Grosvenor Signs 162,650-SF Warehouse Lease with S&S at Annacis Island, Cushman & Wakefield Represents Tenant

Grosvenor has signed a 162,650-square-foot full-building warehouse lease with S&S, a tech-forward leader in branded merchandise distribution, at the Millennium 6 building located at 1005 Derwent on Annacis Island. Cushman & Wakefield represented the tenant in the transaction, which Grosvenor has characterized as the largest single lease in its Canadian investment portfolio in nearly 75 years of operating in the country.

Deal Details and Tenant Plans

S&S is expected to take occupancy of the Millennium 6 facility, also referred to as M6, in the fourth quarter of 2026. The company plans to invest an estimated $50 million in inventory at the new facility. The facility will more than double S&S's existing regional footprint, which currently includes a separate Vancouver distribution centre located near the new site.

Planned operational upgrades at the new facility include an additional 20,000 forward-picking areas and the integration of autonomous mobile robots, which S&S says will improve speed, accuracy, and order quality. The company cited the expansion as part of a broader effort to serve customers across Canada from a more scalable distribution network.

"This investment represents much more than square footage and broader inventory; it's an investment in our people, our customers, and the long-term future of our company," said Josh Clark, Chief Operating Officer of S&S. "Expanding our Vancouver operations strengthens our ability to serve customers across Canada while creating a more scalable and efficient network for future growth."

Enrique Escalona, Vice President and General Manager of Canada for S&S, added that the expansion "represents a significant investment in our Canadian business and reinforces our long-term commitment to the region."

Grosvenor's Annacis Island Portfolio and Long-Term Strategy

Grosvenor acquired Annacis Island in 1952 as its first significant international investment. The island opened as Canada's first industrial park three years later, and Grosvenor continues to own approximately 185 acres there. The Millennium 6 lease represents a milestone transaction for the landlord's Canadian operations.

"This transaction represents the single largest lease within Grosvenor's Investment portfolio in our nearly 75-year Canadian history," said Robert Duteau, Executive Vice President, Investment at Grosvenor, who leads the firm's investment and asset management across Canada. "S&S's decision to relocate to Annacis Island reinforces the asset as a core, high-performing industrial node advancing our broader objective of driving value through strategic leasing and aligns with our refined strategy centred on investing in Canada for the long-term."

Duteau added that Grosvenor's plans for Annacis Island include "repositioning our industrial portfolio as a modern, future-ready logistics and manufacturing hub," and described tenants such as S&S as "crucial to this vision."

Millennium 7 Development

Alongside the Millennium 6 lease, Grosvenor announced it is preparing to begin construction on Millennium 7, a new 156,000-square-foot warehouse on Annacis Island that will be situated adjacent to the S&S facility. Grosvenor described the Millennium 7 project as sustainably designed and framed it as part of the firm's long-term plan to reinvest in its Canadian investment property portfolio.

Market Conditions in Metro Vancouver Industrial

Sean Ungemach, Executive Vice Chairman of Cushman & Wakefield, who represented S&S in the transaction, pointed to tight market conditions as context for the deal's significance. "Large-format warehousing has stabilized, and vacancy has dropped to below 1% again, which makes industrial assets such as Millennium 6 hard to come by in BC," Ungemach said. "We couldn't be more pleased by the long-term relationship this deal creates between two distinguished parties."

Sources

Grosvenor Property Canada – Grosvenor signs S&S to its largest ever lease on Annacis Island