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One of 2019’s Larger Lease Deals Puts Hamilton on the Map

BRIDGESTONE HERO

In Q3 of 2019, through the joint efforts of the Colliers Toronto and Colliers Chicago teams, Bridgestone chose Colliers as its real estate representative. Led by Colliers Toronto’s Colin Alves and Graham Meader, the Colliers team secured a complex assignment involving consolidating two of Bridgestone’s facilities and accommodating a production increase in its third, as well as Prologis buying raw land and simultaneously negotiating a lease. The resulting 450,951-square-foot site on Osprey Drive in Hamilton represented one of 2019’s larger lease deals.

A Complex Assignment

Bridgestone’s main objective was to consolidate its two existing facilities: a 3PL in the GTA East and a lease distribution facility in Lehigh County, Pennsylvania. 

Bridgestone’s third location, located in Quebec, started to see a significant increase in production, adding a layer of complexity to the assignment as the Colliers team needed to identify an optimal location that would accommodate the production increase in Quebec, as well as the consolidation of the two distribution centres. The minimum requirement for a new facility was 300,000 square feet– securing such a space would be challenging given the tight Greater Toronto Area (GTA) real estate market. 

The Advantages of Emerging Markets

As a result of the lack of space within the core GTA, tenants were looking at secondary and tertiary markets and were consequently concerned with labour availability. The Colliers team recognized this concern and produced a labour study report, highlighting emerging markets such as Hamilton and their upcoming infrastructure improvements. The report emphasized how these improvements would increase the accessibility of surrounding areas, widening the labour pool and benefiting the community, tenants and owner occupiers.

This labour study’s findings prompted the team to expand their search and run a sophisticated and extensive Southwest Ontario Market Analysis. 

A Solution that Works for All Parties

As a result, Graham and Colin presented to Bridgestone a 60-acre, off-market land parcel in Hamilton. Unlike core GTA markets, the City had a short site plan approval process and therefore had the potential to accelerate construction timelines, complementing Bridgestone’s timing requirement. Thanks to the Colliers team’s strong relationship with the institutional and investor community, Graham and Colin engaged Prologis, knowing the firm would be interested in purchasing the land and expanding its development portfolio. 

Prologis acquired the land and moved forward with its 450,000-square-foot, build-to-suit development, enabling the Colliers Team to secure a new lease with both Prologis and Bridgestone. With Colliers negotiating a seven-year lease term on a brand-new building located within a secondary market, Bridgestone did not need to obtain capital budget approval from its headquarters in Japan, a step that would have delayed the project process and timeline. 

Considering Bridgestone’s lease expiry dates on its existing locations, the Colliers team also negotiated a short-term lease renewal at its Pennsylvania location (which happened to be part of Prologis’ portfolio) until its new Hamilton location was ready for occupancy. 

A Landmark Transaction

As a SIOR-recognized transaction (2019), the Bridgestone-Prologis deal put Hamilton on the map as an emerging market. Following the transaction, four major institutional Toronto-based developers have acquired land in the city. With the core GTA’s lack of available land and declining vacancy, tenants, developers and investors are now looking into secondary markets such as Hamilton to help balance the demand and supply ratio, positively impacting Hamilton’s economy and growing market. 



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For More Information, Please Contact:

Colin Alves

Executive Vice President, Sales Representative

Toronto West

I am a 20 year veteran and consistent “Top 10” advisor nationally, resulting from my client-centric consultative approach and designing iron-clad solutions to complicated industrial transactions. With a specialization in large format distribution and fulfillment centers, my team maintain a dominant market share and significant influence within the Greater Toronto Industrial Market.
With a long-term view of achieving optimal results, I exclusively represent prominent corporate occupiers across Canada and the United States. I am often called upon as an expert witness to assist with legal proceedings pertaining to real estate disputes. This has provided me with laser insight into the unique challenges facing the real estate industry. I strive to provide superior client service and possess an unyielding entrepreneurial spirit and a collaborative work ethic, together with an industry reputation for having the utmost integrity, form the groundwork of my accomplishments.
The Society of Industrial and Office Realtors (SIOR) has twice recognized me as the Industrial Broker of the Year in Central Canada, an award based on significant deal transactions, contribution to the industry and an outside commitment to community service.

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Graham Meader

Executive Vice President, Sales Representative

Toronto West

Graham has established himself as a quarterback within Colliers Industrial National Team and as a leader within the Toronto industrial real estate industry.  He has specialized in the logistics and ecommerce sector across Canada and the GTA over the past 25 years and has helped his clients through numerous market cycles. Together with his team, they are regularly relied upon by North American industrial occupiers and the investment community for their advice and real time market insights.

Graham has a passion for the logistics industry and is a visionary within the GTA Industrial market.    He has helped launched several top industrial parks across Durham Region, the GTA West, Caledon and Hamilton, as the GTA expands concentrically in search of labor, financial & operational efficiency.  Graham is a founding member of Colliers North America’s Logistics Supply Chain and Transportation Team.  He and his team look forward to learning more about your corporate needs and sharing their industrial insights.

 

Key Industrial Land Projects

425 acres on behalf of Rice Group and Choice Property REIT which will soon become the largest industrial park under development within Ontario

245 acres on behalf of Oxford Properties to support approximately 4M SF of future industrial development

100 + 150 acres on behalf of Anatolia Capital which will witness in excess of 5M SF of future industrial development

200 acres on behalf of HOOPP and is currently the largest spec industrial park in Canada with approximately 4M SF actively under developed and over half pre-leased.

115 acres on behalf of the Picov Family and Blackwood Partners which is has been the largest land transaction and business park development in Durham over the past 15 years

 

Key Industrial Big Box Leasing Projects

TJX / Winners / Home Sense – over 2 Million SF of fulfillment and distribution space across Canada

Gordon Food Service – 350,000 SF of freezer cooler warehouse facility and build to suit transaction + expansion of their Milton DC by another 200,000 SF

Best Buy – over 1 Million SF of fulfillment and distribution space concentrated in the GTA

Walmart – 2 Million SF of fulfillment and distribution warehouse space within Mississauga and Cornwall

Canada Post Corporation – procurement of their GTA Central East fulfillment centre and processing hub

 

Capital Market Projects

Summit REIT – acquisition of Volkswagen’s fulfillment, distribution facility in Ajax totaling 350,000 SF

GWL – sale of approximately 1 Million SF industrial portfolio in the GTA

KingSett – acquisition of a 220,000 SF existing building and 100,000 SF repositioning spec lease expansion followed by an investment sale to Bentall Kennedy

Hopewell – acquisition of a 30 acre site, spec development of 575,000 SF, future lease up and then subsequent capital market disposition once stabilized

SunLife – portfolio disposition of industrial, surplus land, office and retail portfolio within Burlington totaling over 600,000 SF

 

Industrial Listings

iPort Caledon, HOOPP – 4 Million SF industrial spec and build to suit leasing project

Prologis – 700,000 SF spec industrial development near Pearson Airport

Fengate – 250,000 SF spec pre-leasing program

Beedie – responsible for first 3 acquisitions within Ontario and future industrial strata projects across the GTA

CN Milton – 50 + 200 acres of future ground up industrial development directly across from the CN Intermodal Hub

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