Case Studies

Coca Cola Refreshments Canada Company

Challenge

Coca Cola needed to improve and expand their distribution facilities within Richmond British Columbia. Two of their currently facilities did not meet their needs as far as efficiencies, size and security. They want to put the two locations under one roof in a secure standalone building and be able to move in within three to four months.

Solutions

Coca Cola engages CBRE who immediately embarked on a comprehensive search for suitable existing, planned, and off-market opportunities. A detailed request for proposal process was under taken of two short listed options.

Results

Due to Coca Cola’s need for a secure facility and proximity to the manufacturing plant we focused on an existing property in South Richmond. The building had a tenant that required relocating to a smaller building in a short timeframe, and minimal improvements were required as the facility had existing security features and all other features met Coca Cola’s requirement.


CSA TRANSPORTATION

Challenge

In 2006, CSA Transportation was looking for a customized solution for its cross-dock facility needs.  Through a formal pitch process CBRE was hired to negotiate a land sale a build to suit transaction.  By 2012 CSA had outgrown its premises.  Due to the specialty purpose nation of its facility requirements and the overall cost of holding two facilities at once, a simple relocation was not possible.

Solutions

CBRE marketed CSA’s current facility for sale and was able to source a owner / user purchaser who would allow CSA to lease the facility back for 18 months.  During this period CBRE was able to negotiate another build-to-suit transaction on behalf of CSA.

Results

With the sale / leaseback of its facility CSA was able to receive the capital necessary to purchase a larger land site and building.


 

loblaw companies limited - campbell heights

Challenge

Loblaw was in need of streamlining and expanding their distribution network in Metro Vancouver. As part of these plans it involved the relocation of two existing facilities, one located on Grandview Highway and the other a cold storage facility in Pitt Meadows. The third part was to acquire a minimum of a 50 acre parcel to build a 420,000 square foot freezer cooler facility, with future expansion potential of up to 900,000 square feet.

Solutions

Loblaw engages CBRE who immediately embarked on a comprehensive search for planned and off-market opportunities. Due to the lack of available industrial land in the lower mainland of British Columbia there were no listed available properties. We were however able to uncover two suitable off market options that fit the logistic criteria of Loblaw.

Results

We focused on a 60 acre site in South Surrey for Loblaw. The site had a partnership of ten owners and required us to find them another site to reinvest their monies, which we were able to acquire another off market site in the area of 35 acres. We then worked closely with the city of Surrey as the designated design guidelines did not allow Loblaw to build the type of facility they required. We were able to amend the guidelines and Loblaw built their state of the art facility and is fully operational with future expansion plans already underway.


 

loblaw companies limited - south burnaby

Challenge

As part of its aggressive expansion into the growing ethnic food market in Canada, Loblaw acquired Asian food distributor Canada Six Fortune Enterprise Co. Ltd. In 2011. To accommodate Loblaw’s target growth plans, the Canada operations in Vancouver, BC would have to relocate from its current 50,000 square foot premises. A new facility of approximately 100,000 square feet including cooler and freezer improvements was to be in operation as soon as possible.

Solutions

Loblaw engages CBRE who immediately embarked on a comprehensive search for suitable existing, planned, and off-market opportunities. A detailed request for proposal process was under taken of three short listed options.

Results

Due to Loblaw/Canada’s specific, food-related, requirements, a design-build option proved to be the most attractive solution for near and long-term growth plans. A highly efficient 100,000 square foot dry storage, cooler and freezer distribution centre is under development or a prime parcel of land in south Burnaby’s Big Bend area.


 

lg electronics canada, inc.

Challenge

Prior to 2008, LG outsourced its distribution centre to a third-party logistics provider and, therefore, were not familiar with the local industrial market.  As the expiry of the third-party contract approached, LG engaged CBRE to review the potential of bringing its distribution centre in house.

Solutions

CBRE conducted a comprehensive survey of all potential distribution centre locations best on LG’s facility requirement.  The best suitable options were shortlisted and a competitive environment was created through a Request for Proposal process.

Results

LG was able to relocate from an inefficient third-party situation to a custom renovated distribution centre in a compressed timeframe.  In 2011 CBRE also created a competitive environment for LG to complete an early short-term renewal at below market rates.

CBRE was awarded the NAIOP Industrial Lease of the Year Award in 2009 for the original LG Electronics transaction.