Broccolini has started construction on Automann’s new 333,363 square-foot logistics facility in Caledon, Ont. as part of a unique deal with the heavy-duty truck and trailer components supplier.

“Automann was running a process in the market to find a solution whereby it could own a building, but it didn't want to take on any development or construction risk,” Broccolini vice-president of acquisitions and investments Toni Wodzicki told RENX.

Broccolini contractually committed to building a facility to meet Automann’s specific needs, including a reinforced slab system to accommodate its very heavy products, since existing buildings in the area couldn’t meet the company’s requirements. 

“There will be a forward sale at the end of the day that's committed to, once we meet our end of the bargain by delivering it for the price and at the time we said we would,” Wodzicki explained.

“It's a unique transaction and speaks to Broccolini's ability to provide creative real estate structures for design-builds in an evolving real estate market.”

The property’s features

The 14.23-acre property northwest of Toronto will serve as Automann’s operational hub in the region and the building will feature a 40-foot clear height, 27 dock doors, three drive-in doors and eight electric vehicle charging stations. 

The building is designed for future rooftop solar installation and will incorporate high-efficiency fixtures and drought-tolerant landscaping to promote sustainability and reduce overall water use.


Completion is scheduled for late 2026.

This is the second of four blocks slated for development at the 88-acre Gateway 410 industrial park on land Broccolini acquired near Highway 410 at 12304 Heart Lake Rd. in June 2021. The building’s official address will be on a new road called Abbotside Way that was created along with other site servicing measures.

A neighbouring 12-acre block in Gateway 410 was previously sold to SEW-Eurodrive, which provides industrial automation solutions for a variety of industries. The company will deliver a new facility on the site and it hasn’t yet been determined if Broccolini will be involved with that.

“There are active discussions on the balance of the lands for other potential design-build solutions, where we can provide either design-build leases or design-build sales,” Wodzicki said of Gateway 410. “We're flexible in terms of these lands and how they can accommodate the evolving needs of occupiers in the Toronto market.”

Other Caledon industrial sites

Gateway 410 is one of four industrial development sites purchased by Broccolini in Caledon this decade, and they combine for more than 350 acres. They’re all slated for design-builds for near-term development of buildings ranging from 100,000 to one million square feet.

“Having had recent success with groups like DSV, Michelin and Lactalis, as well as our long-standing history in partnering with Amazon, we have an immense amount of experience in specialized design-builds and there's an opportunity for us to continue that track record in being able to deliver unique and specialized industrial solutions,” Wodzicki said.

Gateway 410 sits on the northern side of the border with Brampton, which has little greenfield land available for development, so the corridor just north of Mayfield Road is expected to take advantage of that since it offers similar benefits and relative proximity to major highways, intermodal hubs and Toronto Pearson International Airport.


“A lot of Caledon’s industrial development, in terms of its density, has been in Bolton,” Wodzicki said. “But this is an area of Caledon that, in terms of its industrial growth, is going to see significant development over the coming years.”

Ontario land bank

Montreal-based Broccolini owns more than 1,800 acres of employment land in Ontario, from St. Thomas in the west to Cornwall in the east, on sites ranging from three to around 500 acres.

“That gives us a lot of coverage to work with for clients that have multi-market requirements,” Wodzicki said. “It gives us flexibility and allows us to see the dynamics at play within sub-regions across Ontario.”

Broccolini has pulled back on spec development in many Ontario and Quebec markets to focus on build-to-suit projects. But Wodzicki said sites will be considered on a case-by-case basis for spec development subject to location, underlying fundamentals and other market conditions.

“If there's a solution that works for our fund level returns as well as our operational needs, then we're happy to get creative and structure deals whereby we don't have to own the project or the facility at the end of the day,” Wodzicki said. “It allows us to get creative and provide custom real estate solutions to not only our existing clients but new clients that we’re seeking to engage with.”

Broccolini’s land acquisition activity is down from three years ago but Wodzicki said the company has a number of properties under contract that could advance in the next quarter and it will remain opportunistic.

Leasing activity is picking up

Industrial leasing activity picked up across Broccolini’s portfolio in the second and third quarters, according to Wodzicki.

“It's hard to paint the market with one brush because it’s very sub-market specific,” he said. “What's happening in Mississauga and Brampton isn’t the same thing that's happening in Kitchener, Cambridge or Waterloo. 

“There's a different story to each market but we're feeling quite positive about where rents are stabilizing and where the opportunity lies ahead for development, particularly in the Greater Toronto region.”

Broccolini has buildings of 265,802 and 152,828 square feet ready for immediate occupancy at Derry Road Logistics Campus at the corner of Derry Road and Labrador Avenue in Milton, 60 kilometres west of Toronto.

A third building on the campus is fully leased to RONA and Wodzicki is optimistic about the leasing prospects for the other two, especially since the larger one is demisable starting at 62,828 square feet and has 2,442 square feet of finished office space.