Summit Industrial’s internal growth strategy will focus on rental rate optimization, tenant retention and a focused capital expenditure program such that properties remain functional and competitive within their respective geographic markets. While the industrial sector is the largest commercial real estate asset class in Canada, it remains highly fragmented with a high degree of non-institutional ownership. This creates an opportunity for industry consolidation that should provide Summit with future acquisition opportunities in major industrial markets.
They intend to acquire a broad range of industrial product types and spaces in different markets to maximize diversification within their portfolio. This will provide their tenants with optimal spatial choices within their portfolio that will, in turn, promote tenant retention. To complement their acquisition strategy, selective development and expansion opportunities will be undertaken based on tenant demand. These projects will be aimed at improving the overall age and quality of their portfolio, while generating strong returns on investment.