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 asPrologis buying raw land and simultaneously negotiating a lease. The resulting 450,951-square-foot site on Osprey Drivein 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 LehighCounty, 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 challenginggiven thetightGreater 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 produceda 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,complementingBridgestone’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, enablingthe Colliers Team to secure a new lease with both Prologis and Bridgestone. WithColliers negotiating a seven-year lease term on a brand-new buildinglocated within a secondary marketBridgestone 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 ofPrologisportfolio) 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 landin the cityWith 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 is an active member of Colliers Logistics and Transportation Solutions Team.  He has been with Colliers International for 20 years specializing in industrial leasing within the Toronto West market.  Graham has a passion for industrial real estate and has established himself as a perennial top-performer nationally and as a reliable partner within his office, amongst his US colleagues and his long-term clients.  Graham prides himself for his uncommon market knowledge.  He attributes his success to understanding his client's requirements and being able to navigate the real estate process effectively so his client's objectives are realized.   Whether the project calls for project management services; abstracting / risk mitigation; financial analysis to lease restructure services; he surrounds himself with the best industry experts to ensure his clients obtain their goals.

Paramount to each of Graham's engagements is accountability and client satisfaction.  Graham has been awarded the Top Net Promoter Score within Colliers nationally and has won several other prestigious awards within the industry for his tenant representation work on complex leasing assignments.  In 2014, Graham represented Walmart for a highly complicated 2.5 million SF lease restructure assignment, making it the largest lease restructure assignment in Canadian history.  Graham has been working with national retailers to expand their supply-chain and assist in implementing e-commerce solutions for his clients. 

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