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Sleeman leaves Lachine for Rivière-des-Prairies

08/24/2017

Sleeman leaves Lachine for Rivière-des-Prairies

Third largest brewer in the country, Sleeman took possession of 9225 Henri-Bourassa Boulevard East on June 1st.

Sleeman Breweries are relocating their Montreal distribution centre from Lachine to Rivière-des-Prairies, doubling their storage space.

Sleeman signed a 15-year lease in Rivière-des-Prairies for an area of nearly 275,000 square feet.

The Lachine warehouse that Sleeman is vacating is now available for subletting.

The brewer of La Fin du Monde and Blanche de Chambly has great storage needs to meet since obtaining the mandate in April to distribute Carlsberg and Kronenbourg beers in Québec. The company also renewed a distribution contract with Diageo, whose portfolio includes Guinness and Harp beers.

Sleeman chose to move to the east of this Québec metropolis to be closer to its customers and improve efficiency. Its sales are actually concentrated in Montreal-East and on the North Shore.

“We were at full capacity in Lachine and we were looking to expand. In Rivière-des-Prairies, you can quickly access the A25 and the A40,” says Sylvain Blanchette, director of distribution and warehousing in Québec, “The location and size of the new warehouse gives us operational flexibility for storage and distribution in the years to come.”

Owned by the Japanese brewer Sapporo, Sleeman produces beers from the parent company and from the Unibroue, Sleeman and Old Milwaukee brands. It also distributes Smirnoff Encore's malt-based beverages.

FALL DEVELOPMENTS

Third largest brewer in the country, Sleeman took possession of 9225 Henri-Bourassa Boulevard East on June 1st. The brewing company signed a 15-year lease in Rivière-des-Prairies for an area of nearly 275,000 square feet. The move of some 140 employees is scheduled for the fall, once the main handling systems are installed.

The client is represented by Paul-Éric Poitras and Gabrielle Saine of NAI Commercial, while the lessor, JP Métal, was represented by Peter Karambatsos of Terrex.

The 104,000 sq. ft. warehouse at 1100, 50th Avenue in Lachine is now available for subletting. The 16,000 square feet of adjacent office space will be vacant by June 2018. Until then, Sleeman's regional administration is looking for new offices in Montreal.

A LANDLORD’S [A1] MARKET

Sleeman's lease is one of the largest transactions in the industrial sector in Montreal in the second quarter of 2017, according to the most recent report from CBRE real estate agency.

The availability rate for industrial premises now stands at 6.9% according to CBRE, which is less than the 8% average that existed during the last seven years. “The rent trend is up slightly, but negotiations with landlords are becoming more and more difficult for tenants,” warns CBRE, arguing that the industrial market is now tilting in favour of owners.

Similar remarks are made by Cushman & Wakefield in their own study of the industrial market in the second quarter.

“The decline in the vacancy rate leaves prospective tenants with fewer and fewer options; soon, landlords may be in a position to demand higher rents,” Cushman writes. The agency calculated that the market absorbed nearly 1.2 million square feet in the last quarter.

RECOVERY OF MANUFACTURING ACTIVITY

The agency is even seeing recovery in manufacturing activity in sectors such as textiles and printing. Luciano D'Iorio, CEO of Cushman in Québec, gives the example of the large format printer, Groupe Phipps Dickson Integria (PDI), which has expanded to 4000 Industrial Boulevard in Laval. A second example is Joseph Ribkoff, a manufacturer of men’s suits, which just rented 120,213 square feet at 4141 Jean-Noël-Lavoie Highway.

In terms of investment, two transactions attracted attention during the quarter. Groupe Shapiro and Triad bought the former Mabe appliances factory at Notre Dame and Dixon for $6.9 million. Then Vista (Jordan Aberman) bought the old Energizer battery factory, closed in 2015, at 7101 Notre-Dame Street East, for $16 million.

 [A1]Autre trad. poss. : AN OWNER’S MARKET (on peut remplacer ‘landlord’ par ‘owner’ partout au besoin).

 

 

*Translation of André Dubuc, newspaper article ''Sleeman quitte Lachine pour Rivière-des-Prairies'', La Presse + . August 3rd, 2017.
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