Skyline Industrial REIT has filled an entire 500K-SF former Canadian Tire distribution centre in Calgary with a single tenant, wiping out one of the largest vacancies in its portfolio in one deal.

The five-year lease at 6600 72nd Ave. SE is the largest single lease by square footage in the REIT’s history and lifts its committed occupancy to 98%. Skyline has not identified the tenant, describing it as a manufacturer of oil and gas extraction equipment that will use the property for its infrastructure technology operations.

The deal completes another turn for a building Skyline acquired for $67M in 2021 with Canadian Tire occupying the entire property.

Canadian Tire later shifted the operation to a 352K-SF distribution centre at 5500 Dufferin Blvd. SE, leaving Skyline with nearly half a million square feet to refill.

The 24-acre property has 36-foot clear heights, 78 dock doors and four grade-level doors.

Avison Young’s Kent Bacon and Colin Ludwig and CBRE’s Luke Hamill and Evan Renwick worked on the new lease.

For Skyline, the transaction removes a sizeable vacancy in one stroke from a Canadian industrial portfolio totalling 9.7M SF as of June 30.