Build-to-Suit in Metro Vancouver — How the Deals Work and When They Make Sense
When no standing building fits, a build-to-suit is the alternative. A developer builds to your spec, you commit to a long lease or a purchase, and you get the facility the market would never otherwise produce for you.
September 24, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
Two structures
Lease-based BTS is the Metro Vancouver norm: the developer or institutional landlord builds, keeps ownership, and the occupier signs for 10 to 20 years at a rent that returns the development cost. Purchase-based BTS delivers the building at a pre-agreed price, with the occupier arranging acquisition financing. In both, the occupier sets dimensions, clear height, column spacing, loading, power and specialized systems.
When it makes sense
- Specs an existing shell cannot take: heavy power, reinforced slabs, cross-dock door counts, special ventilation.
- Size above the standing inventory. Most stock sits at 10,000 to 50,000 sq. ft.; at 150,000 sq. ft. and up, options thin out fast.
- A stable 10- to 20-year operating horizon that justifies the lead time.
- A tight market. Vacancy averaged 4.3% in Q2 2026, yet only about 17 blocks over 100,000 sq. ft. were available region-wide.
The rent math
BTS rent is built from land, construction, soft costs and developer return, not comparables. Construction runs $250 to $350 per sq. ft. for quality industrial, and land $2.5 to $4.5 million per acre in established submarkets. That puts Richmond, Burnaby and Vancouver BTS rents well above the Q2 2026 averages of $19.67 to $20.26 per sq. ft. net, and Campbell Heights and Langley above their $18.66 and $19.20. Nail down base building scope versus tenant work, who pays for upgrades, delay provisions tied to substantial completion, and renewal options with set rent mechanics. Landlords will want 12 to 20 years of term to amortize the cost.
A build-to-suit is a 20- to 36-month commitment before the first pallet moves. Plan backward from your lease expiry.
Where and how long
Campbell Heights and South Surrey are the main ground-up locations, with serviced lots and municipal support. Langley and Aldergrove follow at lower land cost. Richmond and Delta see periodic redevelopment sites, with Tilbury able to take larger footprints. Vancouver and Burnaby BTS means redeveloping an underused site, with the cost and complexity that implies.
Budget 2 to 4 months for site work, 2 to 4 for LOI and lease, 6 to 12 for design and permitting, and 10 to 16 for construction. Pre-zoned, serviced sites cut approval risk.
