THE City of Surrey and Prologis, a global leader in logistics real estate, are in advanced discussions on a proposed long-term lease that will support significant investment, create hundreds of local jobs and strengthen Surrey’s position as a key economic hub in British Columbia.

On Monday, Surrey Council authorized the City to proceed with the proposed lease of 36 acres of City-owned land in Campbell Heights, subject to the completion of standard due diligence, execution of definitive agreements and satisfaction of closing conditions. Prologis, a San Francisco-based company that has operated in Canada for more than two decades, is evaluating plans for a major logistics development on the site.

When completed, the proposed lease is expected to approximately double the City’s annual revenue from the property, creating significant long-term value for residents.

“When a global company like Prologis chooses Surrey, it sends a strong message about the opportunities in our city,” Surrey Mayor Brenda Locke said. “This proposed investment reflects Surrey’s strategic location, strong transportation connections, and reputation as a great place to do business. It will create local jobs, boost our economy and help build a strong future for our city.”

Prologis, whose customers include Lululemon, Amazon, Walmart, Home Depot and Coca-Cola, is considering the development of approximately 721,000 square feet of industrial space that could support logistics, warehousing, distribution, office and parking uses.

“Surrey is an important market with strong infrastructure, access to transportation and a growing business community,” said Matt Brock, VP and investment officer for Prologis. “We look forward to working with the City as this project moves forward.”

The proposed agreement is projected to generate more than $1 billion in combined lease and property tax revenue over its 62-year term. The City would also retain ownership of the land throughout the lease and beyond, preserving a strategic public asset for future generations.

Campbell Heights is one of Metro Vancouver’s leading industrial and business parks and one of the region’s remaining opportunities for industrial growth. Investments by companies such as Beedie and Toyota reflect its growing importance as a major employment centre in Surrey.