CLIENT PROFILE

Arup founded in 1946, Arup is an independent firm of designers, planners, engineers, consultants and technical specialists offering a broad range of professional enginering services.

Arup brings together broad-minded individuals from a wide range of disciplines and encourages them to look beyond the constraints of their own sspecialties. This unconventional approach to design springs in part from Arup’s ownership structure. The firm is owned in trust on behalf of its staff. The result is an independence of spirit that is reflected in the firm’s workand its dedicated pursuit of technical excellence.

THE CHALLENGE

REAL FACILITIES’ RESPONSE

After an extensive review of Arup’s short- and long-term needs, Real Facilities developed multiple strategies to marry Arup’s real estate to its corporate and business plan objectives. Real Facilities engaged in discussions with Arup’s existing landlord to determine what opportunities might exist within the landlord’s portfolio that would allow them to relocate immediately and terminate the existing obligation. Real Facilities also sourced the market for both short-term “band-aid” solutions, as well as long-term solutions that could potentially accommodate a phased occupancy. The key would therefore be to find a facility that would allow Arup to grow into it over a two-year period, at which point Arup could relocate its existing operations into the new facility.

THE SOLUTION

After a lengthy search process, Real Facilities uncovered the perfect solution at the epicentre of Arup’s target location (the corner of Yonge Street & Bloor Street). Real Facilities succesfully negotiated a long-term sublease (8.5 years) from Citco Canada at 2 Bloor St E., with provisions for a 50% gross rent-free period during the first 12 months, and a 25% gross rent-free period over the next 6 months. A full rent obligation was set to begin after 18 months. Notwithstanding this rent structure, Arup was permitted to fit out and occupy 100% of the premesis from day one. This structure mitigated any duplicated rent obligations between its two locations for unoccupied space, while still providing Arup with the opportunity to sublease its existing facilities in advance of their natural expiry, which Real Facilities was successful in achieving with an 80% recovery on its remaining obligation.

Further, Arup engaged Real Facilities Project Management + Design at the beginning of the real estate process to evaluate is space needs, evaluate alternatives under consideration and design, and oversee the implementation of the fit out of its new LEED certified premises.

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CLIENT PROFILE

ITW Construction Products, a wholly owned subsidiary of Illinois Tool Works, Inc. (“ITW”), is ranked among Fortune magazine's Top 200 and is renowned for quality, service and technological excellence. Founded in 1912, today ITW is a $10 billion multi-national manufacturer of highly engineered components and industrial systems. The company consists of 625 decentralized operations in 44 countries and employs more than 47,500 people.

THE CHALLENGE

Around the time its lease was to expire, it appeared that ITW was a captive tenant. This perception was fuelled by the fact that ITW occupied two other facilities (one owned, one leased) on the same street as the one about to expire. The situation was exacerbated by a requirement that its warehousing operation was to be in close proximity to these facilities.

REAL FACILITIES’ RESPONSE

Real Facilities prepared a detailed analysis of market rents within the immediate area to build a negotiation platform with the existing landlord. Real Facilities also sourced relocation alternatives in the immediate area to establish the best alternative should renewal prove problematic. The key was twofold: ensure their landlord knew they had credible alternatives and establish comparable rents throughout the local market that could be used in arbitration discussions should the need arise.

THE SOLUTION

The process worked. Real Facilities eliminated any notion of captive tenancy, successfully secured a five-year extension and negotiated a 13 percent reduction in net rents on behalf of ITW.

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CLIENT PROFILE

A market specialist in importing and exporting dry and canned food products, Keele Warehousing and Logistics (Keele) offers a variety of warehousing services. Keele also offers transportation services through its transportation partners.

Its experience has allowed Keele to build excellent relationships with Agriculture Canada, Department of Fisheries and local Health Protection Branch.

THE CHALLENGE

Looking to take advantage of its facility’s vertical capacity, Keele engaged Real Facilities to locate premises which would reduce its overall area or “footprint” by raising its ceiling and maintaining, or even increasing, storage capacity.

