Grosvenor Property Canada has signed a landmark lease with S&S, a tech-forward leader in branded merchandise distribution, for the entire Millennium 6 building at Annacis Island. The 162,650 square foot warehouse at 1005 Derwent represents the largest single lease in Grosvenor's nearly 75-year Canadian history.
Historical Context of Annacis Island
In 1952, UK-based Grosvenor acquired Annacis Island as its first significant international investment. The island opened three years later as Canada's first industrial park and is recognized today as a pioneering example of private-sector industrial planning, environmental leadership, and long-term asset management. Grosvenor continues to maintain ownership of 185 acres on the island.
Details of the Lease Transaction
Robert Duteau, Executive Vice President, Investment who leads Grosvenor’s Investment and Asset Management across Canada, said: “This transaction represents the single largest lease within Grosvenor’s Investment portfolio in our nearly 75 year Canadian history. 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.”
S&S Investment and Expansion
S&S is investing an estimated $50 million in inventory at the new Vancouver facility, which is slated to be operational in the fourth quarter of 2026. Located near S&S’s existing Vancouver distribution centre, the new facility will more than double its regional footprint. The increased capacity will feature an additional 20,000 forward picking areas, enabling broader and deeper inventory across key product categories. The facility will also add modern autonomous mobile robots as part of its automation strategy, improving speed, accuracy, and overall order quality.
Impact on Operations and Customers
“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. 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.”
Industrial Market Conditions
Sean Ungemach, Executive Vice Chairman of Cushman & Wakefield who represented the tenant in the transaction, said: “The growth we are seeing in our province’s industrial sector is backed by transactions like this one between Grosvenor and S&S. 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. We couldn’t be more pleased by the long-term relationship this deal creates between two distinguished parties.”
