Case Study – Industrial Facility, Mississauga, Ontario
Businesses typically go through cycles of profitability and growth; whereby the former allows for more routine day-to-day and the latter involves investment, change, and sometimes, growing pains.
When it comes to:
- Warehousers and distributors,
- Equipment repair, or
- Trucking and trailer companies…
Their operations can quickly outgrow their real estate. Sometimes, there simply isn’t enough room for everything – causing gridlock – and having extra breathing room nearby can make a huge difference. The biggest driving force here is the growing cost of transportation and moving things such as equipment, supplies, or product; which you don’t want to be forced to do across the city. As we will see in this case study, expanding your footprint strategically can help keep costs down and provide greater efficiencies as you expand.
Team Toronto was tasked by a User with finding at minimum 2 acres of trailer parking – with a warehouse as a bonus – as close to their head office as possible. As we mentioned, the benefits of doing so would unlock potential in the business and give the User room to grow their operations without costs ballooning from occupying properties located far from each other.
- Approximately 50,000 SF total
- M2 Zoning
- Approximately 4-acre site
- Excess Outside Storage
- Drive-In Doors
As we always do when running our process, we assessed our Client’s needs and understood what their objectives were. We then looked on and off the market for potential solutions that all had their top priority in common; in this case, excess or unused outside storage land. Utilizing this strategy, we were able to find ideally-located options to then analyze and pursue.
We took our short-list of prospects and produced a detailed report outlining the pros and cons of each, in addition to estimates of each location’s financial (and strategic cost savings) impact on the business. In going through this exercise, we were able to recommend a solution that we felt would be best for the Client in the long-term.
As a result of the aforementioned activity, we approached the Landlord of an ideal site just down the street. Although there were other interested Parties, we positioned our Client as the best suitor for the Landlord and negotiated a win-win outcome.
Bottom Line: In the end, we were able to secure a great rate for our Client, extremely close to their headquarters, and according to their requirements… all while providing the Landlord with a top-quality Tenant.
In conclusion, if you are looking to grow your business’ operations and find more space, whether it be a warehouse or outside storage, you need to leverage industry experts who can thoroughly examine the market for opportunities. Sometimes, the solution lies in your own backyard.
If you would like to talk further about your specific requirements, please give us a call and we would be happy to discuss your unique situation.
Daniel Smith is the Vice President and Principal of Lee & Associates Toronto, specializing in the acquisition, disposition, and leasing of industrial properties, as well as providing clients such as local and national corporations, landlords, and developers with a full range of real estate services.
ABOUT LEE & ASSOCIATES
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada.
Lee & Associates provides superior market intelligence in office, industrial, retail, investment, and appraisal to meet the specialized needs of our clients. For the latest news from Lee & Associates, visit leetoronto.com.
To get clarity and direction when looking for space or going through a lease renewal, or to discuss any other real estate needs, please contact Daniel at 416.628.8173, email at email@example.com, or visit www.leetoronto.com.