REAL FACILITIES’ RESPONSE

Real Facilities performed a targeted search of spaces that provided large bays containing ceiling heights of no less than 28 feet. Recognizing that buildings of this calibre typically demand a premium for their additional efficiency, Real Facilities limited its short list to only those alternatives that could provide rental savings over the existing facilities. They then created a bidding process between the short-listed landlords in order to negotiate the agreement that would best suit Keele.

THE SOLUTION

Real Facilities successfully negotiated a lease on a building that provides the same storage capacity as the former facility. The new space has less floor area, higher ceiling heights and a lower rent.

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CLIENT PROFILE

The LCBO is the largest retailer of beverage alcohol in the world. It buys wine, spirits, and beer from more than 60 countries around the globe. More than 22,000 products are available to Ontario consumers through stores, special-order programs and catalogues.

The LCBO is a provincial government enterprise employing some 7,000 people, including part-time workers, with more than 600 stores across Ontario supplied by five regional distribution centres.

THE CHALLENGE

Real Facilities negotiated an agreement back in 2003 for the LCBO to lease office space that was not set to expire until June 2013. Real Facilities had negotiated a number of favourable rights on behalf of the LCBO for the initial 10-year deal, Those rights included expansion rights, including rights of first refusal and rights of first offer, which allowed the LCBO to expand as required throughout the term of the lease. A key clause negotiated for the LCBO involved two termination rights. In early 2009, the LCBO had no intention of relocating from their current premises and had no specific need for additional office space. However, the LCBO was about to incur a rent increase for the final three years of their lease when Real Facilities stepped in and offered an alternative.

REAL FACILITIES’ RESPONSE

Real Facilities initiated lease negotiation discussions with the LCBO’s landlord and used the LCBO’s strong covenant along with the deteriorating market conditions and selective competing market information to gauge the landlord’s interest in securing the LCBO’s future tenancy at reduced l rates. The challenge was to successfully leverage the negotiated victories won in the initial lease negotiation back in 2003 and renegotiate a better financial deal for the LCBO for the future.

THE SOLUTION

Real Facilities successfully negotiated a material reduction in rent that provided immediate operational savings and reduced rent throughout the remaining four years of the LCBO’s initial lease. Real Facilities also secured additional tenure for the LCBO for the next three years at rents that were below current market rates, while maintaining flexibility and expansion capability. The deal negotiated by Real Facilities satisfied both the LCBO’s short term requirements and long-term objectives.

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CLIENT PROFILE

National Logistics Services (NLS) is Canada’s leading fashion logistics provider, delivering service to the retail fashion industry since 1967. NLS offers a full range of services including: Crossdock, fulfillment & replenishment, kitting, warehousing, DC by-pass, reverse logistics/recall management, and freight management as well as automation and a technical infrastructure for optimum through-put and speed-to-market. NLS’ facilities are strategically located in both Toronto, ON and Vancouver, BC.

THE CHALLENGE

Experiencing unanticipated growth, NLS engaged the services of Real Facilities to assist in securing a larger facility within its strategically identified market. The key challenge would be meeting NLS’ extremely tight time requirements or otherwise risk delays in product delivery and breach of contractural obligations with its distributors.

REAL FACILITIES’ RESPONSE

In response to NLS’ tight timing requirements, Real Facilities immediately put together a critical path to ensure the necessary due diligence and process would be adhered to. They conducted a targeted search of vacant premises, focusing on buildings that had been on the market for a long time, thereby strengthening NLS’s bargaining position.

THE SOLUTION

Real Facilities identified a landlord eager to lease its building and generate income and negotiated rental rates that are well below market. Given the building’s extended vacancy, NLS was able to move into the facility without any delay of its primary operations and maintained its dependable reputation with its customers.

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CLIENT PROFILE

Nexcycle Plastics Inc, (NPI) is a plastic recycling company supplying polyolefins and specialty polymers to the plastics industry. In addition to its products, Nexcycle also provides a host of related services, from custom grinding to dandifying, blending and palletizing post-industrial plastics.

