Assumptions Fell Apart Once the Market Was Tested
Casebank Technologies 6205 Airport Rd Mississauga Size 13,400 SQ. FT. Quick Facts Office Renewal Services Occupier Services Renewal Services Assumptions Fell Apart Once the Market Was Tested CHALLENGE Casebank Technologies relocated from Brampton into 6205 Airport Road with the assistance of the Wilson team in 2007 and contacted Mr. Wilson in early 2015 when their landlord approached them about renewing well before their lease expiry in 2017. The tenant suspected the landlord was of the opinion they did not have to do a renewal at rats that reflected market because Casebank had suggested they were not interested in relocating so they asked the Wilson team to assist in determining what additional financial and strategic concessions might be available over and above the landlord’s initial proposal. SOLUTION A space needs analysis completed by the Occupier team determined the tenant could occupy fewer square feet of office space in a more efficient building so initiated an RFP from competing landlords. With this market data in hand the Wilson Team then approached the incumbent landlord to discuss renewal terms. RESULTS The client obtained an additional leasehold improvement allowance and reduced their occupancy costs by 13% over the landlords original renewal proposal.
Growth Planning Gives Bird Construction the Upper Hand
Bird Construction 5700 Explorer Dr Mississauga Size 39,000 SQ. FT. Quick Facts Lease expiry in 10 years 30% Expansion Desired Captive Tenant Services Occupier Services Lease Restructure Growth Planning Gives Bird Construction the Upper Hand CHALLENGE When Bird approached their landlord about leasing an additional 10,000 sf to accommodate a new growing division in the company they had 10 years remaining on their existing lease. Initial negotiations with the landlord did not reflect market because the landlord assumed the tenant would pay a premium rent to expand in the building. SOLUTION The Occupier team determined the expansion space did not have to be in the same building so recommended an RFP in the market. This strategy convinced the incumbent landlord to reconsider their initial financial proposal. To encourage the landlord to do a market transaction the Occupier team proposed renewing Bird’s existing lease for 30,000 square feet 10-years prior to their lease expiry and lease an additional 10,000 square feet. RESULTS In addition to expanding by 30% Bird did a ‘blend and extend’ on their lease 10-years prior to their lease expiry, leased an additional 9,416 square feet for 15 years at rates that declined over the new term, and was able to obtain market incentives not previously offered by the landlord.
M&M Food Market Unlocks Value in a Competitive Market
M&M Food Market 2240 Argentia Rd Mississauga Size 23,065 SQ. FT. Quick Facts Head Office Relocation High parking requirement Toronto-Waterloo Corridor Services Tenant Representation Relocation Services Market Research M&M Food Market Unlocks Value in a Competitive Market CHALLENGE M&M Food Market was based in Kitchener but had been purchased by owners including a venture capital group based out of Toronto and a national pension fund who wanted to grow the business and attract a new generation of employees by reinvigorating the brand. It was decided relocating to the Greater Toronto Area was the best solution and the preferred location was a former industrial building converted to flex office space that had sat vacant for 3 years – that was also owned by pension fund who also had an interest in the company. The difficulty was obtaining a market-leading financial package for a client that was owned in part by the landlord of the preferred building. SOLUTION After touring all applicable options between Highway 427 and Winston Churchill Boulevard a detailed request for proposal was run to a short list of 5 properties to establish a basis for negotiation. RESULTS The client was able to obtain inducements and achieve financial terms that set a new low watermark for Net Effective Rents (NERs) in the market that satisfied both the tenant and its ownership team.
CAS Interiors Unlocks Value in a Long-Term Office Move
C A S Interiors Inc. 2105 Matheson Blvd E Mississauga Size 7500 SQ. FT. Quick Facts Leasehold Construction Firm Services Market Research Occupier Services CAS Interiors Unlocks Value in a Long-Term Office Move CHALLENGE C A S Interiors had occupied the same premises for over 20 years and needed a larger office to accommodate its expanding team. They also wanted to secure space in a better-quality building at an affordable rate that could showcase their leasehold construction work and act as a business development tool for potential clients. SOLUTION The Office Occupier team helped C A S retain an experienced space planning firm who determined their office requirement and a comprehensive search for available properties was initiated based on unit size, building quality, parking, transit, amenities and the overall financial package. After evaluating various options C A S identified a long-term sublease at as the preferred location for their new office. RESULTS C A S Interiors successfully secured 7,500 square feet of space at 2105 Matheson Blvd E that provided an above-market financial package for space that accommodated their immediate and long-term needs. The new office location offers a modern and professional environment that aligns with the company’s brand image and fosters collaboration among team members. With its strategic location, C A S Interiors is now well-positioned to serve its clients more efficiently and able to accommodate future growth.
Pioneer Uses a Deadline to Force Better Lease Terms
Pioneer 1122 International Drive Burlington Size 20,000 SQ. FT. Quick Facts Lease Restructure Services Occupier Services Pioneer Uses a Deadline to Force Better Lease Terms CHALLENGE In the immediate aftermath of the sale of Pioneer Energy to Parkland Fuel the new owners wanted to renegotiate the terms of its remaining lease. SOLUTION The Occupier team had negotiated the original Pioneer lease and was retained again to see what if any options were available for the tenant to reduce its occupancy costs. The Occupier team had been able to obtain an option to terminate in the original lease but the window to exercise the option was only weeks away which left little time to act. RESULTS The Occupier team had only 2-weeks to develop and execute an RFP in the market and the incumbent landlord refused to participate in the hope they could ‘run out the clock’ on the tenant. However, the financial and strategic options brought to the table through the RFP convinced the tenant to exercise its option to terminate the lease and the Occupier team delivered a certified cheque to the landlord 10 minutes before the tenant’s option expired. In doing so, the Occupier team convinced the landlord Pioneer was prepared to relocate and the landlord reconsidered their position. Negotiations to restructure the tenant’s lease commenced and resulted in a significant reduction in net rent and multiple options to terminate the lease throughout the balance of the remaining lease term.
