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

Volunteer Your Office Space and Advertise for free on OfficeSearchToronto.com

Do you have a cool office space or work for a cool company you want to show off? I’m looking for groups that want to show off their office space like Microsoft did here… only much shorter. Don’t be shy!

How Realtors Can Help!

Great article on why you should hire a commercial real estate agent.
http://howcommercialrealtorshelp.ca

In a 2007 national survey of business professionals involved in real estate, 92 per cent of all respondents said they would describe the services of a commercial REALTOR® for a transaction as highly useful, or useful.

* 80% of all respondents said using the services of a commercial REALTOR® would save them time;
* 80% of respondents said using a commercial REALTOR® would help avoid hassles and complications;
* 86% of all respondents said using a commercial REALTOR® means market knowledge

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Specialization in Real Estate

I disagree with agents that think they can be the jack of all trades. They are jack of “something” all right. Yes, you lose out on some commissions by turning away or referring opportunities but if I were a tenant looking for commercial real estate advice I would want the best agent working on my behalf. As a tenant or landlord, do some due diligence and hire the agent that actively works your market and not a friend of a friend.

To be a specialist and provide exceptional service you need to focus on a specific type of transaction (office leasing in my case) and engross yourself in that market. It’s even better if the agent specializes in working with tenants in your business vertical. I specifically track “shadow” options and shared space that haven’t come to market yet. I am consistently updating my database, speaking with tenants and doing research so I have the leg up on my competition. Unless your market is very small you need a lot of focus time. By referring requirements outside of my specialty I generate the time I need to better my market knowledge and use it to service my clients.

I recommend you interview a few agents and work with the one you feel will best service your needs!
Give me a shot – Chris Fyvie – 416-992-9869 or E-mail Me!

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CLICK HERE FOR AVAILABLE OFFICE SPACE

Commercial Real Estate Free rent vs Fixturing period

I recently had a offer change from a landlords construction turnkey solution (landlord builds the tenants space at their sole cost) to an “as is / lowest rent” scenario where the tenant is prepared to do the work. Two months of gross free rent was offered in compensation for the switch. What the landlord failed to mention is those free months were also part of the construction timing and not necessarily free time to operate their business. Watch how the fixturing and early occupancy clause are worded so that if you are doing your own construction you are compensated appropriately.

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Other Available Office Space

Commercial Real Estate Terms – Toronto Canada

Here are some of the key terms, in alphabetical order, that you should be familiar with when looking for Office space in Toronto.

Additional Rent – Any amounts due under a lease that are in addition to base rent. Most common form is operating expense increases.

Agency – Any relationship in which one party (agent) acts for or represents another (principal) under the authority of the latter. Agency involving real property should be in writing, such as listings, trusts, powers of attorney, etc.

Allowance – A set dollar amount provided by the Landlord under a lease to be used by the Tenant for a specific purpose. Examples include allowances for tenant improvements, moving expenses design fees, etc. If the expense exceeds the allowance amount, such excess is the Tenant’s responsibility. If the expense is less than the allowance, the savings are retained by the Landlord unless their agreement specifies otherwise.

Amortization – Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. May also be used in a lease where the landlord incurs costs for additional tenant improvements which are effectively treated as a debt and repaid by tenant over the term of the lease.

Base Rent – A specific amount used either as a minimum rent in a lease (retail) which uses a percentage of sales or overage for additional rent or sets a base onto which is added expenses and taxes in a net lease or increases in those items in a fully serviced lease.

Base Year – The 12 month period upon which a direct expense escalation of rent is based. Typically the calendar year the lease commences.

Commencement Date – The date on which a lease begins. This is typically but not always the day on which the tenant takes possession of the leased space, which usually occurs upon substantial completion of the tenant improvements. (See occupancy Date).

Class – Class is usually used in conjuction with an office property and refers to the quality of property. Class definitions fall with the following guidelines. Class A+: Landmark quality, highrise building with prime central business district locatation (the best of the Class A buildings).

Class A: Generally 100,000 sf or larger (five or more floors), concrete and steel construction, built since 1980, business/support amenities, strong identifiable location/access.

Class B: Renovated and in good locations. Newer building are smaller in size, wood frame construction, and/or in non-prime location.

Class C: Older, unrenovated of any size in average to fair condition.

