How Second Cup Found Flexibility in a Tight Market
Second Cup 6303 Airport Rd Mississauga Size 16,280 SQ. FT. Quick Facts Office Renewal Services Occupier Services Renewal Services How Second Cup Found Flexibility in a Tight Market CHALLENGE Second Cup had recently been sold and wanted to stay in its current location but the building was fully occupied and the landlord as not motivated to offer renewal terms that reflected the current market. SOLUTION The Wilson team employed the services of an independent space planner who confirmed the company could reduce their footprint by 17% if they relocated. An RFP to competing landlords established what financial terms were available in the market and this information was employed to leverage negotiations with the incumbent landlord. RESULTS Because Second Cup was able to convince their Landlord they would seriously consider relocating in order to reduce their occupancy costs they were able to employ market leverage to obtain significantly better renewal terms with a rent free period for space they did not need but were willing to keep.
When Office Strategy Became a Competitive Advantage
Rapp Collins Worldwide 50 Burnhamthorpe Rd. Mississauga Size 24,500 SQ. FT. Quick Facts Business Consolidation Services Relocation Tenant Representation When Office Strategy Became a Competitive Advantage CHALLENGE Rapp Collins Worldwide Canadian affiliate based in Oakville, Hughes Rapp Collins, had purchased Communicaide Integrated Marketing Services which was based in Mississauga and the management team wanted a new, “different” marquis location similar to office space in downtown Toronto with plenty of staff amenities and underground in which to consolidate and grow its newly-amalgamated staff. SOLUTION A space needs analysis determined the new combined location was just over 22,000sf and the parking and amenity requirements quickly focused the search on 50 Burnhamthorpe Road West in the Mississauga City Centre. RESULTS The Wilson team identified office space overlooking the building atrium that had long sat vacant in the “A” class building because of its sloped glass roof – which was the very image the client desired. Knowing the landlord was anxious to lease the space the team employed an aggressively-positioned Offer to Lease to negotiate an above-market leasehold improvement allowance at rental rates that set a new low for Net Effective Rents in the City Centre office market.
The Co-operators Finds the Right Space for Emerging Talent
The Cooperators 61 Kent Ave Kitchener Size 2,500 SQ. FT. Quick Facts New Satellite Office Short Lease Term Services Occupier Services The Co-operators Finds the Right Space for Emerging Talent CHALLENGE The Co-operators is a national insurance company that wanted to open a small office in Kitchener to focus on innovation and attract university talent by employing students on a project-by-project basis. The challenge was finding office space accessible via public transit with sufficient free surface parking owned by a landlord willing to entertain a short lease term. After completing an office needs analysis it was determined their requirement was approximately 2,500 square feet and a search was initiated to identify all viable alternatives in the market. SOLUTION After reviewing the market and conducting a tour the client leased space in the front of an industrial building in Kitchener within walking distance of the downtown core. RESULTS Negotiated a short term lease that met the client’s budget and their accelerated occupancy schedule.
Dillon Consulting Wins Better Terms in a Shifting Market
Dillon Consulting 51 Breithaupt Street Kitchener Size 9,962 SQ. FT. Quick Facts National Account Client Services Occupier Services Market Research Dillon Consulting Wins Better Terms in a Shifting Market CHALLENGE Located in Cambridge, Dillon Consulting wanted to relocate into a “brick & beam” office environment in Kitchener’s downtown core to be nearer to clients and provide employees with better amenities. In spite of a relatively high office vacancy several buildings were in the process of being retrofitted which was about to drive the market vacancy even higher. The financial expectations of landlords were being framed by bank financing rather than office market reality. SOLUTION Completed a Needs Analysis that determined the tenant’s requirement at 10,000sf which is a relatively large requirement in the Waterloo Region. An RFP was issued to establish the market for its tenancy and the competition created by the RFP process combined with our knowledge of one of the new brick and beam conversions who was –particularly anxious to lease space resulted in Dillon finding a new home in the premier brick & beam building in downtown Kitchener. RESULTS Leveraging the market through the RFP process Dillon negotiated a transaction in the Breihthaupt Block at rates well below the landlord’s stated financial position.
Fast Growth Meets the Right Downtown Office for Encircle
Encircle 121 Charles Street W. Kitchener Size 6,900 SQ. FT. Quick Facts Scaling Startup Off-Market Option Services Occupier Services Fast Growth Meets the Right Downtown Office for Encircle CHALLENGE Encircle is a scaling tech company based in Communitech in downtown Kitchener that needed to relocate quickly because of significant growth and their strong desire was to remain in a “brick & beam” office environment in Kitchener’s downtown core. After completing an office needs analysis it was determined their requirement was approximately 7,000 square feet and a search was initiated to identify all viable alternatives in the area. SOLUTION After reviewing all available options and conducting a tour of the short listed properties, Encircle quickly focused on a sublease option in the Tannery. However, after submitting an Offer to Sublease the Sub-Landlord decided to take the space off the market because an existing Sub-Tenant wanted the space for expansion. Leveraging market knowledge and, more importantly, a relationship with another broker helped identify another better off-market option that was eventually leased. RESULTS Quickly identified a fully furnished, off-market option and negotiated financial and strategic terms that allowed the tenant to relocate on an accelerated basis.
