Opinion: Metro Vancouver's prosperity depends on industrial lands, not just housing | Daily Hive

Opinion: Why Metro Vancouver's long-term economic prosperity depends on industrial lands — not just housing

January 2026 construction progress on a brand new 187,000 sq. ft. purpose-built warehouse facility for a major freight/logistics provider at 2450 United Blvd., located next to the north end of the Port Mann Bridge in Coquitlam. (Beedie Group)

Written for Daily Hive Urbanized by Eric Aderneck, who is an urban planner with focus on industrial lands and employment uses in communities throughout British Columbia.

Industrial areas do not look flashy and usually do not get much attention, but they are really important to the economy and to jobs, both locally and across the country. They are where many businesses operate, where other industries get support, and where the supply chains that keep our communities running are based.

Planning ahead for these areas helps make sure our economy stays strong and competitive.

The term “industrial” represents a spectrum of uses and forms, which comprises everything from large transportation, distribution, and manufacturing facilities to small local-serving producers and suppliers, along with traditional industries associated with natural resources and emerging sectors like advanced technology, media, bio-tech, and e-commerce.

Although these businesses are not always associated with the “clean” jobs profiled in economic development plans, many feature high-skilled and well-paid roles accessible to a wide range of the labour force.

Industrial lands accommodate various business-to-business functions, such as wholesales, suppliers, food processing, and construction contractors, where proximity to customers matters, as well as software, clean- tech, research and design services sold internationally. They also play a crucial role in the functioning of the broader economy, including facilitating transportation.

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With Canada’s drive to diversify trade away from reliance on the traditional north-south patterns with the United States, we can expect to see increasing import and export volumes through gateway ports, connecting the Canadian economy with Asia to the west and Europe to the east.

Economic output of industrial lands, supporting many jobs

While the economic composition of the major centres in Canada vary, the Metro Vancouver region is notable, with a growing population, limited land base, and the country’s largest port.

The Port of Vancouver handles a wide range of goods and rising volumes, from the export of 32 million tonnes of grain and 12 million tonnes of fertilizers, to the import of five million tonnes of household goods and one million tonnes of machinery, serving the rest of the country. This includes some two million containers that flow through the port terminals each year and are handled at off-dock industrial facilities situated across the region.

A 2024 study commissioned by Metro Vancouver Regional District quantified the economic impact of industrial lands across jobs, wages, GDP, output, and taxes — and the results underscore their outsized role in the region’s economy.

Industrial lands of Metro Vancouver, Metro 2050. (Metro Vancouver Regional District)

Although industrial lands make up just four per cent of this region’s land base, they support 22 per cent of all regional jobs, and industrial activity overall accounts for 31 per cent of employment.

These jobs pay, on average, 14 per cent more than non-industrial positions.

When direct, indirect, and induced impacts are considered, activity tied to industrial lands supports 468,600 jobs in the regional economy, 513,700 across British Columbia, and 584,100 nationwide.

In GDP terms, industrial lands generate 30 per cent of Metro Vancouver’s total — about $43 billion — rising to $48 billion for B.C. and $57 billion for Canada. They also contribute roughly $8 billion in annual tax revenue across all levels of government, including $250 million municipally, $1.9 billion provincially, and $5.9 billion federally.

While the industrial real estate market has softened in recent years, the long-term outlook remains strong. A limited supply of industrial lands, combined with continued business growth and rising trade, is expected to sustain demand and reinforce the sector’s critical role in the regional, provincial, and national economies.

Consequences of an industrial land shortage in Metro Vancouver

An insufficient supply of industrial lands in Metro Vancouver can have several significant consequences, challenging the expansion of businesses and the growth of the economy.

As the cost of industrial land rises, it becomes more expensive for businesses to operate and expand their operations, and firms looking to access the Western Canada market may instead choose to start operations outside of Metro Vancouver.

The shortage of space also leads to low industrial vacancy rates, which can make it difficult for new businesses to find suitable locations. In some cases, companies may choose to relocate to other regions with more affordable and available industrial land, either elsewhere outside Metro Vancouver or to other provinces such as Alberta, resulting in job losses and a decrease in local economic activity.

As businesses find it increasingly difficult to acquire suitable land, there can also be increased strain on transportation and logistics infrastructure. This leads to higher costs and inefficiencies due to congestion and longer travel times to key transportation nodes such as the Port of Vancouver and Vancouver International Airport.

