Case Study – Industrial Facility, Mississauga, Ontario
What happens when your business utilizes an extremely rare, niche, and underdeveloped type of property? Do you overpay to secure your space and limit your risk? Or do you build from the ground up and own it outright?
Some may say that in this situation, you would be better off developing on your own. However, this particular type of building is extremely expensive and time-consuming to construct, and land difficult to acquire with the proper zoning. To compound matters, existing inventory is aged and outdated, with most traditional or institutional investors shying away from developing more.
Well, recently, we were asked by a Client to do just this. And the sub-type of industrial product we were tasked with finding was a cross-dock facility.
As you will see in this case study… When you rely on a unique asset that can streamline your operations, as well as provide a value proposition to suppliers to win more contracts, it is difficult to go back to a traditional warehouse or distribution facility and lose that competitive edge.
Team Toronto Industrial was tasked with finding cross-dock space with additional tractor & trailer parking, and as close as possible to the Client’s existing location. The Client in question was an out-of-province transportation firm with local operations that had sold their existing building and put in place a sale-leaseback with an upcoming expiry.
Nearing the end of the lease, the decision was made, for various reasons, to relocate into a new and improved facility. Overall, this meant placing a tremendous amount of trust in our Team to not only find extremely scarce and unique product in a zero-vacancy market but to do so from across the country. Failing to do so quickly could have fragmented their business operations or forced them to overpay for a shorter-term solution.
● Brand-New Cross-Dock Facility
● Approximately 20,000 SF
● E2-19 Zoning
● Additional Tractor & Trailer Parking
We ran the requirement through our proprietary process; looking on- and off-the-market for viable options with the right timing. In situations such as these, finding a very ‘niche’ type of product can be as problematic as simply renewing and staying at your current location. By definition, these special features are rare, and therefore, Owners of such space have leverage in negotiating pricing and terms.
Due to our strong market presence and relationships within the industry, we were able to quickly identify a new development opportunity a ‘stone’s throw’ from our Client’s existing location. This property could accommodate the cross-dock, as well as all of the excess tractor and trailer parking requirements.
In the execution of the deal, we were able to negotiate a strong deal for the Tenant that both suited their timeline, as well as provided a risk-free ‘out’ in the unlikely event the completion of construction was delayed. Eventually, our Client took full possession and were ecstatic about their new home.
Bottom Line: We quickly found a solution tailored to the tough requirements of this transport company. Ultimately, when others say the space ‘doesn’t exist,’ we find it.
If you are a trucking, transportation, or logistics firm looking to renew or find a specific type of property to help you grow or optimize your operations, such as a cross-dock or distribution facility with excess outside storage, then give us a call to discuss your 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.