THE CHALLENGE

Nexcycle asked Real Facilities to maximize the value of its three facilities, which included two leased spaces and one owned property. After evaluating Nexcycle's business operations, Real Facilities determined that the company had surplus real estate. However, significant capital had been invested in the existing facilities, which made relocation a costly and impractical solution. While it was evident that downsizing space was required, the challenge lay in removing any notion amongst the two landlords of captive tenancy and finding an ultimate solution that would provide growth and flexibility well into the future.

REAL FACILITIES’ RESPONSE

As the first step in its process Real Facilities completed thorough analyses of both the existing leases and Nexcycle’s ongoing business strategy. Real Facilities then researched multiple solutions within close proximity to the existing locations. As Real Facilities was open with the landlords about the search, this process created a negotiation environment in which both landlords were forced to compete for Nexcycle’s tenancy along with other available options.

THE SOLUTION

The strategy paid off. Real Facilities successfully secured a 10-year renewal at rental rates well below both market and the rent Nexcycle paid under its previous term. Real Facilities secured its client’s required flexibility by physically expanding space in one of the buildings and negotiating an option to terminate after five years should Nexcycle’s need for space decrease.

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CLIENT PROFILE

StackTeck Inc. has been manufacturing, repairing and refurbishing injection molds and systems for the plastics industry for more than 30 years. It is a global leader in integrated plastic tooling for the food packing, housewares, consumer goods, medical/pharmaceutical and cosmetics sectors.

All of StackTeck's operation facilities are located in Brampton, Ontario.

THE CHALLENGE

When it met with Real Facilities, StackTeck was leasing approximately 194,000 square feet of industrial space in two buildings from the same landlord. StackTeck's corporate offices, engineering and manufacturing operations were housed in one building, and its testing and development operations were housed in another across the street. In an effort to save money in a challenging economy, StackTeck was trying to sublet 50,000 square feet of excess space with little success. There was a term of at least seven years remaining on both leases, and relocating was cost-prohibitive, as the expenses of moving the company's state-of-the-art machinery was beyond the boundaries of StanTeck's budget.

REAL FACILITIES’ RESPONSE

In conducting an audit of the existing leases Real Facilities discovered options to terminate a full five years before the actual termination date outlined in the leases. Real Facilities then went to work creating a competitive environment by developing an RFP on behalf of StackTeck that invited rental bids from competing landlords for a space that would consolidate operations under one roof. This RFP was shared with the current landlord. This strategy assumed that the current landlord did not want to have to find new tenants for a split space in a challenging economic climate and StackTeck would have the upper hand at the bargaining table.

THE SOLUTION

As planned, the landlord capitulated, talking back the 50,000 square feet of excess space and providing a short-term extension on the leases for both buildings. Thus, StackTeck was able to shed 25 percent of its costs and avoid an expensive move.

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CLIENT PROFILE

Wardrop for more than half a century, Wardrop Engineering has offered a full suite of technical and professional services to clients and communities around the world. The Wardrop name is recognized for its excellence, innovation and value. One of the fastest growing consulting engineering firms in North America, Wardrop has grown by delivering innovative and practical solutions on large and small, simple and complex projects for clients in both private and public sectors.

THE CHALLENGE

Due to its accelerated growth, Wardrop had accrued a variety of human resource and real estate challenges. Wardrop engaged the services of Real Facilities to implement a real estate strategy for its GTA operations. With multiple offices across the GTA, Wardrop required a real estate plan that would allow for continued growth, flexibility, and attract and retain employees while focusing on potential savings through consolidation and brand consistency.

REAL FACILITIES’ RESPONSE

Real Facilities engaged in an in-depth review and strategic study of all of Wardrop’s facilities. This analysis included a demographic study of all Wardrop employees and a thorough market analysis to identify the optimal locations for Wardrop’s operations, with a keen focus on expansion requirements and employee retention. Given the varying expiries on existing lease commitments, a multi-phase consolidation and expansion strategy was recommended for the company across the Greater Toronto Area. The strategy was presented to Wardrop’s executive committee and approved.

