LG Electronics Canada

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.