U.S.-based industrial developer Panattoni's Canadian affiliate secured the top commercial real estate sale of the second quarter, a deal selected as the top transaction in the CoStar Power Broker quarterly deals awards.
Based in Irvine, California, Panattoni has operated in Canada since 2005 and developed millions of square feet of industrial, logistics, and manufacturing facilities.
In April, Panattoni Canada sold three large logistics properties in the Greater Toronto Area to Pure Industrial for $286 million. The trio of buildings measuring over 1 million square feet includes 2260 East Matheson Blvd. in Mississauga, Ontario and 4680-4670 Garrard Road in nearby Whitby.
The major second-quarter sale could set the stage for Panattoni to redevelop land that has operated for decades as the 18-hole Twin Willows Golf Club in northwest Edmonton. The industrial developer plans to build up to 2 million square feet of industrial space at the 100-acre site after buying it this year.
Pure Industrial’s acquisition comes as Toronto’s industrial vacancy rate dipped to 3.9% from a recent peak of 4.5% as warehouse construction slows after a yearslong construction boom and logistics demand picks back up across the region, according to CoStar analytics.
Matt Picken, Bryce Gibson, Jared Cowley and Vienna Loo of JLL were the listing brokers in the Pure Industrial transaction.
In addition to Panattoni's top sale, here are other top transactions recognized in CoStar's quarterly deal recognition.
Top industrial lease deal
Logistics firm signs country’s biggest spec industrial deal
Oxford Properties signed a top second-quarter deal with ID Logistics Canada in what the developer said is the largest lease recorded in Canada for an industrial property built on speculation without a signed tenant.
ID Logistics Canada leased the 1.1 million-square-foot building at 10725 Louis St. Laurent Ave., the largest of four buildings at James Snow Business Park, Oxford’s master-planned industrial development slated to span 14 buildings totaling 3.3 million square feet when finished.
The developer said it leased 300,000 square feet to another logistics company to fill the development's 1.55 million-square-foot first phase.
Oxford Properties, the real estate investment arm of the Ontario Municipal Employees Retirement System, is developing the business park in Milton, one of Greater Toronto’s fastest-growing towns.
Douglas Scarlett was the in-house representative for Oxford Properties in the lease.
Top office lease deal
Expanding Toyota Canada inks deal for Toronto offices
Toyota Canada secured a large block of sublease space at a Toronto business complex as the auto giant embarks on a project to build new headquarters offices in the city and open new parts distribution centres in Western Canada.
The automaker subleased five floors in an 18-storey building at Consilium Place, a three-tower complex owned by Kevric Real Estate in the Scarborough City Centre district.
The office sublet deal signed in May followed Toyota Canada's announcement the prior month that it plans to spend $300 million to build new facilities in Canada, including a new 225,000-square-foot head office at its current 1 Toyota Place headquarters in Toronto.
The Japan-based automaker expects to bring its sales, marketing, distribution, service and training operations into the new headquarters building. The automaker also plans to replace its Western Canada parts distribution centre near Vancouver with new facilities in nearby Surrey and in Calgary, Alberta.
The parts facilities are expected to open in 2028. Toyota hasn't announced a construction schedule for the planned head office.
Patrick Cowie and Graeme Young with Colliers represented the sublandlord in the Consilium Place sublease.
Top retail lease deal
Athletic club to expand with two-floor facility in Toronto
In the top retail deal of the second quarter, Pure Athletic Club signed a 10-year lease in April to open a new club on the lower floors of Liberty Market Tower, a residential building developed by Lifetime Developments in Toronto's Liberty Village.
The performance-focused athletic training business leased 38,000 square feet on the third and fourth floors at the 28-storey apartment and condo building.
Founded by partners Adam Murray, Dorian Hamilton and Vlad Surma, Pure Athletic will keep operating its original 36,000-square-foot training and muscle recovery facility in Barrie, north of Toronto, according to its website.
The club's facilities include fitness and testing machinery from such international brands as Atlantis, Prime, NewTech Wellness and Watson.
Andrew Chapman and Ashton Glenn of Cresa represented Pure Athletic in brokering the new lease at Liberty Market Tower.