Common Area – Common area is the area used in common by the tenants of an office building. Common area includes building and elevator lobbies, restrooms and the corridor leading from an elevator lobby to a tenant space.

Free Rent – A concession granted by a landlord to a tenant whereby the tenant is excused from paying rent for a stated period during the lease term.

HVAC – Heating, Ventilation, Air Conditioning. A general term encompassing any system designed to heat and cool a building in its entirety, as opposed to a space heater.

Premises – Typically the entire rentable area leased by lessee. Sometimes used to designate solely the useable area leased by lessee, i.e. that for which the lessee has exclusive occupancy as opposed to the common areas.

Rentable Area – The (square footage) for which rent can be charged. Generally it is the gross area of the full floor less the area of all vertical penetrations (elevator shafts, stairwells, mechanical shafts etc.) Rentable area can be measured in many ways, but the most common measurement for office buildings is according to BOMA standards.

Space Planning – Term is often loosely used. Most often it is the planning of the layout of the interior space of a building to meet the needs of the user. Can also include detailed interior design and preparation of construction drawings. Space planning and interior design only need not be licensed architects. Preparation of construction drawings for permit have to be prepared by architects licensed in the jurisdiction.

Tenant Improvements (TI’s) – Improvements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and be paid for by the landlord, tenant or part by each.

Turnkey – Referring to an owner making a property ready for a tenant to begin business by having the tenant furnish only furniture, phone and inventory, if any. Turnkey tenant improvements are provided at the landlord’s expense according to plans and specifications previously agreed upon by the parties. Unlike an allowance where the tenant pays for costs in excess of the allowance amount, the landlord bears the risk of construction in a turnkey situation.

Here are some others.

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Repeat Clients in Commercial Real Estate

I’m currently working on a third transaction with a client, and man, it is a pleasure.  Why?  He’s using my expertise, actually listens and isn’t negotiating with me (we’re working as a team to get the best deal)!  He started at 500 sf, then took 1500 sf, we’re downsizing a bit to save money – back to 1200 sf but he has a project that may require space for 40+ people in 2010.  Now that’s growth!

My advice for anyone out there that is or will be looking for office space, pick your horse (broker) wisely.  Work with one agent, someone you can trust that you know is going to service your requirement.  It’s even better if the agent specializes in your business sector (for me that’s tech and web based companies).  I work hard for all my clients but for this one I feel like putting that extra $0.25 psf savings into it.

Call me at 416-992-9869 or E-mail Me!

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Office Space Deals Toronto – Commercial Real Estate

Here are some of the best Commercial Real Estate Office Leasing deals across Toronto for the month of April 2009.

OfficeSearchToronto.com tracks available office space across the GTA. Would you like a survey or availability report in Toronto? Call us at 416-992-9869 or E-mail Me!.

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Commercial Real Estate News Toronto – March 2009

Too Much Doom and Gloom about Downtown Toronto? – smithcompany.ca – At the peak of the meltdown in the commercial office leasing markets in Canada in the 1990’s, the overall vacancy rate in Downtown Toronto was a staggering 18%. How bad do things have to get in order to reach the level over the next 4 to 5 years? Currently there are 5.4 million sf of available space in the existing inventory in Downtown Toronto, with an available rate of 8.3%. An additional 4.8 million sf of space is currently under construction, with 1.5 million sf, or that space currently available for lease.
Smith Company News Release, Mar 02, 2009

U.S. Business Owners Buy Commercial Real Estate – With interest rates now at historically low levels and the United States many business owners have been considering the purchase of commercial real estate for their business locations. The benefits and drawbacks to commercial real estate ownership vary from business owner to business owner but potential buyers should educate themselves about the obvious and sometimes hidden benefits to the ownership of a commercial property. Below are some of the major benefits to ownership as opposed to leasing a commercial space.
BiggerPockets.com, Mar 03, 2009

Sublease space climbs in Toronto, Vancouver and Calgary – If the sublease market is the canary in the coal mine for gauging the health of commercial office space, then in Vancouver and Calgary, the bird is flopping around on the bottom of the cage and, in Toronto, it has started to breathe hard. In Vancouver in the fourth quarter alone, sublease space available in the central core leaped to 417,000 square feet from 176,000.
Globe and Mail, Mar 10, 2009

