A 330,540-square-foot warehouse in the East Richmond Business Park will soon be home to IKEA’s new western Canada distribution centre. It is expected to open in April 2018 and will service all four of the retailer’s Alberta and B.C. locations.
Pure Industrial Real Estate Trust (PIRET) owns the property, which was built on a speculative basis. PIRET has entered into lease agreement with IKEA to occupy 100 per cent of the site on a seven-year lease term. Located on 7031 York Road, this state-of-the-art distribution facility is the fourth and final phase of development in the Trust’s existing East Richmond Business Park. The development is expected to reach substantial completion in Q4 2017.
In 2015, IKEA Canada announced its ambition to double in size and expand coast to coast. This facility will fulfill both IKEA’s in-store and e-commerce distribution requirements in Western Canada and will be their third distribution centre in Canada.
“As IKEA continues to grow, we recognize the importance of making the shopping experience more convenient and enjoyable for Canadians,” said IKEA Canada president Marsha Smith. “Building a stronger distribution network is one of the many ways we are ensuring we meet our customer’s expectations in western Canada.”
In October 2016, the Trust announced the commencement of the development of this asset on a speculative basis for a total estimated development cost of $40.0 million.
With this new deal in Richmond, IKEA will become the second-largest tenant in PIRET’s portfolio, representing approximately 5.3 per cent of its total revenue.
