Major distributor signs Grosvenor's largest Canadian industrial lease in 75 years | Daily Hive

Major distributor signs Grosvenor's largest Canadian industrial lease in nearly 75 years

Millennium 6 building at 1005 Derwent Way at Millennium Business Park on Annacis Island, Delta. (Grosvenor)

A major branded merchandise distributor is significantly expanding its Metro Vancouver operations with a new warehouse on Annacis Island, in what developer Grosvenor says is its largest industrial lease in Canada in nearly 75 years.

S&S recently signed a lease for the entire Millennium 6 building at 1005 Derwent Way, a part of the Millennium Business Park on Annacis Island in Delta. This warehouse building spans about 163,000 sq. ft.

The new facility is located near S&S’ existing Vancouver-area distribution centre and is expected to become operational in the fourth quarter of 2026. The expansion will more than double its regional footprint and involve an estimated $50 million investment in inventory.

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Founded in 1988 and headquartered in Illinois, S&S distributes branded merchandise across North America. Its network carries products from more than 80 brands and provides merchandise, technology, and other business services to customers.

The expanded operation on Annacis Island will include an additional 20,000 forward-picking areas, allowing S&S to stock a wider selection and larger quantities of products. The company also plans to introduce autonomous mobile robots as part of its warehouse automation system, which it says will improve the speed and accuracy of fulfilling orders.

“This investment represents much more than square footage and broader inventory; it’s an investment in our people, our customers, and the long-term future of our company,” said Josh Clark, the chief operating officer of S&S, in a statement.

“Expanding our Vancouver operations strengthens our ability to serve customers across Canada while creating a more scalable and efficient network for future growth. As customer expectations continue to evolve, this expansion positions us to deliver broader product access, faster fulfilment, and the high level of service our customers count on.”

1005 derwent way delta millennium 6 building

Millennium 6 building at 1005 Derwent Way at Millennium Business Park on Annacis Island, Delta. (Google Maps)

For Grosvenor, the agreement represents a major milestone in its long-running presence on Annacis Island.

The U.K.-based property company acquired Annacis Island in 1952 as its first major international investment. The industrial park opened three years later, and Grosvenor continues to own and manage approximately 185 acres on the island.

“This transaction represents the single largest lease within Grosvenor’s Investment portfolio in our nearly 75 year Canadian history,” said Robert Duteau, the executive vice-president of investment of Grosvenor.

“S&S’ decision to relocate to Annacis Island reinforces the asset as a core, high-performing industrial node advancing our broader objective of driving value through strategic leasing and aligns with our refined strategy centred on investing in Canada for the long-term.”

The deal comes as Metro Vancouver’s limited supply of large industrial properties continues to make sizable warehouse spaces difficult to secure. Commercial real estate firm Cushman & Wakefield, which represented S&S in the transaction, says vacancy for large-format warehouse space in B.C. has fallen below one per cent again.

Grosvenor is also planning another major addition on an adjacent lot. The company is preparing to begin construction on Millennium 7, a new 156,000 sq. ft. warehouse that will be built alongside the S&S facility. Grosvenor describes the project as part of its broader effort to modernize its Annacis Island industrial holdings.

“Looking ahead, our plans for continued improvements to Annacis Island include repositioning our industrial portfolio as a modern, future ready logistics and manufacturing hub,” continued Duteau. “Tenants such as S&S are crucial to this vision.”

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