Allied Properties REIT Year-End Results for 2008 – alliedpropertiesreit.com – AP.UN-T – Allied Properties REIT today announced results for the fourth quarter and year ended December 31, 2008. Allied completed $152 million in acquisitions in 2008, bringing its portfolio to 81 predominantly Class I office properties with 5.6 million square feet of leasable area. As in prior years, Allied’s portfolio expansion was part of a focused consolidation strategy.
SOA World Magazine, Mar 10, 2009

Lunch with Dr. Sherry Cooper: Global Economic Update 2009 – torontocrew.org – Toronto Commercial Real Estate Women is pleased to welcome back Dr. Sherry Cooper, Executive Vice President, Global Economic Strategist, BMO Financial Group and Chief Economist, BMO Capital Markets. Over lunch, Dr. Cooper will simplify the complex global economic trends affecting commercial real estate today. The event is scheduled for Thursday, April 2, 2009. Download the Event Notice linked below for more information and to register.
Event info and registration form, Mar 12, 2009

Seeking tenants in a recession for new Toronto tower – brookfieldproperties.com – BPO-T – When the Bay Adelaide Centre is completed this summer, it will be the first major skyscraper to join Toronto’s financial district in more than a decade. But it will also be seeking tenants in the midst of a severe economic downturn. The 1.1 million square foot tower, the first of three planned by Brookfield Properties, will enter a market slowed by a credit crunch.
Toronto Star, Mar 20, 2009

Colliers 2009 industrial forecast for key Canadian markets – colliers.com – Industrial markets in Canada have performed well during recent years, with stable vacancy rates and an average annual rental rate growth of 7 percent over the past five years. Speculative building is a small component of new supply and this has maintained an environment of tight availablity, with national vacancy rates fluctuating within a tight band of 4 to 5 percent during the past 5 years. Tight credit conditions and lenders? aversion to risk will also act to promote sustained low vacancy rates.
Colliers International Report, Mar 30, 2009

Signs of life in real estate – On a day when private real estate investors faced a serious case of sticker shock, publicly traded REITs showed they continue to enjoy investor support. Two private equity funds bought the John Hancock Tower in a deal that valued the 60-storey building at $661-million (U.S.), or 49-per-cent less that the $1.3-billion that the fund selling the building paid for it in December, 2006.
Globe and Mail, Apr 01, 2009

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The Truth about Commercial Real Estate – Toronto

I was recently at the PodCamp Toronto conference at Ryerson University. Here are some of my take aways.

1) Residential real estate agents get it, however, commercial real estate agents are greatly under represented or should I say, commercial agents greatly under utilize the internet / blogs / social media.

2) You don’t need a full blown PR campaign to get big quick on the web – a niche market can do wonders for traffic and reputation. I feel a commercial real estate site, specifically in Toronto, is a specific enough niche to get big quick.  There just aren’t a lot of Toronto commercial agents using the web properly and I hope it stays that way.

3) Small business owners and bloggers do not understand the value add a commercial real estate agent brings to the table to help you find new office space.  They just think it costs them money – I laugh.

4) Most people tend to treat the internet as gospel and this is far from the truth.  In fact, most of the website I compete with are far out of date but people keep going back because of the ease of search. This is something I need to work on for my site instead of posting so many brokers letters on available commercial real estate.

5) Most new companies don’t realize the time, headache and energy they will save by simply picking up the phone and dealing with an exclusive agent working on their behalf.  You’ll quickly find this out if you try and do your own research… but feel free to call after you’ve tried to deal with 10 aggressive agents at once.

6) Tenants don’t realize they are NOT saving money searching for space on their own. Fees/commissions in commercial real estate are already built into the deal.  Landlords look at tenants that are not represented by a broker as a lot of work but a great opportunity to make money because they don’t really know the market. Don’t forget, the Landlords are in business to make money too, why not squeeze an uninformed tenant when you can? eg. Do you know how much free rent / construction allowance you should ask for based on a 3 year transaction?

7) Most people see commercial real estate agents as slimy sales guys. I wish my industry wasn’t branded that way. There ARE agents out there that will respect your time that are not looking for the quick deal or to try to sell you on anything.  I look at commercial real estate as a relationship business, not as sales!

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