Redpath Mining Builds Leverage in a Limited Market
Redpath Mining 101 Worthington E North Bay Size 10,000 SQ. FT. Quick Facts Renewal Lack of Options Services Occupier Services Renewal Services Market Research Redpath Mining Builds Leverage in a Limited Market CHALLENGE Redpath Mining, based in North Bay Ontario, is the global leader in mine shaft construction and the lease renewal for their global head office was less than two years out. The challenge in obtaining a market renewal was two-fold: first, budgeting enough time to conduct a proper renewal process in a very small office market and, secondly, finding any viable relocation alternatives that would provide leverage for the negotiation. SOLUTION In order to ensure the tenant’s renewal strategy was not adversely affected by time and in light of the limited number of relocation options in such a small market, renewal discussions with the landlord were initiated 20 months prior to the tenant’s lease expiry. This allowed CBRE to identify potential relocation alternatives based in large part on build options and this research established the basis for the renewal negotiation. RESULTS Employing the luxury of time to backstop its negotiation Redpath was able to reduce its rent by approximately 16%, obtain a market-leading inducement allowance and obtain options to terminate.
Dillon Consulting Trades Excess Space for Better Terms
Dillon Consulting 235 Yorkland Blvd. North York Size 26,000 SQ. FT. Quick Facts National Account Client Future proofing Office Space Services Market Research Workplace Strategy Renewal Services Dillon Consulting Trades Excess Space for Better Terms CHALLENGE Dillon Consulting occupied the same office space at 235 Yorkland for 15 years and had 20% more space than it required. The challenge was in helping Dillon come up with a new workplace strategy that addressed the financial concerns of senior partners and met the physical office requirements deemed necessary to attract and retain the next generation of employees. SOLUTION Assisted Dillon first with developing a new workplace strategy to meet the corporate, financial and physical needs of the company. Then, after much consultation with the client, developed a strategy to pit their existing landlord against the market to ensure Dillon obtained market-leading financial and strategic incentives. RESULTS Dillon was able to renew its lease at the same rental rate it had been paying, realize savings by giving back excess space to the landlord immediately, relocate onto new floors in the building with a tenant allowance that was 190% above what the landlord was offering, get the landlord to upgrade the building HVAC and install a fitness facility in the building and obtain options to terminate throughout the lease.
LCP Secures Better Space as the Clock Runs Down
LOCKYER CAMPBELL POSNER 30 St. Clair Ave W. Toronto Size 6,547 SQ. FT. Quick Facts High-Profile Boutique Law Firm Short Timeline Services Tenant Representation Relocation Services LCP Secures Better Space as the Clock Runs Down CHALLENGE LCP is a leading Canadian criminal law firm established in 2005 by 3 founding partners who have more than 50 years of combined experience in defending the most challenging criminal cases in Canada. The specific challenge of this assignment was dealing with a client whose client case load was so large they had not devoted enough time to their own real estate needs and their lease expiry was looming on the horizon. In addition, they were in tired space in an older building and relocation was the preferred option. SOLUTION Although the client was convinced they required more office space than they currently occupied to meet their future needs a space planner was retained to complete an independent analysis and it was determined their office requirement was approximately 1,300 square feet less than the client anticipated. In addition, the original search parameter was changed to reflect a desire to be in affordable space with subway access. Recently-vacated space at 30 St. Clair West that was not yet on the market was quickly identified as the best solution and a long term lease was executed. RESULTS The client relocated to new office location at 30 St. Clair Avenue West on a time tight frame and at rates below current market.
French Language Services Commissioner of Ontario
French Language Services Commissioner of Ontario 800 Bay St. Toronto Size 4,856 SQ. FT. Quick Facts Transparent process necessary Walking distance to Queen’s Park and Union Station Services Occupier Services Relocation Services Market Research French Language Services Commissioner of Ontario CHALLENGE The Office of the French Language Services Commissioner (FLSC) of the Province of Ontario was subleasing space from another Government office at 700 Bay Street but the office was growing and there was a desire to relocate out of its existing building. Jim Wilson’s tenant representation team was referred to the FLSC by the Commissioner of the Financial Accountability Office of the Province of Ontario. SOLUTION A Needs Analysis determined the office requirement was approximately 4,500 square feet and CBRE identified all options within walking distance of Queen’s Park. Working with our downtown office it was quickly determined that 800 Bay Street offered the best solution from geographic, qualitative and, most importantly, financial perspectives and a 10 year lease was negotiated. RESULTS Office space was leased at rates below current market with a significantly above-market tenant improvement allowance and an option to terminate the lease during the term and the FLSC was moved into its new home on time and on budget.
A Public Office Decision Made in Full View
Financial Accountability Office of Ontario 2 Bloor St. W. Toronto Size 6,056 SF Quick Facts Newly-created government officer Extremely sensitive requirement Quick occupancy Services Tenant Representation Relocation Services A Public Office Decision Made in Full View CHALLENGE The Office of the Financial Accountability Officer of the Province of Ontario was created by government statute in March 2015 to oversee Government of Ontario expenditures. Initially housed in temporary space at Queen’s Park the Office had instructions to identity and relocate into new premises within 8 months. In addition to the necessity of finding affordable office space within walking distance of Queen’s Park, the politically sensitivity of the FAO mandate necessitated the project be lead by an experienced office occupier specialist who employs a transparent, open-book process. It is for these reasons Jim Wilson was recommended to the FAO by another client of Mr. Wilson, the office of the Environmental Commissioner of the Province of Ontario. SOLUTION A Needs Analysis determined the office requirement was approximately 6,000 square feet and a detailed search identified all options within walking distance of Queen’s Park. Working with our downtown office it was quickly determined that 2 Bloor West offered the best solution from geographic, qualitative and, most importantly, financial perspectives. RESULTS Office space was leased at rates below current market with tenant inducements including a significant above-market allowance and the FAO was moved in on time and on budget.