Doubling of mortgage rates and soaring construction costs – up to 30 per cent higher in the past year – challenge the viability of developing industrial space for sale
The rising cost of industrial space in Metro Vancouver hits close to home for Josh Gaglardi, president of Orion Construction Corp. in Langley.
A design-build firm working with developers of strata industrial units, Gaglardi has worked to keep ahead of escalating prices so developers can maintain margins while keeping prices attractive.
But to do so, he’s also purchased materials in advance, keeping ahead of cost increases and supply chain disruptions so materials are on hand when needed. But that has entailed buying extra space for his business, a good investment but an increasingly expensive one.
Orion recently committed to a second unit in a project it was building as its needs grew and the price…