Skyline Leases Entire 500K-SF Calgary Distribution Site to One Tenant
Skyline Industrial REIT has leased its full 500,000-square-foot former Canadian Tire distribution centre in Calgary to a single tenant, the largest lease by area in the REIT’s history. The five-year deal at 6600 72nd Ave. SE raises Skyline’s committed occupancy to 98% and brings in an unidentified manufacturer of oil and gas extraction equipment. Skyline bought the 24-acre property for $67 million in 2021, then refilled it after Canadian Tire relocated to a smaller facility.
Skyline Industrial REIT has placed a single occupant across the whole 500,000-square-foot Calgary site at 6600 72nd Ave. SE. The five-year agreement is the REIT’s biggest lease measured by area and pushes committed occupancy to 98%. The tenant, not named, makes oil and gas extraction equipment and plans infrastructure technology work there.
The 24-acre property was purchased in 2021 for $67 million while Canadian Tire used all of it. Canadian Tire then moved to a 352,000-square-foot facility on Dufferin Blvd. SE. The building has a 36-foot clear height, 78 dock doors and four grade-level doors. Avison Young and CBRE brokers handled the lease. Skyline’s industrial portfolio was 9.7 million square feet as of June 30.
The lease may stabilize an industrial property and support local logistics/manufacturing employment, though tenant identity and job numbers are unknown. Nearby businesses and workers could benefit from renewed activity at a large Calgary site. For Skyline, higher occupancy may strengthen cash flow and investor confidence. The oil and gas equipment focus could tie the site's fortunes to energy-sector demand, which may affect future hiring and regional economic activity.