Amazon has begun construction of what will become its largest Canadian distribution centre, a 3.1-million-square-foot, state-of-the-art building in Ottawa where the online retail giant already operates four facilities of various sizes.

The new multi-level distribution centre is being constructed at 99 Bill Leathem Dr., in the south-end community of Barrhaven, just seven kilometres from another major, multi-level Amazon distribution facility which opened in 2021.

In response to an email request for information from RENX, an Amazon spokesperson said the new facility is being constructed to serve customers across Canada.

The spokesperson confirmed Amazon acquired the property from Montreal-based developer Broccolini in 2024 — a transaction reported last week in CBRE’s Q2 national and Ottawa industrial updates. Broccolini is leading the development of the building.

“Their recent acquisition of the property from Broccolini for $109.1 million reaffirms the company’s commitment to the region,” the Ottawa report summary states.

When it is completed — which is expected in 2026 — the facility would bring Amazon to about seven million square feet of distribution centre space in Ottawa, making the city one of its largest hubs in the country.

Broccolini had previously stated the facility could employ up to 2,500 people. Amazon has not disclosed potential employment figures for the site.

Amazon's relationship with Broccolini

Broccolini has been Amazon’s development partner on both its previous major Ottawa facilities. In those instances, however, Broccolini owned the property during the development phase, and Amazon remained as a tenant leasing the facilities. 

Majority ownership stakes have since been sold to entities of Crestpoint (Citigate) and Concert Properties' CREC Commercial Fund LP (Boundary Road). In both those instances, Broccolini retained an approximately 10 per cent stake.

Amazon has been working with city officials to advance all the required approvals and permits for the 75-acre Bill Leathem site since last fall, the spokesperson told RENX.

The facility will become the fifth Amazon fulfillment and distribution centre in Ottawa, where the company opened its first million-square-foot warehouse in 2019 on a 96-acre site at Boundary Road and Highway 417 in the east end. 

The other major Barrhaven distribution centre is a five-storey, 2.8-million-square-foot facility on Citigate Drive, beside Highway 416. This highway offers direct access to the Highway 401 corridor between Toronto and Montreal, as well as to the U.S. border.

Amazon also operates two smaller local distribution centres in Ottawa.

Ottawa located on the border with Quebec

The positioning of this latest facility also provides easy access to the province of Quebec, which is just across the Ottawa River from Ottawa. Amazon closed all of its major Quebec-based distribution centres in 2024, exiting from seven facilities and approximately 2.25 million square feet of space.

The new Ottawa facility is to comprise 3.13 million square feet on five levels, according to the development plan filed to the city last fall, and subsequently approved. The building will have a footprint of approximately 654,000 square feet, somewhat larger than the Citigate facility. 

Ottawa has seen a significant increase in industrial activity during the past five years, now boasting an inventory of approximately 38.7 million square feet of space, with an additional 3.65 million square feet (including Amazon) under construction according to CBRE’s data. Its availability rate was 3.5 per cent at the end of Q2, with a vacancy rate of 2.2 per cent.

Net absorption during the quarter was -225,286 square feet, the largest drop recorded over the past three years, although the market does remain in a healthy balance.

Average net asking rents dipped very slightly (12 cents) to $16.89, roughly where it has remained for the past nine months after three years of steady increases.