National Real Estate Update on CBC’s Lang & O’Leary
Colliers Canada National Video 2012
Another kick butt video put together by my friends at Crucial Pictures – same group that did the video for Trend Hunter.
What do you think about creating video testimonials like these for your clients as a commercial real estate agent? In today’s world it’s more than just about the “real estate transaction” – its about accelerating everyone’s success!
Other videos :
Pixel Carve Inc.
Solutia SDO
Workplace of the Future?
The static nature of real estate combined with the dynamic nature of technology evolution is that dichotomy that we need to deal with in office design.
Technology is changing how we work. With profiles of new “Workplace of the Future” offices designed for the Burgess Group, United Way for Southeastern Michigan and its own location in Washington, DC, SmithGroupJJR explains that it’s open and team-based, giving a new balance between “I” spaces and “We” spaces. Importantly, organizations that adopt are finding it is fundamental to their future, allowing happier employees, reduced real estate costs and competitive advantage.
To search for your new office space in Toronto try OfficeZilla!
Lease Audit – Grossing Up Operating Expenses
In the operating expense provisions of an office lease you may come across wording that allows the landlord to “gross up operating costs which vary with the use and occupancy of the rentable premises in the Centre as if the property were 97% occupied and operational.”
These costs are generally cleaning, waste removal, utilities and management fees if based on a % of operating costs. Leases allow these costs to be grossed up to a range of 95% to 100% occupancy.
On the surface, allowing the landlord to charge for more expense than they incur seems absurd. However, the concept is fair to the landlord – yes, you read that right – and fair to the tenant.
An extreme examplele to illullullustrate the point:
Assume there are two tenants in a 100,000 sq. ft. office building, Tenant A and Tenant B, who occupy 50% of the space each. The cleaning costs are $1 per sq. ft. per annum, or $100,000. Cleaning contracts allow vacancy credits to be given to the landlord if tenant(s) vacate the premises.
Now let’s say Tenant B vacates the premises for a full year, reducing cleaning costs to $50,000. Without a gross up, Tenant A would now pay 50% of $50,000, equalling $25,000, even though they are responsible for 100% of the cost. The landlord would be out of pocket $25,000. Grossing up the cleaning expense to 100% allows the landlord to recover all of its costs.
Lost in translalation
Where this concept often breaks down is in the calculations used by landlord administrative staff. We have seen situations where incorrect calculations have resulted in tenants paying more on those variable expense items than if the Centre were 100% occupied.
For example, occupancy has no bearing on labour or utilities for the lobby, elevators, outside areas, or other common areas. Even vacant leaseable premises require a minimum of heat in the winter.
A Colliers audit on a 7,000 s.f. office space in Ottawa netted a $32,000 recovery for our client. The landlord had applied gross up calculations to the utilities on vacant space. However, they had continued to cool, heat and light the vacant premises as though they were fully occupied in order to make the marketing and showing of the space more appealing.
Finally, vacant space rarely remains so for a full year and appropriate calculations are required to ensure the gross up is applied only to the time the space was vacant.
REMEDY
Have the ‘right to audit’ written into the lease agreement in order to ensure that the grossing up is done correctly. Clear, concise lease language such as the following is also essential:
“The landlord is entitled to gross up those items of operating costs which vary with the use and occupancy of the rentable premises in the Centre as if the Centre were (% rate to be negotiated) occupied and operational. For greater certainty the variable costs are cleaning and utilities. In no event shall the tenant’s proportionate share of the variable expenses be greater that would be payable if the property had been fully rented.”
For Additional Information Contact:
Frank Iannarilli
Director, Lease Audit
416.620-2876
frank.iannarilli@colliers.com
Sid Lee Toronto Offices
Solutia SDO Head Office, Toronto – Video Testimonial
Another great deal done with http://solutia.ca/ – Get more out of your agent and your space!
Solutia SDO is an independent management consulting firm, owned and operated by seasoned professionals. We provide our clients with the skills, expertise and services offered by large consulting firms, but with one major difference — you can expect a better return on your investment.
What’s your commercial real estate agent ever done for you?
Apple To Open flagship store in Toronto at 1 Bloor West?
Stollery’s at the southwest corner of Yonge and Bloor streets
If this is true it would really shake up the market. How much would Apple pay for such an amazing flagship store?
Could it end up looking like the store in New York below?
Lee’s Palace artist does mural in BizMedia’s office space
If you haven’t seen The BizMedia’s office space at 119 Spadina Avenue you should check it out. They’ve been doing some really creative things. Check out this video of how they decided to decorate their office space.
Videos as Recommendations – What do you think?
“My purpose in life is to change the face of the Internet. Make it easier to use, more interactive and dramatically more beautiful.”
Ryan Priest – CCO, Pixelcarve Inc.
Our passion is to create engaging and complete interactive experiences that intimately connect people with brands in unique and memorable ways. Our commitment is to grow your business through innovation, relevance and beauty, because we believe these are the cornerstones of unforgettable experiences that attract and retain clients.
Increased Workstation Control Brings Higher Job Satisfaction, Less Stress
Original Post – By: Stephen Searer
Most people that have worked in an office would probably agree with a recent study (pdf) that was undertaken “to examine the relationship between workstation features … and the comfort and performance [of employees]“. They found:
- The greater control employees have over the adjustment of interior workstation features, the lower the stress they experience.
- The more effectively the interior workstation layout supports the work process, the greater the job satisfaction.
Workspace Control
It comes as little surprise that employees would experience less workspace stress when they have more control over their workspace. When thinking through many offices that I’ve seen, employers have often chosen less-expensive models of furniture that often come with less customizability. The study found that “task chair, lighting, display shelves, storage, keyboard and mouse trays, and monitor arms” are all important to employees.
Workspace Effectiveness
While it might seem that all employees need is a desk, a chair, a computer, and access to office supplies to be effective, the study found that a workstation that is tailored to the specific job is the most effective and improves work satisfaction. Workstation variables “such as amount of space, arrangement of furniture/equipment, storage capacity and accessibility to reference materials influence the quality of the work process, which in turn affects job satisfaction”.
Takeaways
- Think through employee needs when designing workstations, but revisit after several months and ask employees if they have any additional needs.
- Don’t forget that all employees are not average human size and might have different needs from one another.
- If you’re going to spend $300 on each chair, consider offering several options at that price point.
- Many furniture manufacturers now offer adjustable height desks.
- Employees will most likely have a better impression of their company management if their work needs are considered.
- If possible, produce data regarding the changes made to workstations to prove effectiveness. But, don’t forget that some things may simply have perceived value and add to employee satisfaction.
