Skip to main content Skip to footer

Market Research and Effective Negotiations Add up to New Distribution Stox Facility

Distribution Stox is a Canadian company specializing in the distribution of tires and accessories for cars and pickup trucks. Operating in five separate facilities across Québec and Ontario, the company looked to consolidate all its locations.

A large requirement with minimal options

Patrick Soucy and his team, including Maxime Paquet, won the mandate to find Stox a facility that would fit its specific requirements and operation paraments. Together, the Colliers and Stox teams determined that Stox’s new home would need to be approximately 250,000 square feet, with the potential to expand to approximately 350,000 square feet.

The team carried out a thorough due diligence and concluded that the best option for Stox would be a land site allowing the construction of a build-to-suit facility. This in itself would be quite a challenging endeavor as there are practically no sites available for construction in Québec City for such a large building.

Nevertheless, following extensive market research, Patrick’s team was able to identify three potential land sites that met the clients’ needs, one belonging to Groupe Dallaire, one of the largest property developers in Québec.

Lengthy, complex negotiations with two separate owners

Negotiations with Groupe Dallaire for a build-to-suit facility lasted for several months without coming to fruition. In the middle of negotiations, a sale/lease listing came on the market, for a warehouse belonging to a major Canadian fashion retailer. Even though it measured 350,000 square feet – 100,000 square feet more than required – the Colliers team and the client concluded that a long-term lease for a 250,000-square-foot space, with the lessee having the option to expand into the remaining area, would be an interesting option to consider.

The negotiations with the retailer for a long-term lease lasted approximately five months. The client was almost ready to sign the offer when, at the last minute, the lessor decided to increase the rent – for such a large space, the difference was quite significant.

The Colliers team decided not to proceed with this space and called back Groupe Dallaire to renegotiate their initial offer. Finally, the team managed to negotiate an agreement that enabled the client to proceed with a built-to-suit on a land site strategically located east of Henri-IV Highway in the Espace d'innovation Chauveau, a new industrial park in Québec City.

Furthermore, not only did Groupe Dallaire significantly reduce their rates, they also offered the client a few advantages the Colliers team had requested, one of which, and quite important, was the option to build the centre in phases: The first phase (150,000 square feet) is currently under construction and will be delivered on May 1, 2021. The second phase (100,000 square feet) is expected to be delivered in 2022.

New facility and increased business efficiency add up to record transaction

The client was extremely satisfied with the transaction, as not only will this new property improve their operational efficiency, but for the first time, they will be able to enjoy an entirely new building. (This type of company usually runs its operations in C-type buildings.)

This deal represented the largest industrial lease transaction for a private company in Québec City . What’s more, with a clear height of 27’ and an ESFR sprinkler system, this is one of the first buildings in Québec City offering such features.


For More Information, Please Contact:

Patrick Soucy

Senior Vice President | Chartered Real Estate Broker

Quebec City

Patrick Soucy s’est joint à l’équipe de Montréal en mai 2007 et fait partie de la toute nouvelle génération chez Colliers.

Ayant ouvert le bureau de Québec en avril 2012, Patrick joue un rôle primordial au développement des affaires de la vieille capitale.

 

Patrick est associé à Pierre Charest et Pierre Houle, vice-président et premier vice-président, possédant plus de 25 ans d’expérience chacun. Ensemble, ils défendent les intérêts des utilisateurs d'espaces dans le but de maximiser leur rendement immobilier.

 

View Expert

Maxime Paquet

Senior Associate | Commercial Real Estate Broker

Quebec City

Natif de la région de Québec, Maxime Paquet s’est joint à Colliers en 2017. Il s’intègre à titre d’associé aux courtiers d’expérience Patrick Soucy, Pierre Houle et Pierre Charest qui offrent un service en représentation d’utilisateurs d'espaces dans la région de Québec. Jeune professionnel appuyé par sa nouvelle équipe qui possède plus de 25 ans d'expérience dans le domaine, Maxime assiste les utilisateurs à cerner la meilleure solution à leurs besoins immobiliers.

 

A native of the Québec region, Maxime Paquet joined Colliers in 2017. As an Associate, he is part of the experienced broker team of Patrick Soucy, Pierre Houle and Pierre Charest who offer a space user representation service within the region of Québec. A young professional supported by his team, Maxime assists space users in identifying the best solution to their real estate needs. 

View Expert