Quebec Developer Enters Ontario With Industrial Project in Hamilton
Quebec Developer Enters Ontario With Industrial Project in Hamilton
OleaDev’s LinkSix Project Comes After Firm Completed Biggest On-Spec Warehouse in Quebec
Building industrial property in the province of Ontario while doing the same in Quebec might lead a developer to compare the degree of difficulty in each region.
So which of Ontario and Quebec offers developers a faster runway to getting an industrial structure built? Montreal developer Terry Tsatas has gained recent perspective on the question now that his OleaDev Real Estate Group has moved forward with its first project in Ontario: a 415,000-square-foot building with 40-foot ceilings straddling the border of Hamilton and Burlington.
Earlier this year OleaDev launched Quebec’s largest-ever on-spec industrial structure with a 420,000-square-foot warehouse it created along with construction partner Frare & Gallant in Beauharnois, Quebec. That project is now occupied by Keurig Dr Pepper Canada, according to OleaDev’s LinkedIn page.
Tsatas told CoStar News that Canada’s two biggest provinces approach the planning and permitting process with different philosophies.
The Ontario authorities might be slower and more demanding, but there’s a reason for that, according to Tsatas.
“Ontario is more business-oriented and proactive. In Quebec, it’s simpler. You go to your city but then there’s a lot more guesswork,” Tsatas said. “In Ontario, there are multiple authorities that you have to go see but the municipalities and province know what’s going to happen there three years down the road with the services and zoning.”
OleaDev is building its LinkSix project at 566 Highway 6 with financing from BMO Private Equity and expects to complete it in the first quarter of 2025.
Another Project Pending
It will be joined by another major project in Ontario to be announced within the coming weeks, Tsatas said.
LinkSix is being built on speculation without any pre-arranged deal with a tenant, a practice that has only recently become popular in Quebec.
“In Toronto there has always been the spec marketplace. Montreal has always been a much more conservative market,” Tsatas said.
Canada’s industrial property market has attracted much attention over the last few years, as high demand led to better profits and lower vacancy rates, notably in Quebec.
Tsatas does not believe that the Canadian industrial bonanza will continue indefinitely.
“The reality is the market has softened significantly over the last few months and 2024 won’t be an easy year for industrial development,” said Tsatas, who notes that OleaDev has factored this into its plans for LinkSix. “Our philosophy is that this asset won’t be ready in 2024 but rather in 2025 when rates will have stabilized.”
Source CoStar. Click here to read a full story.
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