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<\/picture>Amazon.com\u2019s Vibhore Arora shows the new fulfillment centre under construction in Leduc County, Alberta this past June.<\/span> Photo by Greg Southam\/Postmedia<\/span><\/figcaption><\/figure>\n\u201cThe sheer size and scale of these projects is huge,\u201d said Kyle Hanna, an executive vice president at CBRE in Toronto. \u201cMost are talking one million square feet or more.\u201d<\/p>\n
While the major activity is centred on the GTA<\/a>, Vancouver is hot on its heels<\/a> with Calgary and Montreal coming on strong as well, Hanna said.<\/p>\nThe demand for fulfillment space is so strong, and real estate so tight, that some developers are looking to build up as well as out. Oxford Properties hasjust announced Canada\u2019s first multi-level distribution centre<\/a> concept at its Riverbend Business Park, located in Burnaby, B.C.<\/p>\n\nIt\u2019s a square box that requires less capital and can be reused which can translate into billions of dollars<\/p>\n
Kyle Hanna, an executive vice president at CBRE<\/p>\n<\/blockquote>\n
And the warehousing boom goes beyond megaprojects. While massive regional fulfillment centres that act as hubs for a larger geographical area get a lot of the attention, Hanna said now he is seeing the trend shift to smaller, more urban locations to satisfy last-mile needs.<\/p>\n
The fulfillment landscape is becoming so large and complex that some facilities are being designed to handle specific functions, such as only returns, or food and beverage inventory for multi-function retailers such as Walmart.<\/p>\n
As for investors, one major appeal of the warehouse sector is the considerably lower development costs versus retail<\/a> and office real estate<\/a>. \u201cIt\u2019s a square box that requires less capital and can be reused which can translate into billions of dollars,\u201d Hanna said.<\/p>\nThat could explain why the development project numbers keep growing.<\/p>\n
\u201cIt used to be that the number of transactions for large-size industrial deals was one every few years,\u201d he said. \u201cNow it\u2019s not uncommon to see up to five builds in a year. We can expect even more very compelling announcements in the months to come.\u201d<\/p>\n
<\/picture>\u201cThe sheer size and scale of these projects is huge,\u201d said Kyle Hanna, an executive vice president at CBRE in Toronto. \u201cMost are talking one million square feet or more.\u201d<\/p>\n
While the major activity is centred on the GTA<\/a>, Vancouver is hot on its heels<\/a> with Calgary and Montreal coming on strong as well, Hanna said.<\/p>\n The demand for fulfillment space is so strong, and real estate so tight, that some developers are looking to build up as well as out. Oxford Properties hasjust announced Canada\u2019s first multi-level distribution centre<\/a> concept at its Riverbend Business Park, located in Burnaby, B.C.<\/p>\n It\u2019s a square box that requires less capital and can be reused which can translate into billions of dollars<\/p>\n Kyle Hanna, an executive vice president at CBRE<\/p>\n<\/blockquote>\n And the warehousing boom goes beyond megaprojects. While massive regional fulfillment centres that act as hubs for a larger geographical area get a lot of the attention, Hanna said now he is seeing the trend shift to smaller, more urban locations to satisfy last-mile needs.<\/p>\n The fulfillment landscape is becoming so large and complex that some facilities are being designed to handle specific functions, such as only returns, or food and beverage inventory for multi-function retailers such as Walmart.<\/p>\n As for investors, one major appeal of the warehouse sector is the considerably lower development costs versus retail<\/a> and office real estate<\/a>. \u201cIt\u2019s a square box that requires less capital and can be reused which can translate into billions of dollars,\u201d Hanna said.<\/p>\n That could explain why the development project numbers keep growing.<\/p>\n \u201cIt used to be that the number of transactions for large-size industrial deals was one every few years,\u201d he said. \u201cNow it\u2019s not uncommon to see up to five builds in a year. We can expect even more very compelling announcements in the months to come.\u201d<\/p>\n\n