Markets speak, and the commercial real estate market in the Greater Toronto Area is indicating that there is a demand for institutional-grade industrial properties, according to yet another new listing for a high-profile industrial property that came online this week.
After a TELUS-leased industrial property and a Tesla-leased industrial property were listed in recent weeks, this time around it is an industrial property leased to Amazon, among others.
The property is an industrial park consisting of three buildings located at 789 Salem Road North, 689 Salem Road North, and 210 Kerrison Drive East in Ajax. The three properties span a total of 107 acres along Salem Road North between Rossland Road East and Kerrison Drive East.
789 Salem Road North spans 58.2 acres, was constructed in 2021, and is home to 1,080,710 sq. ft of space that is 100% leased to tech giant Amazon.
689 Salem Road North spans 9.7 acres, was constructed in 2023, and is home to 181,281 sq. ft of space that is 100% leased to wholesale company All-Special and panel manufacturer SkyRise Prefab Building Solutions.
Lastly, 210 Kerrison Drive East spans 39.1 acres, was constructed in 2022, and is home to 716,548 sq. ft of space that is 100% leased to clothing company H&M.
The properties are owned by CPSP Ajax Nominee Inc. — a joint venture between investment firm Crestpoint Real Estate Investments and pension fund PSP Investments — and belong to the GTA East Industrial Park originally developed by Crestpoint, Broccolini, and Blackwood Partners.
The Listing
Earlier this month, 789 Salem Road North, 689 Salem Road North, and 210 Kerrison Drive East were together listed for sale by Reid Taylor, Lucas Atkins, Matthew Thrift, Connor Molony, Graham Meader, Colin Alves, Luke Dawson, and Edward Plumley of Colliers on an unpriced basis.
- Address: 789 Salem Road North, 689 Salem Road North, and 210 Kerrison Drive East, Ajax
- Year Built: 2021 / 2023 / 2022
- Site Area: 107.0 acres
- Gross Leasable Area: 1,978,539 sq. ft
- Current Occupancy Rate: 100%
- Price: Unpriced
- Listed By: Colliers (Reid Taylor, Lucas Atkins, Matthew Thrift, Connor Molony, Graham Meader, Colin Alves, Luke Dawson, and Edward Plumley)
According to Colliers, the buildings are equipped with “state-of-the-art” shipping and receiving infrastructure, 40-ft clear heights, and large-format functional warehouse configurations. The properties also include a total of 227 truck-level shipping doors, 363 trailer parking stalls, and 1,160 dedicated vehicle stalls.
The tenancies have a weighted average lease term of 6.8 years, and Colliers says the tenants have made significant capital investments in their spaces. Amazon’s facility was purpose-built for them, H&M’s facility includes an automated conveyor system, and All-Special’s space includes modular cold storage installations.
“At 1.98 million sf, the Portfolio represents approximately 4% of GTA East’s total industrial inventory,” said Colliers in a listing brochure obtained by STOREYS. “Limited near-term power availability in Durham Region makes future development in the immediate area challenging, rendering this scale of product difficult to replicate. The Portfolio is well-positioned to capitalize on sustained demand within Canada’s most critical and supply-constrained industrial market.”
There’s also the location, which is approximately 2 km from Highway 401, provides access to Highway 407 and 412, and is within a 35-minute drive of downtown Toronto. The assets also benefit from the state of the industrial market.
“Greater Toronto is one of North America’s top-performing industrial markets, with a current vacancy rate of 2.2%,” added Colliers. “Demand is supported by a growing consumer base and continued investment in domestic supply chains, while land scarcity and elevated development costs constrain new supply. This offering provides global investors with a valuable long-term land position and immediate scale in one of Canada’s most sought-after industrial markets.”
