Broker Insights: Mitch Blaine on Closing a $10.5M Industrial Deal in Cambridge, Ontario

Mitch Blaine, Executive Vice President and Practice Lead at JLL—and 2021 Industrial Broker of the Year—continues to deliver results across asset classes. In a year marked by economic uncertainty, Mitch successfully led a $10.5 million industrial transaction for a 70,000-square-foot property in Cambridge, Ontario. The deal underscores his ability to navigate shifting market dynamics and unlock value in both industrial and office sectors. Below, Mitch shares his perspective on market conditions, key takeaways, and the behind-the-scenes work that made this deal possible.

SIOR Canada: What are the current market conditions impacting this asset class?

Mitchell: The Southwestern Ontario industrial market continues to demonstrate strong fundamentals despite a more challenging macroeconomic environment. Rising interest rates have led to increased borrowing costs, making underwriting deals more complex and requiring a more thoughtful approach to structuring transactions. Additionally, ongoing trade and tariff uncertainties with the United States have introduced volatility in supply chains, impacting tenant confidence and operational strategies. Despite these challenges, Cambridge remains a prime industrial hub and properties with low coverage ratio and outdoor storage potential remain in high demand. The combination of below-market in-place rents and a fully leased asset created an attractive value-add opportunity for an investor/occupier seeking growth potential.

SIOR Canada: What were your biggest learnings and takeaways from this transaction?

Mitchell: This transaction reinforced the importance of identifying and positioning properties that offer both stability and upside, especially in a fluctuating market. With in-place rents approximately 22% below market and a W.A.L.T. of 4.2 years, we recognized the opportunity to market the asset as a value-add play to attract a buyer focused on long-term growth. We learned that in this high-interest rate environment, buyers are more selective, requiring a compelling investment thesis that highlights operational efficiencies and future income growth. Our ability to clearly articulate the asset’s potential, while addressing concerns about market volatility and interest rate sensitivity, was key to creating a win-win scenario for both the seller and the buyer.

SIOR Canada: What groundwork was required to successfully close this deal?

Mitchell: Successfully closing this deal required a high degree of diligence and creativity. Given the increased cost of capital, we worked closely with the buyer to structure a solution that balanced their return expectations while meeting the seller’s pricing objectives. This involved extensive financial modeling to demonstrate how rental escalations and future lease renewals would offset short-term capital costs. Throughout the process, we remained agile and proactive, addressing concerns, qualifying and quantifying lease underwriting, and ensuring the buyer fully understood the property’s potential, including the value of the oversized 7.0-acre lot and fenced yard, which is a rare and attractive feature in this market and location.

SIOR Canada: What key relationships were built or strengthened throughout the process?

Mitchell: This transaction was a testament to the strength of our relationships and the trust we’ve built with key stakeholders. We demonstrated our ability to uncover hidden value and mitigate risk, ensuring our saw the long-term potential of the asset. On the seller’s side, we reinforced our reputation as a partner who can navigate complex market dynamics and deliver results. Our collaboration with lenders, legal teams, and property management professionals was essential in identifying creative solutions that bridged the gap between buyer and seller expectations. Ultimately, this deal underscored that no transaction happens without aligning the interests of all parties, and having a team like JLL that can adapt, pivot, and execute at a high level makes all the difference in achieving success.

Conclusion

In a market where challenges continue to test even the most seasoned professionals, Mitch Blaine’s approach to the Cambridge transaction showcases what it takes to succeed—strategic foresight, deep market knowledge, and collaborative execution. Mitch and the JLL team delivered a result that reflects the power of experience and adaptability. As market conditions evolve, Mitch remains a trusted advisor for clients navigating industrial and office opportunities across Southwestern Ontario and beyond.