Industrial lands are also crucial for supporting a diverse economy that is less sensitive and more resilient to general business cycles. By spreading risk across multiple businesses and industries, the economy becomes stronger and better able to weather challenges. These long-term benefits are put at risk when industrial lands are lost through conversion to residential or commercial uses.

We cannot make more land, but we can protect the industrial lands we have, and make the best use of the industrial base by increasing its functional capacity through industrial redevelopment. Government policy efforts are focused on protecting existing industrial lands for industrial uses, densifying buildings and intensifying activities, and bringing underutilized lands to market.

B.C. government’s new focus on reinforcing industrial lands

Recognizing the strategic importance of industrial lands, the Government of British Columbia recently established a new Industrial Land Office. As stated in the provincial government’s new Look West economic strategy: “The action plan will ensure communities and workers across BC benefit from a thriving and diversified industrial land base that drives economic growth, supply chain resilience, environmental sustainability, and new export opportunities. The action plan will seek to optimize industrial land use, improve access to development opportunities, and increase industrial land supply to drive growth in targeted sectors.”

The Industrial Land Action Plan reflects the role of industrial lands in maximizing natural resource value, creating jobs, strengthening supply chains, generating public revenue, attracting new investment, and diversifying B.C.’s exports.

The provincial government is developing a comprehensive inventory of industrial land to provide a clearer picture of B.C.’s land base and inform a province-wide, land-use needs assessment.

At the regional scale, Metro Vancouver continues to implement the Regional Industrial Lands Strategy, including updating the Regional Industrial Lands Inventory. The Inventory, updated every five years, provides detailed information about the region’s industrial land supply, trends over time, and allows for analysis on particular areas of interest (geographic, industrial sectors, type of land uses, etc.).

Municipal governments are the key player for industrial uses

Municipal governments in the Metro Vancouver region play a critical role in implementing on-the-ground outcomes.

The City of Vancouver, for instance, has been exploring updated regulations that support local business and job growth in the South Vancouver Industrial Area. Through defining the economic role and value of the area, the City can help to better support current and future industrial businesses in part through industrial intensification and densification.

The established area is the largest industrial area in Vancouver, and supports a broad spectrum of businesses — from logistics and manufacturing to the construction industry, and hosts a mix of city-serving industrial users that require both large and small format spaces.

Notably the area in South Vancouver is strategically located near road, airport, public transit, water, and rail connections, with road access via Marine Drive on the north side and the Fraser River on the south. Retaining these types of industrial lands and uses within the community is essential to the city’s long-term economic resilience and sustainability.

In Maple Ridge, the municipal government is preparing a new area plan for the North 256 Street lands to bring new industrial lands online and facilitate light industrial development while respecting the environmental features and recreational activities in the area.

The City of Maple Ridge’s planning program integrates engineering and environmental technical analysis, community engagement, policy planning, and design guidelines to unlock the full potential of the large block of underutilized land to accommodate a variety of types and sizes of industrial businesses, providing additional employment opportunities within the community.

To support the intended industrial development, the road network will be enhanced, including the Abernethy Way extension from the west, and sanitary, water, and storm infrastructure expanded.

Coordinating land use planning, economic development, transportation systems, and infrastructure servicing, municipal plans aim to strategically attract and grow industrial investments, businesses, jobs, and tax base, to deliver broad benefits to the community, region, and the province.

Planning for long-term prosperity is more than just about housing

Lasting economic prosperity requires coordinated and concerted efforts at all levels.

The role of industrial lands is now particularly critical and present, given the renewed interest in economic matters, employment stability, natural resources, and diversified trade.

While the economy and workforce will always be changing, a solid industrial land base is ever required.

Protecting strategically located industrial lands, intensifying their use where appropriate, and bringing underutilized sites to market are essential steps toward regional and national long-term economic success.

The diverse range of business and employment activities helps protect the economy from sector-specific disruptions and market shocks, whether from changes in global trade policies, the emergence of new technologies, the impacts of climate change, or the globalization and offshoring of manufacturing.

While the need for more housing consumes much attention, a significant proportion of the lands in most cities are already designated and zoned for residential uses, providing ready opportunities to densify through multi- unit infill projects. Industrial lands, in contrast, are limited in supply and often constrained by their ground-oriented requirements. Due to the lower cost of industrial lands, they are often seen as attractive to residential developers.

Protecting and densifying industrial lands are a necessary foundation for inclusive growth, a strong economy, and resilient communities.

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