Grosvenor has recorded the largest single lease deal in its 75-year Canadian history, with merchandise distributor S&S covering an entire 162,250-square-foot warehouse on Annacis Island in Delta, B.C.

The long-term lease covers the full Millennium 6 building at 1005 Derwent and supports S&S’s plan to more than double its Canadian operations in the Vancouver region. The company expects to invest about $50 million in inventory at the new facility, which is scheduled to open in the fourth quarter of 2026.

“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,” said Robert Duteau, executive vice-president, investment at Grosvenor’s Canadian subsidiary.

The expanded warehouse, located near S&S’s existing Vancouver distribution centre, will add 20,000 forward-picking locations and incorporate autonomous mobile robots to improve order speed, accuracy and fulfillment. The company said the investment will increase inventory capacity and strengthen service for customers across Canada.

“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 at 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. As customer expectations continue to evolve, this expansion positions us to deliver broader product access, faster fulfilment, and the high level of service our customers count on.”

Sean Ungemach, executive vice-chairman at Cushman & Wakefield, represented S&S in the transaction. He said the S&S lease reflects the growth of the B.C. industrial real estate sector.

“Large format warehousing has stabilized, and vacancy has dropped to below 1% again, which makes industrial assets such as Millenium 6 hard to come by in B.C.,” he said. “We couldn’t be more pleased by the long-term relationship this deal creates between two distinguished parties.”

The lease comes as Grosvenor prepares to begin construction of Millennium 7, a 156,000-sf warehouse adjacent to the S&S facility. The company said the project is part of its long-term strategy to modernize its industrial portfolio on Annacis Island.

“Looking ahead, our plans for continued improvements to Annacis Island include repositioning our industrial portfolio as a modern, future-ready logistics and manufacturing hub,” Duteau added. “Tenants such as S&S are crucial to this vision.”

Grosvenor acquired Annacis Island in the early 1950s and continues to own 185 acres on the island.

Pictured: Broadmead Village mall in Saanich, B.C.

Photo: Grosvenor