About 75 per cent of the 1.12-million-square-foot first building at QuadReal Property Group’s expansive Station Twelve industrial park in Caledon, northwest of Toronto, has been leased.

The Station Twelve site, which comprises approximately 325 developable acres, was acquired in 2022 and 2023, QuadReal senior vice-president of industrial east Gus Tsoraklidis told RENX.

The location at the intersection of Mayfield and Dixie roads offers access to the region's major highways network, Toronto Pearson International Airport and, for people who will work there, Brampton Transit. 

A nondisclosure agreement with the tenant which has pre-leased 850,000 square feet in the building, currently under construction at the foundation level, prevents Tsoraklidis from naming the firm. The building is anticipated to be ready for occupancy in late 2027.

That leaves approximately 262,000 square feet unleased in a building that will feature a 40-foot clear height, 191 dock doors, four drive-in doors, parking for 320 trailers and 570 vehicle parking stalls. Office space will account for 2.5 per cent of the building.

“There’s special equipment and tenant fit-out that's a little bit unique, but it fits within the generic box that you would be accustomed to seeing and with the specs you're accustomed to seeing in a logistics space,” Tsoraklidis said, adding that QuadReal’s new industrial developments are appealing in the ongoing tenant flight to quality, while meeting the need to move goods in and out efficiently.

The second building in Phase I

Station Twelve’s first phase also includes a second building encompassing 936,832 square feet, 2.5 per cent of which will be dedicated to office space. It will also have a 40-foot clear height and offer 152 dock doors, four drive-in doors, parking for 194 trailers and 563 vehicle parking stalls.

Tsoraklidis said QuadReal is marketing the building as it advances the entitlement process.

“We build buildings, but we also focus on the people in those buildings,” Tsoraklidis said. “So we've got trail systems and walking paths included in and throughout the development.

“We think that that approach to not only meeting the business needs of our customers and tenants, but actually caring about their people, is something that resonates with tenants.”

Upon full build-out, Station Twelve is anticipated to have nine buildings that will be able to provide space ranging from 100,000 to a million square feet and allow tenants to grow within the portfolio. All of the buildings will be designed so they can be demised to some extent.

Strong belief in industrial real estate

While QuadReal is seeking to pre-lease Phase 1 at Station Twelve, Tsoraklidis said the company is willing to look at projects on a case-by-case basis and has had good leasing success with recent speculatively built industrial buildings in Markham and Brampton, two other Greater Toronto Area communities.

“We have really strong conviction in the industrial market and we're a long-term developer and operator,” Tsoraklidis said. “We really believe in strong markets, Toronto being one of them, and demand has been quite resilient. 

“Our vacancy rates, while they've come up a little bit, are actually some of the lowest industrial rates globally.”

Rents have stabilized and a balanced market has been achieved after explosive industrial development earlier this decade brought a lot of new space online to be absorbed.

While there’s constant churn at QuadReal’s industrial properties — particularly in units under 30,000 square feet, which Tsoraklidis said comprise about one-third of its portfolio — leasing has been strong this year.

QuadReal’s current portfolio and recent developments

QuadReal’s Canadian industrial real estate portfolio is comprised of 42 stabilized buildings encompassing 22.7 million square feet, with about 9.5 million square feet in the Greater Toronto Area. It has another 1,500 acres for industrial development.

The company is delivering a 330,000-square-foot facility at the corner of Torbram Road and Queen Street East in Brampton. 

About two-thirds of the available 769,397 square feet in the recently developed three-building One Steelcase project at Steelcase Road and Woodbine Avenue in Markham has been leased. 

QuadReal continues to seek land for future industrial development as well as existing industrial buildings to add to its portfolio. 

“We're open for business,” Tsoraklidis said. “We're here to discuss, learn, listen and try to cater products to tenant needs.”