Qualico Properties partners with The Home Depot for major Alberta distribution hub

Acheson, AB - Qualico Properties’ latest major light-industrial development began operations earlier this month.

The Home Depot’s new distribution centre in Acheson will serve as the home improvement retailer’s bulk distribution hub for Northern Alberta.

Located 10 minutes west of Edmonton’s Anthony Henday Drive ring road, the state-of-the-art facility will help boost The Home Depot’s supply chain capacity in the growing northern Alberta market, leveraging design efficiencies, cost savings, and connectivity to key transportation corridors.

The operational start of the new 129,600 sq. ft. distribution centre marks the end of the project’s first phase, with an additional 77,000 sq. ft. of new space on track for operational start in September 2024. When fully built out, the facility will total more than 206,000 sq. ft., with an additional 87,000 sq. ft. of outdoor storage area.

The distribution centre features a large-span warehouse space, high-tech building systems, 3,500 sq. ft. of office space, and 20 loading dock bays (with provisions for an additional 24 bays) on 15 acres of land.

The project adds to Qualico Properties’ growing light industrial portfolio, which also includes a new 500,000 sq. ft. distribution hub and office complex for The Brick in the North 107 Henday Business Park in northwest Edmonton.

Jeff Sutherland, Vice-President, National Leasing and Sales, Qualico Properties, said that cost-effective land assets and industry know-how were key to securing build-to-suit lease agreements for both The Home Depot and Leon’s Furniture (The Brick).

“We were able to capitalize on our inventory of industrial land and development expertise to create a compelling business case for some of the US and Canada’s largest retail companies to work with us,” said Jeff. “I believe that Qualico’s long-term stability, financial wherewithal, and successful track record in retail and office developments were vital to the success of both these projects.”

Another advantage Qualico Properties brings is its inventory of suitable large-scale land for development that balances lower property taxes and building costs, easy access to population centres, and connectivity to logistics routes.

The project team consisting of Qualico Properties, Turner Fleischer Architects, and Dawson Wallace Construction was able to further reduce costs by working collaboratively.

“We worked very closely with our design and construction partners to find creative ways to drive down construction costs wherever possible, including the use of new technologies,” Jeff added.

One of the more significant challenges at the project site involved phasing construction for the expansion while the new distribution centre ramps up operations.

Anthony Kovacic, Project Manager, Qualico Properties, said the project team planned ahead to pre-emptively address challenges relating to phased construction at the site.

“We approached the challenges of phased construction in a few ways,” said Anthony. “First was presenting a business case to proceed with the expansion earlier rather than later to minimize operational impact, phased tenders to procure materials early, and finally careful sequencing of the work during all stages of the project. For example, the decision to pave the entire site before proceeding with the expansion will help ensure more efficient access to the construction site, while minimizing disruption to The Home Depot’s operations.”

The rapid construction pace is expected to generate significant efficiencies and cost savings over time, allowing The Home Depot to build up to full capacity sooner and meet consumer demand throughout northern Alberta.