Broccolini has sold two industrial buildings totalling almost a million square feet, located on 63 acres of land in Cornwall, Ont., to Michelin for $246.35 million.
Broccolini purchased 80 acres from the City of Cornwall in Cornwall Business Park in June 2022. It’s across the street from where it built a 1.35-million-square-foot distribution centre at 1501 Industrial Park Dr. for Target in 2012.
“We had a pretty strong conviction in being able to invest in that market on the basis of it representing a logistical hub in eastern Canada to service both Ontario as well as Quebec,” Broccolini director of real estate development Toni Wodzicki told RENX in an exclusive interview.
Target’s tenure in Canada was short-lived and its former Cornwall facility is now used by Walmart.
What Michelin purchased
Michelin expressed interest in the fall of 2022 that it would like to occupy the Cornwall property and own it once Broccolini was finished construction. The two companies negotiated a structure for the recently closed deal.
Construction began in August 2023 and was completed in October. The world’s second-largest tire company is already operating at the property, which is considered its flagship distribution centre for Canada.
The property is occupied by two 36-foot clear-height buildings connected by passageways. One is more than 655,000 square feet and the other is more than 325,000 square feet.
The two buildings combine to have 73 loading dock doors and three drive-in doors. There’s parking for 402 trailers and 120 vehicles.
Michelin has the ability to double the size of the smaller building in the future if it wishes, according to Wodzicki.
Broccolini still owns land in Cornwall
Broccolini still owns 17 acres at 1500 Industrial Park Dr. that’s available for a design-build opportunity for various size requirements up to 342,000 square feet.
“We’re not building it on spec, but we’re actively pursuing design-builds or partnerships on the property,” Wodzicki explained.
The land is part of the over-1,600-acre Cornwall Business Park, which is home to large distribution centres, manufacturers and transportation companies.
It’s immediately adjacent to Highway 401 and a 60-minute drive from international airports in Montreal and Ottawa. Access to the United States is 4.8 kilometres away via the Seaway International Bridge, a deep sea harbour is 3.2 kilometres away and a CN freight line bisects the park.
“The City of Cornwall would like to congratulate Broccolini on yet another successful project in the Cornwall Business Park,” Mayor Justin Towndale said in a statement provided to RENX. “This state-of-the-art facility further solidifies Cornwall as a major distribution hub in Canada. We look forward to continuing to work with Broccolini on other development lands in the city.”
Land bank and future industrial acquisitions
Broccolini provides a range of services, acting variously as a general contractor, construction manager, project manager, property manager and developer.
The company owns other Ontario development properties in Nepean and Kanata in Ottawa, St. Thomas, Hamilton, Caledon, Woodstock, Puslinch, Whitby, Cambridge, Milton, Kitchener, Innisfil, Oshawa and Halton Hills.
Wodzicki declined to comment on any specific future industrial developments the 75-year-old company has in its pipeline.
“We’re sitting on great land that we have ready to engage to work with our industry partners to deliver on projects in new, high-efficiency space,” Wodzicki said. “But we’ll be patient as we assess those opportunities and where we can deliver them.”
Wodzicki anticipates acquiring more industrial development sites in the province in 2025.
“We take a broader view of the market in terms of where there are opportunities to service the logistical space,” Wodzicki said of Broccolini’s industrial acquisition and development strategy in the province.
No new spec-built projects at this time
“As it stands right now in Ontario, we’re not building any spec projects.
“But we still have active demand from users seeking to approach us with more curated builds and opportunities. And as such, we feel a number of projects will kick off for us in 2025 on a design-build basis.”
Broccolini also owns 40 development sites in Quebec, most within relatively close proximity of its home base of Montreal.
While the industrial construction and leasing markets were hyper-active earlier this decade as online shopping spiked and concerns with supply chains rose, huge rent increases have moderated and vacancy rates have crept up more recently.
“You can’t paint the entire market with one brush,” Wodzicki explained, noting there are differences even between nodes in the Greater Toronto Area. “The fundamentals for large-scale industrial development still exist.
“We still aren’t in a completely balanced market as it relates to supply and demand.”
Broccolini is focused on getting its sites shovel ready so it can act quickly and accommodate development opportunities when they arise.
