Case Study – Automotive Facility, Mississauga, Ontario
All businesses grow until they are constrained by their limiting factors. When it comes to automotive and trucking repair shops, they require multiple physical locations close to their customers, specialized labour, building functionality, and outside storage… that common limit to growth is often real estate. The only problem is that the right real estate can be difficult to find and expensive to secure. And this is only becoming more and more challenging in the Greater Toronto Area.
Further, for a business that may have several service lines, it is imperative to have specialized shops, additional storage and excess land to help provide a buffer when business picks up and your shops are crowded.
One strategy, which we will reveal later on, helped our Client not only acquire a property to expand its service lines and reach more customers, but they now have the ability to easily grow without overpaying or rushing to purchase another building.
In this case study, you’ll be able to see exactly how we helped this Private Business expand its strategic footprint and operations so that they could enter a new market, create additional service lines, and reach more of their customers.
Team Toronto was tasked with finding additional space for a growing business, that was both close to customers and that would serve as the main shop for an additional service line. A key desire of the Owners was to not only expand the business itself but to acquire as many strategic locations as possible to build long-term wealth for their family.
To that end, we looked for top-quality product that could fulfill all of these buying criteria.
- Approximately 20,000 SF total
- Coveted Zoning for Automotive and Auto-Body Repair
- Oversized Drive-In Doors
- Dual Entrances
- Outside Storage
As per our process, we assessed our Client’s needs to understand their situation and then looked on- and off-the-market for opportunities. We put together a list of candidates and then worked closely with our Client to ensure they found the right property. In touring properties together and developing a close relationship, we came up with a custom solution that would secure the long-term growth of their operations with reduced risk.
As a result of our high-touch and intimate work with our Client, we found a number of ideal properties and identified the top candidate. We submitted an offer and were able to structure and negotiate a deal that was satisfactory to both Parties.
Given the fact that it is difficult to predict how fast the business would grow, we advised our Client to acquire more space than they would need, while having the ability to produce income from any unused space, thus, allowing them to purchase a larger property and create an operational buffer with little additional risk. This way, our Client could maintain flexibility and grow as they need to over the coming years.
Bottom Line: Our Client acquired a property that would house an additional service line for their business, as well as providing excess room for growth or rental income, should they decide not to grow.
In conclusion, if you are an Owner-Occupier or private business looking to expand your strategic footprint and plant your stake in a new territory to tap into different markets, then you’ll want to be aware of every possible option. Brokers who specialize in local territories and who have strong relationships with other owners and landlords can provide this intel for you.
If that sounds like you, then please give us a call and we would be happy to discuss your unique situation.
Kevin Irandoust is a Senior Associate at 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.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 firstname.lastname@example.org.