Case Study – Industrial Facility, Mississauga, Ontario
Despite the fact that the Greater Toronto Industrial Market is at record-lows in terms of vacancies, Landlords still need assistance when it comes to leasing out their space. As the clear preference is to do it with the best possible Tenants, at the highest rates, and as quickly as possible.
Everything comes down to opportunity cost, and time spent looking for the right User means more risk, higher costs, and less operating income. Rushing to fill space, however, means money left on the table through less optimal leases, lower rates, or concessions.
Being able to get a deal done with speed and efficiency, regardless of the state of the market, is what an experienced team of commercial real estate professionals can do for your portfolio of investments.
Team Toronto was tasked by a Landlord with attracting quality covenant tenants at market rates while also leasing the spaces as soon as possible to limit the carrying cost of vacant units.
The building itself contained some challenging features, such as a lower clear height and tight shipping apron; things that we knew may create a roadblock when speaking or negotiating with potential occupiers who may have particular specifications.
Given the unique nature of the property, we needed to ensure our marketing program gave proper exposure of the availabilities to the neighbourhood and wider market, as well as identifying the users who could benefit the most.
- Approximately 15,000 SF total
- Well-Located Proximal to Major Transportation Routes
- 14’ Clear
- Employment Zoning
- Truck Level Doors
Given the lack of product and low vacancies in the market, we knew there would be a surplus of Users looking on the market.
As part of our proprietary process, we positioned the units for a wide range of uses in order to maximize this pool of prospects and the rates they would be willing to pay. With both outbound and inbound responses, we were able to generate demand and bring interested Parties to the table.
We were able to quickly lease out all the spaces at rates that exceeded expectations of the Landlord while securing new, quality locations for the Tenants.
Bottom Line: We were able to find and secure quality tenants at great rates, which minimized vacancy costs to the Landlord.
Overall, securing these leases allowed all Parties involved to reduce the risk and uncertainty they faced before we brought them together, and gave them what they needed to move forward in their day-to-day businesses.
If you are looking to occupy or acquire space in the Toronto-West region, please give us a call for a complimentary 360-degree situation analysis or to discuss any off-market opportunities.
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.