When thinking about leasing a commercial space for your business, it is important to know the ins and outs of the entire process. To help guide you through some key decisions, I have put together some questions that you should ask:

Should I use a broker, or should I be looking for commercial properties on my own?

You should always use a professional broker, when looking for a commercial space. They are useful, not only because they understand the market, but they work on your behalf to maximize savings and help meet your goals. Real Estate brokers, such as myself, are also up-to-date with the latest and greatest listings, to make sure you find exactly what you need. Many commercial properties are not listed on MLS (Multiple Listing Service – used to list properties for sale/lease), so using a reputable expert can open doors not typically known without one.

How long do I need for this process, from beginning to end?

The earlier you start, the better. This will give you time to see multiple properties and find the one just right for you. It will also relieve the stress of having to leave your existing commercial space on a deadline. It will keep your head clear so that you can make the best decision for your business. The more time you have to think about your space requirements, the better. You should plan for a minimum of 3 months, prior to lease expiration.

How much space do I need to lease?

If you aren’t sure how much space you will need, it is a good idea to use a space planner or an architect to determine the right amount. I use a number of architects and space planners to help visualize the optimal amount of space for you. They can also assist in defining the optimal layout of premises for your furniture and employee/department layout.

Should I measure the space myself?

It is imperative that you always verify the landlord’s square footage numbers. Experienced landlords have professional space planners to measure space and provide floor plans. It is also important to understand the difference between rentable/useable square footage. Rentable is space you pay rent on, while useable is the actual space you will be utilizing, plus “gross-up factor,” which is your share of the lobby, common hallways, stairwells, etc.

How do I choose the best location?

Possible elements you may want to think about when deciding on a new location for your business might include; access to public transportation, amenities for staff, zoning by-laws, and parking availability for employees and visiting clients. It is important that your business can operate from your desired location. Further, you should never rely on a landlord’s zoning assurances. Don’t worry – I can handle that all for you. Ensure you are comfortable that your business can operate from the desired location.

How long a term should my lease be?

There are two options when choosing a lease; a short-term lease and a long-term lease. A short-term lease gives flexibility, but will typically have higher rental rates. A long-term lease is less flexible but has lower rental rates with more incentives/inducements offered by the landlord. I can help you decide which lease option is best for your business needs.

Should I verify building systems and infrastructure?

Always ensure there is a clause that requires the landlord to verify HVAC (heating, ventilation and air conditioning), plumbing, electrical etc., prior to taking possession.

Should I have my Insurance Carrier review the lease language?

Yes! It is always a good idea to have a professional review and clarify the insurance clause in your lease to ensure reasonable costs and conditions. I work with a number of insurance professionals who can accomplish this for you.

Should I retain legal counsel?

Always. Leases are typically written by a landlord’s lawyer, so it is imperative that you have someone looking out for your best interests. I work with a number of real estate lawyers who have always had my clients’ best interests in mind.

What is the cost of using a Real Estate Brokerage? 

In the majority of cases, landlords pay the commission of the real estate brokerage – taking the cost out of your hands. Therefore, you can use the expertise and experience of a professional, such as myself, for absolutely free!

If you’re looking for your next commercial lease, please do not hesitate to call me at 416-433-6249, or email me at jeff@jeffwolfe.ca, and we can work together to find you the exact commercial space you are looking for.

Image courtesy of artur84 / FreeDigitalPhotos.net

Condominiums aren’t the only thing for sale in Toronto real estate. Honest Ed’s, the discount superstore that has been a Toronto institution for over 50 years is up for sale; and what a sale at that.

David Mirvish’s intention to sell the 1.8 hectre of land that Honest Ed’s stands on has caused city council to put a “ban” on all new stores and retail services in the area bounded by Queen Street West to the south, the Dupont Street train tracks to the north, and the properties fronting onto Bathurst Street in the east and west. As a result, developments on the hotly debated retail complex on Bathurst, just south of College, have been stopped.

On June 18, Councilor Mike Layton of Ward 19 (Trinity–Spadina) submitted the “Bathurst Street – Interim Control – Final Report” to city hall, which was seconded by Councilor Adam Vaughn of Ward 20 (Trinity-Spadina). The report housed the recommendations to halt all development of retail and service stores in the area, (as detailed above) for one year.

The ban, referred to as a one-year moratorium, is not intended to target the already proposed RioCan complex, south of Honest Ed’s, or its first tentative tenant, Walmart, Layton says. The purpose of the year-long ban is to allow a study of “…bylaw changes, changes to the official plan and heritage protections that may benefit the area”.