LaunchIt Ventures Secures Better Space at Below-Market Terms
LaunchIt Ventures 286 Sanford Ave N Hamilton Size 5,678 SQ. FT. Quick Facts Relocation Services Market Research Occupier Services Workplace Strategy LaunchIt Ventures Secures Better Space at Below-Market Terms CHALLENGE LaunchIt Ventures is a healthcare-focused venture company based in Hamilton, Ontario that provides support for startups through a unique model which combines funding, entrepreneurship, business acumen and a shared business services model. The company had grown out of their current facility near the downtown core and contacted the Office Occupier team for assistance because of our focus on the life sciences sector and experience in Office Occupier services. SOLUTION Our team’s experience in the Hamilton commercial real estate market enabled us to quickly identify a long-list of potential options. A short list of sites was quickly toured and it quickly became clear that one option originally discounted due to location but included for comparison purposes quickly became the preferred focus for consideration. RESULTS LaunchIt Ventures was able to significantly upgrade the quality of their office space and negotiate a longterm lease at below-market rates.
A Renewal Decision That Changed Once Numbers Were Tested
Electro-Federation Canada 180 Attwell Dr Etobicoke Size 6,996 SQ. FT. Quick Facts Office Renewal Services Renewal Services Tenant Representation A Renewal Decision That Changed Once Numbers Were Tested CHALLENGE Electro-Federation Canada had occupied space in its building for over 5 years and had 18 months remaining in their lease term. The tenant had previously approached the landlord on its own to discuss an early renewal and what if any concessions might be available from the landlord such as a reduced rent and/or an improvement allowance and was told there was little interest in entering into negotiations for an early renewal. The Wilson Team was then retained to represent the tenant’s interests and negotiate on their behalf. SOLUTION A space needs analysis completed by the Occupier team determined the tenant occupied excess office space and a formal Request for Proposals was initiated for the tenant amongst competing landlords who we knew had significant vacancy in their buildings. With this market data in hand we then approached the incumbent landlord to discuss renewal terms. RESULTS The client was able to renew prior to their lease expiry, obtained a leasehold improvement allowance reduced their occupancy costs by 16%.
Turning a Retail Vacancy Into a Better Office Solution
Niagara Community Care Access Centre 149 Hartzel Rd St. Catharines Size 24,000 SQ. FT. Quick Facts Uncooperative Landlord Services Tenant Representation Relocation Services Turning a Retail Vacancy Into a Better Office Solution CHALLENGE The Niagara Community Care Access Centre (NCCAC), a not-for-profit healthcare provider, had a lease expiring in a tertiary office market with few viable options. Accordingly, the incumbent landlord was asking very aggressive renewal rates and the tenant felt they were being held ransom by their landlord. SOLUTION The Occupier team was retained by the tenant to act on their behalf and after combing the market discovered a vacant retail plaza that could easily be converted to office space. The plaza owner, faced with continued vacancy in a soft retail market, was very open to helping make the transaction happen and a long-term lease was negotiated at rental rates that greatly improved the tenant’s bottom line in addition to providing strategic options that offered the tenant flexibility to expand, contract and/or vacate during their lease term. RESULTS The tenant relocated into more efficient space in a re-purposed building that was considerably less expensive than the renewal proposed by their former landlord and the new office not only improved the average staff commute but was also closer to retail amenities.
A Targeted Office Solution for Labforge’s Growth Stage
Labforge 103 Bauer Place Waterloo Size 1,200 SQ. FT. Quick Facts Scaling startup Unique requirement Services Occupier Services A Targeted Office Solution for Labforge’s Growth Stage CHALLENGE Based in Velocity in downtown Kitchener, labforge was a scaling tech security firm that wanted to locate a small office where they could mount cameras on the building exterior and monitor the property for client demonstration purposes. After completing an office needs analysis it was determined their requirement was approximately 1,200 square feet and a search was initiated to identify all viable alternatives in the market. SOLUTION After reviewing the market and conducting a tour, labforge focused on a sublease option in Waterloo. RESULTS The Wilson Team negotiated a short term sublease that met both the client’s budget and their accelerated occupancy schedule.
Daylight, Savings, and a Better Place to Work
Elizabeth Fry Society of Peel-Halton 44 Peel Centre Drive Brampton Size 7,300 SQ. FT. Quick Facts Not-For-Profit Organization Public Transit Critical High parking requirement Services Occupier Services Relocation Services Market Research Daylight, Savings, and a Better Place to Work CHALLENGE The Elizabeth Fry Society of Peel-Halton occupied 2 locations in Brampton and both leases were close to expiring. Their district head office had been located for 20 years in basement space that had no windows and they were paying rent considerably above market. The Society wanted to consolidate and reduce their occupancy costs and had been advised by another real estate agent their requirement was 12-14,000sf. SOLUTION An independent space needs analysis determined their actual requirement was actually closer to 7,000 square feet and options were quickly shortlisted. The Occupier teams market knowledge determined 44 Peel Centre Drive was best suited and a 10 year lease was negotiated that met all of the tenant’s requirements: lower price, free parking for staff, proximity to public transit and amenities for both staff and clients. RESULTS The client relocated from expensive basement space that had no ambient light and where staff paid for parking to bright space on the 2nd floor of an ‘A’ class building that offered free parking to staff and visitors and the organization was able to realize savings in excess of $500,000.