Company: Farm Boy (TSE: EMP.A) is a Canadian food retailer that specializes in selling fresh produce and food products.
Challenge: A well-respected brand in Eastern Ontario, Farm Boy made the decision to expand into the Greater Toronto Area. The expansion would require a distribution center that could meet the following requirements:
- Proximity to the Ontario Food Terminal
- Flexible rent and square footage commitments to allow for growth
- A facility that aligned well with the prestige brand and image Farm Boy had worked hard to create
Response: LIDD began the assignment by completing an operational assessment of Farm Boy’s existing distribution centre in the Ottawa region. In tandem, LIDD’s Toronto based industrial real estate advisory team was introduced. A review of surrounding opportunities and competitors in the market place was completed, as well as an RFP to the Toronto West landlord community.
Solution: LIDD maximized leverage with the landlord community by running a competitive process. This created more than one viable opportunity for Farm Boy to consider.
Multiple rounds of negotiation were completed that resulted in Farm Boy securing a 92,000 SF facility. The facility was secured with significant rent abatement, flexibility for future growth and substantial landlord improvements.
