Campbell Heights Is Nearly Built Out — Port Kells Is Taking the Overflow

Campbell Heights hits its ceiling

Roughly 4.2 million sq. ft. was delivered in Campbell Heights between 2018 and 2025, with Amazon, Loblaws and cold-storage operators anchoring it. As of mid-2026 fewer than a dozen development-ready parcels remain, most already in pre-leasing or under construction. Surrey's phased servicing has reached its current boundary; the 32 Avenue widening will open land to the south eventually, but not inside most lease horizons.

Absorption has slowed partly because there is less to absorb. Surrey vacancy averaged about 3.8% in Q2 2026 with 5.0% availability, under the regional 4.3%. For a 50,000 sq. ft. plus user, the problem is timing: the right building is often not there when the lease expires.

Why Port Kells works

Port Kells straddles the Fraser Highway corridor with direct Highway 1 access via 176 Street. Stock is mixed, 1980s and 1990s buildings alongside newer infill, but 24 to 28 ft. clears are common and many sites carry yard and trailer parking. Net asking rates for functional warehouse sit at or below the Surrey average of about $18.66 per sq. ft., a discount to Campbell Heights Class A.

Food and beverage distributors, building materials suppliers and regional logistics firms have driven much of Surrey's positive absorption over the past 18 months, often after starting their search in Campbell Heights.

On a 75,000 sq. ft. requirement, every $1.00 per sq. ft. is $75,000 a year.

The trade-offs

• Campbell Heights: 32 ft. plus clear, ESFR, modern loading, fastest route to the Pacific Highway crossing
• Port Kells: wider quality spread, more due diligence on condition, better Highway 1 access for Lower Mainland and Fraser Valley distribution
• Port Kells' fragmented ownership makes adjacent expansion easier; institutional Campbell Heights holds are less flexible
• Both draw on Surrey labour; Port Kells also reaches Langley and Maple Ridge trades

For investors and tenants

Campbell Heights assets trade at 4.75% to 5.25% caps. Port Kells trades at 5.50% to 6.25% with value-add through lease-up and renovation, and legacy zoning on some parcels permits broader uses. Expect the Port Kells discount to narrow as large-bay options tighten, even with regional rents down 4% to 6% year over year and about 3.0 million sq. ft. under construction.

Tenants: run both nodes in parallel. Decide honestly what share of freight crosses the border, what clear height you need versus want, and where your workforce lives. Port Kells answers those questions for more operators than expect it to.