The 1.8 hectre of land houses more than a dozen small businesses which will have to move locations or close when the sale is made. The Mirvish Village was created in the 1960s, when Mirvish Sr. began renting the area’s old Victorian houses, transforming the area into a stretch of art galleries, boutiques, bookstores and restaurants.

Mirvish has awarded a three-year transition period for the sale, “…allowing owners time to find new properties”. This is an exciting time for these businesses, as they now have the option to enlarge their space and grow their business.

The discussion over selling the land has been going on for years. David Mirvish has denied confirming the 100 million dollar asking price although it seems quite appropriate. “You don’t find this much land in the center of the city, anywhere,” Mirvish said. He is also hoping this gives someone the freedom to ‘re-imagine’ what this corner can signify for the community, and Toronto at large. Further, he hopes to see a “…development mixing retail and residential units”, as well as community input into the design of the land.

The decision to sell now is mainly due to David’s desire to focus on his King St. West properties. Frank Gehry, the Toronto-born architect, responsible for the new look of the Art Gallery of Ontario among others, is partnering with Mirvish Jr. to redevelop a

block and a half on the north side of King St. between John and the Royal Alexandra Theater. The century old warehouses and Princess of Wales Theater, which is currently owned by Mirvish, would be replaced with three towers ranging from 83 floors to 87 floors. The towers would sit atop a glass podium Gehry refers to as the ‘cloud’, which would hold a new gallery housing some of the expansive Mirvish art collection as well as a satellite OCAD facility.

The sale and redevelopment of the land where Honest Ed’s now sits will impact the traffic in the area, aiding in the economic growth of the city. It will also increase taxes, which will be put toward improving our city, overall.

I see a positive outcome for commercial real estate in these developments. The proposed mixed-use projects, such as RioCan’s Bathurst complex and David Mirvish’s idea for the redevelopment of Honest Ed’s, could likely lead to further retail and office space in the area. Additional space will be available for lease as well as more commercial properties for sale. This is one city that is about to see some major real estate action and I am ready to help you make the most of it!

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CTV News

The Toronto Star

BlogTO

Torontoist

The Toronto Star

Toronto.ca

Mirvish and Gehry Toronto

The Toronto Star

There have been two new developments in the highly contested debate over the proposed urban format retail complex at 410-446 Bathurst St, just south of the College and Bathurst intersection.

The first development came about on June 10, when RioCan and city planners faced an angry public of Kensington Market supporters at City Hall Council Chambers. The latest development came about on July 19 when Councilor Mike Layton (Ward 19) introduced a “motion without notice” for a “Bathurst St. Interim control bylaw.”  Friday was the fourth and final day of the last council meeting until October. The motion passed 36-1 with no debate.

The June 10 meeting was held to hear the public’s opinion on the rezoning application for the complex. The public seemed to focus on the perceived negative effects the complex would have on their community. One such effect: pushing out smaller, family-run businesses with some larger chains like Walmart (who, at the moment, has a conditional agreement to lease the second-floor larger format space within the proposed complex).

The complex has been in development talks since May 2012. With the reaction that the company is still getting from the public, we are foreseeing further complications. According to a telephone poll conducted by Forum Research on June 25, 60 percent of Toronto’s population think the complex and its tenants would negatively impact Kensington’s ‘delicate ecosystem’, reports Robin Urback of the National Post.

I see it differently. There are quite a few benefits to the complex’s design.

Some include:

– The three-floor complex can accommodate up to ten smaller retailers on the ground level while the second and third would house one to two larger format retailers.

-As well, there will be 300 parking spots created below the complex, which is always needed in downtown Toronto.

RioCan is trying to be as transparent as possible. The company has created a website that will document the complex’s developments, aiming to solicit the public’s ideas. The site is interactive and a diplomatic way to try to engage the very involved Ward 20 community.

Urback also makes an appropriate comparison to when a Metro grocery store was built across the street from the St. Lawrence Market on Front St. The community’s fears for the livelihood of the Toronto institution were soothed by the obvious coexistence of the two businesses. The market served the need for the local and artisanal while Metro served the everyday: the standard after-work milk run.

This could easily be the case with Walmart and Kensington. We are excited to see this property evolve, not only since it has already received so much hype but as it will surely prove to be a positive addition to a vibrant downtown community.

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Bisnow

Trinity Group

The Toronto Star

Urban Toronto

GridTO

The Toronto Star

CTV News

On May 1st, 1400 members of the International Union of Elevator Constructors (IUEC), including those from Local 50, 90, and 96 walked off the job. This is approximately half of the 3000 certified elevator technicians in Ontario who are on the picket line.

