Greater Vancouver Submarket
Kelowna.
Airport-corridor industrial in the Central Okanagan.
Overview
Kelowna industrial market overview
Kelowna and the Central Okanagan are among the faster growing regions in BC, with an industrial base concentrated along the Highway 97 corridor running from central Kelowna through the airport lands into Winfield and Lake Country. The market is smaller and less liquid than Metro Vancouver, but the pricing gap is significant: new concrete industrial strata in Winfield is currently selling from $250 per square foot, a basis that is difficult to replicate anywhere in the Lower Mainland. That gap has Vancouver-area owner-occupiers, expanding businesses, and investors paying attention to the corridor.
Market Snapshot
Key metrics for Kelowna.
- Lease Range
- From $10.00 PSF net for new strata (introductory, 5-year terms)
- Vacancy
- Smaller, less liquid market than Metro Vancouver; availability arrives in waves as new projects deliver
- Clear Heights
- New strata delivering 28 ft clear; older stock typically lower
- Asset Mix
- Small-bay strata, owner-user buildings, trades and service industrial
- Land Availability
- More available than Metro Vancouver, concentrated along the Highway 97 corridor
Defining Characteristics
What makes Kelowna distinct.
- Highway 97 corridor connecting central Kelowna, the airport lands, Winfield, and Lake Country
- Minutes from Kelowna International Airport (YLW) and UBC Okanagan
- New small-bay industrial strata supply, including IntraUrban McCarthy in Winfield
- Sale pricing well below Metro Vancouver replacement cost
- Industrial zoning split across Kelowna, Lake Country, and West Kelowna municipalities
- Growing owner-occupier and investor demand from the Lower Mainland
Typical Tenant Base
Who occupies space here.
- Trades and contractors
- Light manufacturing and assembly
- Distribution and e-commerce fulfilment
- Service businesses needing warehouse plus office
- Recreational vehicle and boat storage
Notable Industrial Areas
Where the industrial inventory clusters.
The key industrial nodes within Kelowna, where availability, leasing activity, and tenant turnover concentrate. Click any pin for details.
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- 01
Industrial Node
IntraUrban McCarthy, 9640 McCarthy Road, Winfield
- 02
Industrial Node
Kelowna International Airport (YLW) lands
- 03
Industrial Node
UBC Okanagan / north Kelowna corridor
- 04
Industrial Node
Rutland industrial pockets
- 05
Industrial Node
West Kelowna / Westbank industrial
Why I Work Kelowna
Working in Kelowna industrial
I am an industrial broker with NAI Commercial, based in Vancouver and active in the Central Okanagan, where I co-list IntraUrban McCarthy, a new 13-unit industrial strata project in Winfield, with my colleague Sam Nakhleh. Because I work both markets, I can put Metro Vancouver occupancy costs next to real Kelowna alternatives and run the transaction at either end - a lease renewal in Vancouver against ownership in Winfield, or an Okanagan acquisition for a Lower Mainland business that no longer needs to be near the port.
Industrial zoning in the Central Okanagan is split across several municipalities - the City of Kelowna, the District of Lake Country, and West Kelowna - each with its own zones and permitted uses, so confirming that an intended use is permitted is an early step on any requirement. The market is less liquid than Metro Vancouver: selection at any given moment is thinner, comparables are fewer, and early access to new projects matters more. Buyers of new strata should review the strata plan, mezzanine treatment, and parking allocation carefully.
Frequently Asked Questions
Kelowna industrial, answered.
Where is industrial space concentrated in Kelowna?
The main industrial corridor runs along Highway 97 from central Kelowna through the airport lands into Winfield and Lake Country, with additional pockets in Rutland and West Kelowna. New supply is concentrating in the north corridor around the airport, where land is more available than in central Kelowna and access to Highway 97, YLW, and UBC Okanagan is strongest.
Is Kelowna cheaper than Metro Vancouver for industrial space?
Substantially, on current evidence. New concrete industrial strata in Winfield is selling from $250 per square foot, with introductory lease rates of $10.00 PSF net on new product - both well below what comparable new small-bay industrial costs in Metro Vancouver. For owner-occupiers, the gap can mean owning in Kelowna for a comparable monthly cost to renting in Vancouver, before accounting for labour, logistics, and market-fit differences that need to be modelled case by case.
What should I check before buying industrial strata in Kelowna?
Confirm the zoning and permitted uses with the specific municipality, since Kelowna, Lake Country, and West Kelowna each run their own industrial zones. Review the strata plan, how mezzanine area is counted and priced, parking allocation, and any restrictions on outside storage or vehicle repair uses. On new projects, look at the specification detail - clear height, floor loading, power, and sprinkler class - against your operational needs, not just the price per foot.
Do you cover Kelowna from Vancouver?
Yes. My home market is Greater Vancouver, and I am active in Kelowna through the IntraUrban McCarthy co-listing in Winfield alongside my NAI Commercial colleague Sam Nakhleh. For businesses comparing the two regions, working both markets is the point: I can pull comparables at either end and run the analysis on a move, an expansion, or a purchase in one market funded by a disposition in the other.
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