Metro Vancouver officials are calling for the preservation of the region’s industrial lands as their supply continues to diminish.

The industrial lands account for just 4% of the region’s land area but generate a staggering $43 billion annually — approximately 30% of the region’s gross domestic product (GDP), according to a new report commissioned by Metro Vancouver and conducted by InterVistas Consulting. InterVistas based its findings on custom Statistics Canada data.

The report underscores the pivotal role industrial lands play in the local and national economy. According to the study, the region’s 11,500 hectares of industrial lands directly support 22% of Metro Vancouver’s jobs and indirectly contribute to 513,700 jobs across British Columbia and 584,100 jobs nationwide.

“This new research quantifies what many have long understood: industrial lands punch far above their weight in the economy,” Mike Hurley, chair of Metro Vancouver’s board of directors and the mayor of Burnaby, said in a statement. “It’s essential we do more to protect what lands we have left.”

Commercial real estate industry members and advocates have expressed concern about the region’s shrinking supply of industrial lands for more than a decade.

Industrial lands generate approximately $8 billion in tax revenue annually, including $250 million for municipal property taxes, $1.9 billion for the province, and $5.9 billion for the federal government, the report states.

These lands are integral to the flow of goods through the Port of Vancouver, the country’s busiest port, and serve as hubs for light and heavy manufacturing, warehousing, and emerging technology industries, says the report.

Despite their significance, Metro Vancouver’s industrial lands face mounting pressures, including limited supply, rising land costs, and regulatory challenges. A 2023 Greater Vancouver Board of Trade report cited in the study warns that the current supply of industrial lands could be entirely absorbed by 2047, with some projections estimating depletion as early as 2035.

“Companies may choose to relocate to other regions with more affordable and available industrial land, such as Calgary,” the report notes. “This can result in job losses and a decrease in local economic activity.”

The GVBOT report found that many industrial operators have, indeed, opted to acquire Calgary industrial assets over Vancouver, although the West Coast location is generally a more preferred market.

Metro Vancouver, the umbrella organization for the Lower Mainland’s local governments, is implementing a regional growth strategy aimed at alleviating development pressures on industrial lands by directing major projects to urban centres and transit corridors.

The report also recommends expanding industrial zoning and limiting non-industrial activities on industrial lands, such as tech parks and residential units, to prioritize employment-generating uses.

Photo: Courtesy of Avison Young