GTA In-Fill Development Sites: 2024 Update

“Location, location, location.”

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Although it has often been said that location is everything in real estate, the truth is that there are a lot more criteria considered when selecting the right industrial facility.

Industrial tenants often want to be well-located to attract top-tier talent and access a broader consumer base, however, the constraints of costs, zoning, and other logistical factors often turn the idealistic conversation into a more pragmatic one.

Where one cannot be in the middle of the action, being located alongside the fastest path leading directly to it is a choice alternative.

That said, aside from geography, building specifications largely drive the conversation. From ceiling heights that can accommodate racking and, thus, a reduced footprint, to an abundance of shipping doors and heavy power, businesses need to ensure that their operations can run uninterrupted while having the flexibility to scale or contract as needed.

The more recent conversations (led largely by larger corporations) around achieving Net Zero Carbon have spurred landlords to begin constructing or retrofitting facilities to offer some of these features, such as all-electric mechanical systems, EV charging stations, and solar rooftops. However, with such few options on the market, this additional constraint makes it more difficult to find something suitable.

But what if you could have it all?

What if it were possible to have a prime location and all of the modern, state-of-the-art building specs?

While this may be a bit of an embellishment, we have seen several infill redevelopment projects within the Greater Toronto Area striving to achieve this. These sites offer many of the aforementioned features – at a premium – that some businesses simply cannot compromise on.

So with that said, for this week’s newsletter, we will look at some of the prominent infill development projects currently taking place across the GTA. 

Notable GTA Infill Development Projects

1. 601 Milner Avenue, Scarborough – 351,951 SF Redevelopment

601 Milner Avenue. Source: Cushman & Wakefield.

Toronto East Logistics, located at 601 Milner Avenue, will bring approximately 351,951 SF of warehousing and logistics space that will be ready for occupancy in Q4 2024.

The state-of-the-art facility will have:

• 40’ clear height;
• 1,600A/600V heavy power.
• 43 trailer parking spots; and
• 61 TL shipping doors;
• 56’ by 40’ bays;

Strategically located with over 1,000 ft of frontage on Highway 401 at Markham Road, and with excellent access to the labour pool, public transit, and major transportation routes, this is a great opportunity for any business with logistics and warehousing needs. For more information, contact our team.

2. Steeles Connect Industrial Campus, Scarborough – 700,000 SF Development

Steeles Connect, Scarborough. Source: Colliers.

Olea Dev Real Estate Group and BMO are constructing over 700,000 SF of Class-A industrial space on the southeast corner of Victoria Park Avenue and Steeles Avenue East at the Scarborough-Markham border.

Situated on 30.8 acres, the two-building campus will be delivered in 2 phases, with building 1 targeting substantial completion in Q2 2025 and building 2 to follow a year later in Q2 2026. Specifications for building 2 have not yet been released, however, building 1 will see 451,669 SF constructed with 40’ clear, 53 truck-level and 2 drive-in doors, 3000 amps of heavy power, 58 trailer parking stalls, as well as being Net Zero Carbon certified. Colliers is marketing the asset.

3. 1 Steelcase Road, Markham – 787,594 SF Development

1 Steelcase Rd West, Markham. Source: QuadReal. 

QuadReal is redeveloping the site at 1 Steelcase Road West to construct 769,397 SF of industrial space over 3 buildings. The first facility will incorporate a portion of the existing property and will total 310,457 SF over two storeys and with a covered truck court. Building 2 will have a footprint of 194,399 SF, while Building 3 will be 264,541 SF in size. All buildings are working towards LEED certifications.

Located at the corner of Steelcase Road West and Woodbine Avenue, the business park is just a stone’s throw from Highways 404 and 407, offering excellent access to the GTA’s major transportation routes and the labour pool.

4. 450-454 Evans Road, Etobicoke – 317,220 SF Development

450-454 Evans Avenue. Source: Cushman & Wakefield.

Prologis is constructing two ‘mirror image’ 158,610 SF buildings on 12.5 acres with direct exposure to the Gardiner Expressway. This exceptional location makes 450-454 Evans Avenue a true, urban last-mile solution with its access to the TTC and GO Trains, amenities, the labour pool, and approximately 15-minute drive to Toronto’s downtown core.

Each property will have a 36’ clear height, 2000 amps of heavy power, 20 truck-level and 2 drive-in doors, and 6 knock-out panels. Delivering in Q4 2024, the modern facilities will target LEED Gold certification with its LED lighting, ESFR sprinklers, and living green roof. 

5. 60 Birmingham Street, Bldg 1, Etobicoke – 397,103 SF Redevelopment

60 Birmingham Street, Etobicoke. Source: QuadReal.

Just one building of a now-iconic infill redevelopment project of the former Campbell Soup factory remains available for lease. Building 1 at 60 Birmingham Road is 157,710 SF in size with a 36’ clear height, 17 truck-level and 2 drive-in doors, and 60’ staging bay. Similar to Evans, the site is extremely well-located with unparalleled access to Toronto’s downtown core and touts a ‘green design’ with solar rooftops, bike racks, EV charging stations and landscaped outdoor areas. Cushman & Wakefield is marketing the asset.

6. 541 Kipling Avenue, Etobicoke – 337,210 SF Redevelopment

Rendering of 541 Kipling Avenue. Source: OneProperties, AIMCo, Avison Young.

OneProperties and AIMCo have partnered to redevelop the site at 541 Kipling Avenue in Etobicoke, Ontario. The 337,210 SF state-of-the-art, last-mile distribution facility will have 78 truck-level and 2 drive-in doors with 40’ clear height. Avison Young is leading the project.

While it typically comes at a premium, some businesses simply need the best product in the best location. And, for the right user, investing in a high-performance asset can actually help lower costs in the long run.

Direct access to major transportation routes – such as Highways 401, 404, 400, 403, the QEW and Gardiner Expressway – offer the ability to reach more consumers at a higher efficiency, as well as tap into a broader labour pool.

Modern building specifications such as high clear heights allow for better throughput through the use of racking and help to offset some of the rent costs through larger cubic volume. Heavy power, high door ratios, and trailer parking all add to this narrative, depending on the use.

Finally, LEED and Net Zero Carbon certifications – while they may not dramatically impact your bottom line from the get-go – are a major consideration moving forward for most large corporations and relatively few properties (as a percentage of total inventory across the GTA) are able to meet the criteria.

Overall, the mantra of ‘location, location, location’ coupled with high-quality design should see more infill redevelopments occurring within the GTA in the coming years to leverage proximity to Canada’s largest city and its resulting economic base.

Until next week…

Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 30 years.

Goran Brelih is an Executive Vice President for Cushman & Wakefield ULC in the Greater Toronto Area.

Over the past 30 years, he has been involved in the lease or sale of approximately 25.7 million square feet of industrial space, valued in excess of $1.6 billion dollars while averaging between 40 and 50 transactions per year and achieving the highest level of sales, from the President’s Round Table to Top Ten in GTA and the National Top Ten.

Specialties:
Industrial Real Estate Sales and Leasing, Investment Sales, Design-Build and Land Development

About Cushman & Wakefield ULC.
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries.

In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com.

For more information on GTA Industrial Real Estate Market or to discuss how they can assist you with your real estate needs please contact Goran at 416-756-5456, email at goran.brelih@cushwake.com, or visit www.goranbrelih.com.

Connect with Me Here! – Goran Brelih’s Linkedin Profile: https://ca.linkedin.com/in/goranbrelih