Contract seniority was one of the major issues that lead to the strike, as unionized elevator technicians have been able to retain their seniority if and when they switched companies. The major four elevator companies involved in the talks, Kone, Otis, Schindler and ThyssenKrupp Elevator, represented by the National Elevator and Escalator Association (NEEA), would like to see this practice grandfathered or even eliminated.

Thankfully, On June 17th, according to the Ontario Labour Relations Board order, approximately 300 members of the 800 IUEC Local 50 and 90 returned to the GTA resident construction sites, ensuring at least some maintenance work was being done.

Unfortunately, construction on new developments in Toronto has been adversely affected by the strike as the process relies heavily on both exterior hoists and interior elevators to bring materials to the higher floors. Interior elevators move three to five times the speed of the outside hoist. Since the strike, the interior elevators on construction sites have not been used.

In commercial real estate, tenant/customer accessibility to businesses has been disrupted due to some elevators being out of service in various office buildings. This is because elevator maintenance work is only being completed on emergency basis and not regular service work. In addition, there are several new office towers currently under construction in the downtown sector that have been affected.

The strike has also greatly affected the every-day lives of tenants, residents and workers in office buildings and condominiums. The internal traffic within these offices and buildings has been slowed considerably as it is typical to find only one working elevator out of four, for instance.

In the meantime, building owners and managers must remember that it becomes extraordinarily important to keep in communication with local, certified contractors. This is necessary to ensure there is a mutual understanding of what elevator maintenance calls will be prioritized.

Regardless, the GTA real estate industry and the people involved, be them residents, owners, or developers, are a strong and vibrant community that are important to Ontario’s success – the strike will end, and we will all reach the sky eventually.

Leasing space at a commercial property is a smart choice for many business owners. Toronto commercial real estate is prohibitively expensive for many small business owners. Not to mention that small businesses are constantly evolving, with needs changing faster than a single property can keep up with. For these reasons, leasing is the right option for many business owners.

STEPS TO CONSIDER

Budget

For most business owners, rental costs are one of the largest expenses a business will have. Ensure you are working within a realistic budget. Your budget will determine what type of office building you are able to lease in (A, B or C class building) or what type of shopping centre you can operate your business from. Being realistic with your costs will save substantial time and effort when searching for your ideal location.

Location

The well known statement “location, location, location” can be even more true for a commercial space than it is for a home. Location for many businesses affects profit, employee morale and ability to hire staff. So narrowing down the right one is a simple matter of deciding what you are looking for and where your potential customers and employees are.

Type of Property

Your business will dictate the type of space you require. Leases may not be as big of an investment as buying, but they are still a major commitment. It takes a lot of effort and expense to move your business to a new location. Move your business too many times and your customers won’t be able to keep up. We can help you find a property that you will be happy with for a long time.

Fit of the Property

Leasing a property likely limits the changes you can make to the space. You will certainly have to do some renovations to make it a good fit for your business, but you do not want to have to completely gut a property just to make it feasible for your business. We will work with you to find a property that works for your needs.

Leasing is still a major decision. We will be with you every step of the way. Choose Jeff Wolfe and you will be in good hands from the minute we meet with you, until the day you open your business.

Selling a commercial property can be even more difficult than buying one. Commercial properties are a major investment, and no one wants their capital tied up in a property for years while it just sits on the market. The answer is to find the right commercial real estate brokerage to get you to your goals as quickly as possible without compromising your bottom line.

The real estate market in Toronto is very active, but that doesn’t always make it easy to sell a property.

What we bring to the table for our clients is a large network and experience in selling all types of commercial properties. We have positive relationships with many buyers, investors and other commercial realtors. Our large network will help your property get sold quickly.

We get calls every day from our colleagues asking about potential properties we have to sell or letting us know about one of their properties that has just come on the market. We can attract a great deal of attention to your property the moment we are given the opportunity to represent you as many properties are sold before being listed on MLS and even before that if one of our colleagues has an interested client.

We specialize in selling commercial properties, so you are in good hands. Buying and selling commercial properties is what we do day in and day out. We know the market well and have a team of experts on hand to prepare your property for sale and close the deal quickly.

We can also help arrange alternative options if your property fails to sell as quickly as you would like. We can help you arrange to lease out your property, which is a great alternative to selling. No matter what you decide to do, selling a commercial property is not something you want to try without the help of an experienced representative.

If you are trying to sell a property on your own, you are fighting an uphill battle. We can bring the expertise and the network of contacts to sell your property quickly. We would like to see you succeed and we don’t like seeing your property sit on the market any more than you do. We will work hard for you to seal the deal because our clients’ success is the key to ours. Together, we can accomplish all of your real estate investment goals.