Denciti Development Corp. and Kadestone Capital Corp. (KDSX-X) have partnered to acquire an industrial development property in the community of Squamish, north of Vancouver. The partners are planning to move ahead with construction on the site as soon as approvals are in place.

“Squamish is an excellent place to start or relocate a business and we look forward to providing high-calibre space where local entrepreneurs can thrive,” said Denciti CEO Garry Fawley in the announcement.

The 8.5-acre site is one of the largest development tracts available in the Sea-to-Sky Corridor, which like Vancouver itself is experiencing an increasingly low availability rate for industrial space due to high demand and land constraints.

“We’ve really got the perfect storm going here for industrial demand,” said Darren McCartney of RE/Max Sea to Sky Real Estate in Squamish, in the announcement.

“I’m excited to see Denciti stepping up. With their expertise, this site will provide a steady supply of high-quality light industrial space that’s long overdue.”

Financial details of the transaction were not disclosed.

Denciti builds industrial strata

The site at 38933 Queens Way will be developed with industrial space designed to serve the needs of manufacturing, technology, cleantech, greentech and food processing companies.

Although Fawley told RENX in an email exchange it is too early to offer details of the development, the firm is well-known as an industrial strata developer in the region.

Denciti’s most recent industrial purchase was 19748 86 Ave. in the Township of Langley in Metro Vancouver, a six-acre parcel home to its Langley Gateway strata industrial development. That 90,000-square-foot project is the first of its kind in Langley in over a decade.

Denciti is preparing plans for the Squamish site and expects to file a formal development application in the near future. It also plans to announce additional acquisitions in the coming months.

The Squamish region

As space has become increasingly difficult to come by in Metro Vancouver, firms have been looking outside the city boundaries for options. In Squamish, about a 45-minute drive north of Vancouver, demand for industrial space has surged over the past five years as the price of land has increased across the Lower Mainland.

Demand for industrial space is driving availability rates, either to lease or own space, to near-zero levels. Leasing rates have been increasing steadily for the past five years.

The Squamish region provides raw materials for manufacturers and recreational opportunities for residents and tourists. For residents, it also offers a lower cost of living and desirable location. The municipality expects to double its population by 2035.

Denciti Development Corp. is a Vancouver-based real estate company creating urban industrial, commercial and residential development. It has delivered over $2 billion of real estate across Canada.

Kadestone Capital Corp. is a vertically integrated property company founded in 2019. The Vancouver-based firm invests in development, acquisition and management of residential and commercial income-producing properties.