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2026-07-09 19:00

Surrey Council Advances Costco Warehouse Plan on 164th Street Amid Tree and Traffic Concerns

Key Takeaways

What happened
Surrey council has given first and second readings to a land-use application submitted by Costco Wholesale Canada for a new 165,000-square-foot warehouse located on 164th Street in South Surrey.
Location
Global markets / U.S. (indirect for Metro Vancouver)
Key points
  • The proposed Costco warehouse sits in an ecologically sensitive area near the Fergus Creek…
  • Surrey council gave first and second readings to the proposal
  • WHO Tiffany Bullinger fears the loss of trees due to construction.
Local impact
Surrey continues to lead the Metro Vancouver region in new industrial land projects, with the Campbell Heights Industrial Development serving as a key example of this trend. For Metro Vancouver buyers, sellers, developers and investors, watch financing cost, transaction pace, supply mix and policy expectations.
Who should watch
['Buyers in the Grandview Heights area should monitor the outcome of the Monday night public hearing, as final approval could lead to increased traffic and environmental changes.', "Investors in South Surrey industrial real estate may see…
Surrey Council Advances Costco Warehouse Plan on 164th Street Amid Tree and Traffic Concerns

What Happened

素里 council has given first and second readings to a land-use application submitted by Costco Wholesale Canada for a new 165,000-square-foot warehouse located on 164th Street in 南素里. The proposal, which includes a gas station and a 989-space parking lot, requires rezoning the site from residential to commercial use. A public hearing for the proposal is scheduled for Monday night to address community feedback before a final decision is made. The development plan involves cutting down 1,107 trees, with 572 trees planned to be kept or replaced on the site. Mayor Brenda Locke has publicly supported the project, citing the benefits of major employers investing in the region. The application is currently advancing through the land use agenda as part of the city's review process.

Why It Matters

The proposed Costco warehouse sits in an ecologically sensitive area near the Fergus Creek Watershed, raising significant environmental concerns among local residents. The development has sparked a strong community response, with 800 people signing a petition opposing the application due to fears of severe traffic congestion and harm to local wildlife. The project's scale necessitates substantial infrastructure changes, including the widening of 164th Street and 18th Avenue to handle increased traffic volumes. Additionally, the plan includes the construction of a new roundabout at 164th Street and 19th Avenue, as well as traffic signals at 164th Street and 20th Avenue, and at 168th Street and 20th Avenue. These infrastructure adjustments highlight the broader impact of large-scale commercial development on local road networks and residential safety.

Local Vancouver / Burnaby Context

素里 continues to lead the Metro Vancouver region in new industrial land projects, with the Campbell Heights Industrial Development serving as a key example of this trend. Campbell Heights is a master-planned industrial business park in 南素里, bounded roughly by 24th Avenue to the north, 32nd Avenue to the south, 184th Street to the west, and 196th Street to the east. The city has been actively planning to relieve pressure on the region's industrial land shortage by expanding this zone, which spans 768.9 hectares with more development anticipated. The proposed Costco site is located in south-east 素里 along the city's border with the Township of Langley, an area increasingly targeted for large-scale commercial and industrial use. While the CMHC Spring 2026 Housing Supply Report provides data on housing starts and supply, this specific development focuses on industrial and commercial space rather than residential housing. The tension between industrial expansion and environmental preservation is a recurring theme in 素里's growth, particularly in areas adjacent to sensitive ecosystems like the Fergus Creek Watershed.

Market Impact

The addition of 165,000 square feet of industrial and commercial space in 南素里 contributes to the region's growing logistics and retail infrastructure. The development's location near the Campbell Heights industrial park may further solidify the area as a hub for large-scale commercial operations. For local residents, the increased traffic and infrastructure changes could impact property values and quality of life, particularly in the Grandview Heights neighborhood. The project's emphasis on traffic mitigation, including widened roads and new signals, suggests a focus on maintaining accessibility despite the increased commercial activity. The development also includes a $517,000 estimated contribution to the green city program, which may help offset some environmental impacts.

Investor / Buyer Takeaway

  • Buyers in the Grandview Heights area should monitor the outcome of the Monday night public hearing, as final approval could lead to increased traffic and environmental changes.
  • Investors in 南素里 industrial real estate may see continued demand for logistics space, given the region's leadership in new industrial projects.
  • Residents concerned about environmental impacts should engage with the city during the public hearing process to voice opposition or support.
  • The project's infrastructure improvements, such as widened roads and new traffic signals, could enhance long-term accessibility for the area.
  • Monitor the city's green city program contributions to understand how environmental mitigation efforts are being funded and implemented.

Builder / Developer Perspective

The Costco proposal highlights the challenges of developing large-scale commercial projects in ecologically sensitive areas. The need to cut down 1,107 trees and replace 572 requires careful planning and compliance with environmental regulations. The project's infrastructure requirements, including widened roads and new traffic signals, add to the development costs and complexity. The $517,000 contribution to the green city program indicates a commitment to environmental mitigation, which may be a standard expectation for such projects in 素里. Developers must balance the economic benefits of large-scale commercial development with the need to preserve local ecosystems and address community concerns.

Risk Factors

  • Potential delays or modifications to the project due to community opposition and environmental concerns.
  • Increased traffic congestion in the area if infrastructure improvements are not adequately implemented.
  • Environmental risks associated with development near the Fergus Creek Watershed and ecologically sensitive areas.
  • Possible changes to local zoning or regulations that could impact future commercial development in the region.
  • Community backlash could influence future city decisions on large-scale commercial projects in 素里.

BurnabyHouse Insight

素里's push for industrial expansion is evident in the Costco proposal, which sits at the intersection of economic growth and environmental preservation. The city's leadership in new industrial projects, particularly in 南素里, underscores the region's role in meeting Metro Vancouver's logistics and retail demands. However, the strong community response, including the 800-signature petition, highlights the tension between development and quality of life. The infrastructure changes required for the project, such as widened roads and new traffic signals, reflect the city's attempt to manage growth while maintaining accessibility. For local residents, the outcome of the Monday night public hearing will be critical in determining the balance between economic benefits and environmental preservation.

Community

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Gary Gao

REALTOR®, Grand Central Realty

Covers Burnaby, Vancouver and Metro Vancouver real estate news, communities, developments, land use and market analysis.

Phone: 778-801-1314 · Full author profile

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