Grosvenor Property Canada has signed a major lease transaction with S&S, a tech-forward leader in branded merchandise distribution, for the entire Millennium 6 building (1005 Derwent), a 162,650 square foot warehouse at Annacis Island.

In 1952, Grosvenor acquired Annacis Island as its first significant international investment. It 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. Forming a significant part of its stewardship story in the Vancouver market, Grosvenor continues to maintain ownership of 185 acres on the Island.

Commenting on the 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 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.

“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.”

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 Millenium 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.”

This transaction at Millenium 6 showcases Grosvenor’s ongoing commitment to the island, especially as the company prepares to begin construction on Millenium 7, a new 156,000 square foot, best-in-class, sustainably designed warehouse on Annacis that will be situated alongside the S&S facility. The new M7 development project is an important part of Grosvenor’s long-term plan to reinvest and deliver operational excellence within its Canadian investment property portfolio.

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

Enrique Escalona, Vice President, General Manager of Canada for S&S added, “This expansion represents a significant investment in our Canadian business and reinforces our long-term commitment to the region. Our customers are central to everything we do, and we’re excited to bring advancements to this facility that will better support their businesses.”