Case Study – Warehousing Facility, Vaughan, Ontario
Every business will go through several periods of adversity in its lifetime; problems that may challenge the company’s very existence. Whether it be competition, changing laws and policies, emerging trends, or the commoditization of your product or service.
As owners and operators who manage the day-to-day operations of either a single or multiple warehouse locations, there are enough items on your priority list to keep you working 24/7, and many people do.
However, the last thing you would want is to be tasked with relocating your entire operation in a couple of months or have to give in to substantial rental rate increases (something you may or may not be able to afford). Either way, to resolve this crisis scenario, you should leverage the expert guidance of a commercial real estate broker.
Given the rapidly growing industrial market in the Greater Toronto Area, many users and occupiers of commercial space will be in this very situation when it comes time to renew their lease or expand their businesses. That’s because rental rates have largely remained stable over the past 25 years… but no longer. Over the past 5 years, they’ve sharply increased due to high demand and an inability for suppliers to keep up. If you don’t start considering your options today, you may be looking to pay double your current rate…
In this case study, you’ll be able to see exactly how we found space for a User that was faced with a steep increase at lease renewal, and who used that as an opportunity to upgrade their footprint and find a new, long-term home at an affordable rate.
The Challenge
Team Toronto was tasked with finding new space for a User in under sixty (60) days; including completing a full 360-degree analysis for viable options, contacting prospective landlords, negotiating terms, and relocating their current operations.
Achieving all of these items would be a great achievement under normal circumstances; nevermind the pressure to maintain continuity in the Client’s business.
Features:
- Brand New Industrial Distribution Facility
- Approximately 20,000 SF total
- Well-Located Proximal to Major Transportation Routes
- 32’ Clear
- Truck Level and Drive-In Doors
- 10% Office Buildout
Transaction
With the obvious time and space constraints, we went to work, making calls to our network. After analyzing all available options, we presented a survey of preliminary options to our Client; many of which they wouldn’t have considered had they not met with us.
Results
Even with the incredibly tight market, we were able to identify a number of options as a result of running through our process.
We negotiated and secured space in a brand-new facility that would finish construction and be ready for move-in exactly when they needed it. In addition, we provided the Client with guidance on outfitting and customizing their new home to meet their operational requirements.
Bottom Line: We were able to secure a quality, well-located space for our Client in under 60 days, and at an affordable rate. Most importantly, their business didn’t slow down or skip a beat, allowing them to provide continued service to their clients.
In conclusion, if you are a User or Owner-Occupier looking to find additional space in a time when vacancy rates are at historic lows (and rental rates continue to rise), then you may want to begin the process as early as possible. Given the state of the market, most opportunities can only be sourced by brokers with a deep network and access to local intel.
And so, if you’ve been looking but haven’t found anything to your satisfaction, then please give us a call and we would be happy to discuss your needs.
Kevin Irandoust is a Senior Associate Lee & Associates Toronto, specializing in providing customized real estate solutions to investors and occupiers in the Greater Toronto Area through the acquisition, disposition, and leasing of industrial properties.
ABOUT LEE & ASSOCIATES
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada.
Lee & Associates provides superior market intelligence in office, industrial, retail, investment, and appraisal to meet the specialized needs of our clients. For the latest news from Lee & Associates, visit leetoronto.wpengine.com.
To get clarity and direction when looking for space or to receive an opportunity analysis for your real estate needs, please contact Kevin at 416.628.8183 or email at kevinirandoust@lee-associates.com.