Challenge

CBRE Global Supply Chain Practice was approached by Senior Management of DHL Global Forwarding in order to assist with the consolidation and integration of several facilities across North America under the new DHL brand. Up until the merger of Danzas, AEI and Loomis, Canadian real estate operations were extremely decentralized to the extent that reporting and approval was slow and haphazard. The ultimate goal was to achieve autonomy within the newly merged entity, create a smooth and seamless transition and most importantly, ensure that the newly branded entity was efficient, well located and capable of obtaining a 497 Canada Customs Bond.

Solution

After a formal presentation outling the width and breadth of our capabilities, CBRE’s Global Supply Chain Practice was appointed the sole provider of real estate services for DHL Global Forwarding in North America. As part of this mandate, we completed a thorough cost benefit analysis comparing the cost of locating into one centralized facility against both two and three building scenarios. Using complex financial and analytical tools, we were able to show DHL that they would realize significant cost savings and increase efficiency by moving to a two building scenario. The result lead to leasehold interest in 211,000 sq. ft. at 6200 Edwards Blvd, Mississauga, which complimented their nearby 90,000 sq. ft. corporate headquarters at 100 World Drive.

Result

The benefits realized by DHL through the leasing of this new facility are extensive and include; immediate access and exposure to Hwy 401 at Hurontario Street, close proximity to their existing Canadian Headquarters facility, reduced occupancy costs due to limited leasehold work required, increased efficiency in a modern distribution facility and flexibility with lease term through a termination provision in their lease.