From Farmland in 1913 to the Second Largest Transit Hub in Toronto, Second Only to Union Station
For many Torontonians, the Black Creek area doesn’t bring to mind a positive, up-and-coming, ideal location within the City.
It is in need of updating and modernization, as is its reputation. However, when taking a closer look, we can see that this is a hidden gem with tremendous upside and future promise.
The biggest advantage: a brand new, super transit hub – connecting public transport, the Eglinton LRT, intermodal, and proximal to the 400 and 401… while also being centrally located within the 416 area code.
Whether you are looking to:
- reduce transportation costs (a top priority of 3PL and ‘last-mile’ firms),
- have access to a large and competitive labor pool (an issue that is beginning to surface in certain parts of the GTA),
- lock down a location at affordable rates (during this unprecedented upswing in industrial rents), or
- find space in general (nevermind space that is undervalued – 2 serious issues in Toronto)…
Then you may want to read this article from start to finish because we have a great opportunity that may satisfy your needs.
So to start… whenever we look at a neighborhood or pocket, it’s always interesting to examine its history and roots, as well as where it’s heading.
Back in 1913, George Eastman purchased 25 acres of farmland at Eglinton Avenue and Weston Road, for a whopping $5,000 per acre (Note: land value in 2019 is arguably at $2,000,000 per acre or more).
Soon after the deed was signed, construction began on the original seven buildings at Kodak Heights, housing their photo processing and manufacturing operations, as well as employing about 900 people.
Kodak Heights 1914, South Elevation, Building 5
To meet its plant’s massive energy needs, Canadian Kodak built and maintained its own Power House (Building 1) at Kodak Heights, where upwards of 50 tonnes of coal were burned each day.
Fast forward almost a century, through massive shifts and innovations (and the rise and fall of new Tech giants), and Kodak closed its operations plant in 2005.
The site was then acquired by Metrolinx in 2013 to construct the Eglinton Crosstown Line.
Today, much of the Mount Dennis Crosstown station will be located on the former Kodak lands on Eglinton Avenue just east of Weston Road.
Eglinton Crosstown LRT Project
Work on the 19-kilometer corridor – which includes a 10-kilometer underground stretch between Keele Street and Laird Drive – is on schedule and is set to open on Sept. 29, 2021.
Once finished, the LRT will boast 25 stops and link to more than 50 bus routes, three subway stations and GO Transit and Union Pearson Express (UPX) lines.
Mount Dennis Transit Hub
The Eglinton Maintenance and Storage Facility (where the Crosstown’s light rail vehicles will be kept, and which sits on 42 of the 54 acres of the former Kodak lands) is comprised of three buildings — train wash and inspection; maintenance; and transit operations — equivalent to the size of approximately four football fields.
The biggest benefactors of the new transit line will be people living in the neighborhood and businesses along Industry Street and Bertal Road, given their proximity to the Mount Dennis Crosstown Station.
Black Creek Business Area
Greater Toronto Area Industrial Market Statistical Summary, Q4 2018
Q4 2018 GTA Industrial Statistic Summary – Credit: Cushman & Wakefield ULC
Now, taking a step back to look at general industrial trends in Toronto, we can see that the availability of industrial product in the Greater Toronto Area continued to decline further in Q4 2018.
Overall vacancy rates went from 2.4% to 1.5% in the past 12 months, while net rental rates increased to $7.40 PSF – largely driven by e-commerce, 3PL, and logistics companies, as well as food manufacturing and distribution.
North York Industrial Market Statistical Summary Q4 2018
Q4 2018 North York Industrial Statistics – Credit: Cushman & Wakefield ULC
Zooming in to the specific submarket, and we can observe that in Q418′, North York had a 1.2% vacancy rate with average asking net rental rates of $7.71 PSF.
THE BLACK CREEK BUSINESS AREA DISTRICT PROFILE – FEATURE PROPERTY
INDUSTRIAL SPACE FOR LEASE – 48,984 SF
Now, a stone’s throw from the Mount Dennis Crosstown station, and benefiting from all of the features and trends we just laid out, is an opportunity to lease industrial space that you may simply not find unless you venture out into the surrounding boroughs or York or Peel regions.
The full details and opportunity are below:
122 Industry Street, North York
122 Industry Street, North York – Office and Shipping
122 Industry Street, North York – Aerial View
122 Industry Street Zoning Map
E1.0 ZONING PERMITTED USES
Ambulance Depot • Animal Shelter • Artist Studio • Automated Banking Machine • Bindery • Building Supply Yards • Carpenter’s Shop • Cold Storage • Contractor’s Establishment • Custom Workshop • Dry Cleaning or Laundry Plant • Financial Institution • Fire Hall • Industrial Sales and Service Use • Kennel • Laboratory • Manufacturing • Office • Park • Performing Arts Studio • Pet Services • Police Station • Printing Establishment • Production Studio • Public Works Yard • Service Shop • Software Development and Processing • Warehouse • Wholesaling Use
THE OPPORTUNITY
122 Industry Street property offers an excellent opportunity to lease a well maintained, functional industrial space at rates well below the market while benefiting from proximity to:
- public transportation,
- major highways (Black Creek Road, Hwy #400 and Hwy #401) and,
- great labor pool.
The property is ideally suited for:
- manufacturing,
- distribution, and
- “last mile” operations.
Features include:
- 2 truck level shipping doors,
- 10% office area,
- heavy power, and
- ample parking.
CONCLUSION
As core Toronto locations face increasing scarcity and growing demand for high-quality opportunities, it is getting harder and harder to lease or acquire almost any kind of real estate asset.
The Black Creek Business Area is going through an unprecedented transformation with the new Eglinton Crosstown LRT line and Mount Dennis Station in immediate proximity.
If you are an occupier searching for property and have a need for immediate occupancy please give us a call.
Goran Brelih and his team have been servicing Investors and Occupiers of Industrial properties in Toronto Central and Toronto North markets for the past 25 years.
Goran Brelih is a Senior Vice President for Cushman & Wakefield ULC in the Greater Toronto Area.
Over the past 27 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.
Goran is currently serving as President of the SIOR ‐ Society of Industrial and Office Realtors, Central Canadian Chapter and on the Board of Directors of Muki Baum Accessibility Centre, a Toronto‐based NGO which provides support to children and adults with complex disabilities.
Specialties:
Industrial Real Estate Sales and Leasing, Investment Sales, Design Build and Land Development
About Cushman & Wakefield ULC.
Cushman & Wakefield is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, advisory, and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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.
