Tilbury LNG and the Delta Industrial Outlook — South Fraser Moves Up the Order
Delta has sat behind Richmond and Surrey for years. Energy, port and highway investment are converging on the Tilbury corridor, and the submarket now belongs in any serious Metro Vancouver industrial strategy.
July 21, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
What Tilbury LNG changes
FortisBC's Tilbury facility has run since 1971 as peak-shaving and storage. Phase 2, now under construction, adds liquefaction trains, storage tanks and marine loading to serve LNG-fuelled vessels as shipping moves off heavy fuel oil to meet IMO targets. Around the fence line that means demand for staging, maintenance, fabrication, construction-phase accommodation and ongoing support services.
Delta by the numbers
- About 25 million sq. ft. across Tilbury, Annacis Island and the Deltaport Way corridor, with newer product on Highway 17
- Net asking rents about $17.91 per sq. ft. in Q2 2026, versus Surrey $18.66, Richmond $20.26 and Vancouver $20.10
- Vacancy about 4.7%, availability near 6.3%, against a 4.3% regional average and sub-1% in 2022
- Only about 17 blocks over 100,000 sq. ft. available region-wide; small units have loosened most
- Stabilized cap rates 4.75% to 5.50%, versus 4.25% to 4.75% in tighter urban submarkets
The other infrastructure
Roberts Bank Terminal 2 would add container capacity whatever its approval timing. The George Massey replacement, now advancing as a bridge, will reconnect Delta and Richmond. The South Fraser Perimeter Road already moves freight from Deltaport to Highway 1, and buildings with direct SFPR access rent at a measurable premium.
Cranes are up at Tilbury. This is not a speculative narrative.
What to do with it
Owners of 1970s and 1980s product with clear heights under 24 feet, thin power and tight truck courts now compete against Campbell Heights and South Surrey; redevelopment may beat continued operation. Newer assets still renew near the Delta average even with regional net rents down 4% to 6% year over year — large functional tenants have few alternatives, small-bay tenants have plenty.
Occupiers: check ALR boundaries for expansion room, Fraser flood-plain designations for insurance and code cost, and BC Hydro capacity for heavy loads. Investors: the yield premium over Vancouver and Burnaby comes with marginally higher vacancy risk and infrastructure-driven upside.
