it’s been a real strain this year – never mind the two years of Covid – because there is limited vacancy for people who come here to visit,” Grant observes. “This has had some negative effect on our tourism industry. Currently some developers are looking at available properties to build multi-room hotels in Campbell River. A hotel site would sell in a heartbeat if it were available now, and be fully occupied throughout the tourist season.”
Grant is excited about the new 93 room hotel for the Campbell River Golf & Country Club that is being built at 700 Petersen Road by Seymour Pacific.
“Their plan is to make it into more of a resort and possible plans for a future plans for a conference centre,” he says. “They have the concrete poured for the lower floor. It’s going to be quite significant, and will have a beautiful ocean view.”
Industrial property is at a premium, and is scarce.
“There is relatively no industrial property for sale or lease in Campbell River,” Grant reports. “I’ll be listing a property for sale in the next few days, but there are no buildings on it. There haven’t been any industrial lots available for quite a long time, and industrial growth is an issue the City could focus on a little more.
Grant notes that there is a long list of people wanting to invest in industrial serviced lots for their own business in the Middle Point area, just north of Campbell River. He may be able to take offers on them by November or December this year. He is also working with a north Nanaimo company on a five-lot subdivision first phase, and nine lots in the second phase.
The demand for commercial leases is also high in Campbell River.
“We definitely have a shortage here, but historically, our lease rates for office and retail are on the low side,” he states. “Lease spaces are very limited. About four years ago, I had a dozen spaces listed in a variety of different types, but those spaces are filled in and then some.
“The larger malls and corner malls are all virtually filled up. At Discovery Harbour Shopping Centre, for example, there’s limited available retail/office space and there are people clamoring for it.
“Investment, commercial and industrial real estate has been brisk in our community in the past few years,” he adds.