THE SOLUTION

As the first step of a multi-phase real estate plan, RF worked with Wardrop to secure a new 35,000-square-foot signature office location for its Mississauga operations. With the help of RF’s multi disciplinary team, Wardrop was able to explore a variety of real estate solutions ranging from traditional office towers to design build opportunities and mixed-use industrial facilities. Wardrop’s new Meadowvale facility will provide them with a strategic link to engineering clients and competitors, exposure to Highway 401, great expansion rights and a cost-competitive location that will allow for the conversion of an industrial space into a high-end, single-floor, open-concept environment. It has been RF’s pleasure to work with Wardrop and we continue to serve them in the next phase in their GTA real estate plan.

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Maintaining Connection While Expanding and Seeking Autonomy

In this case study, Real Facilities was able to save its client time and resources by developing a simple strategy that facilitated the client’s desire for autonomous expansion, limited dependence and fiscally responsible growth.

CLIENT PROFILE

Futurestep is the industry leader in strategic talent acquisition. A Korn/Ferry company with Canadian offices in Toronto, Calgary, Montréal and Vancouver, its services include strategic recruitment process outsourcing, project-based recruitment, mid-level recruitment, interim professionals and consulting services.

THE CHALLENGE

As with any company riding the crest of success, Futurestep’s explosive growth necessitated an expansion of its operations, which were housed alongside its parent company. Futurestep sought to establish an autonomous presence in the marketplace, but shared an internal IT system with its source. Thus, proximity was an issue and creating a differentiated platform seemed daunting. The main objective was to create a unique market position for Futurestep while leveraging efficiencies of the parent company.

The key question: How would Futurestep expand operations and sustain an autonomous market position?

THE SOLUTION

Using its detailed FLOW™ process coupled with its expertise in needs analysis, Real Facilities confirmed Futurestep’s space requirements and developed a simple, cost-effective strategy. A two-part expansion was planned that would support short-term growth over the next three to five years and render future flexibility as Futurestep transitioned to its autonomous identity.

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New management + new headquarters = updated identity

A former client under new management benefits from Real Facilities’ expertise in finding, leasing and outfitting a work-ready space that more accurately reflects their revised vision for the company’s brand, corporate culture and business model.

CLIENT PROFILE

Corby Distilleries Limited manufactures and markets some of the most renowned brands of spirits and imported wines in Canada. Its head office is located in Toronto, Ontario, with production teams housed in facilities throughout the country. The company had hired Real Facilities to handle real estate and design projects for its facilities throughout Canada a couple of years prior.

THE CHALLENGE

New leadership at Corby Distilleries desired an updated look and feel for their headquarters that would more accurately reflect new management’s vision in terms of corporate culture, branding and business growth model. At the time Real Facilities came on board, Corby headquarters was housed in a five-floor, multi-level building that did not serve that vision.

THE SOLUTION

Real Facilities met with Corby’s executive team to grasp their vision for the new facility. They analyzed Corby’s current space and its operational requirements, and developed specifications that aligned with Corby’s corporate goals and objectives. A detailed needs analysis of the original five-floor building identified inefficiencies that could be eliminated by moving into a single-level facility. Based on Real Facilities’ detailed analysis and recommendation, Corby management elected to choose a single-level facility.

Real Facilities’ innovative FLOW process was integral to the transition. The best real estate professionals in selected markets were engaged to find the ideal premises for its client. This resulted in a short list of possible locations. Real Facilities then sent out requests for proposals from leasing companies for those buildings. The final choice, a space in the heart of Toronto’s entertainment district, not only fulfilled Corby’s space requirements, but the vision of its brand as the pre-eminent distributor of spirits and fine wines throughout Canada.

Real Facilities then successfully negotiated a highly detailed agreement for the premises. Finally, their Project Management + Design team crafted architectural plans, coordinated consultants, managed the tender process, and oversaw furniture construction, delivery and installation before directing the physical relocation.

Corby now inhabits a remarkable space that provides a competitive edge in the wine and spirits industry where they have immediate access to the most promising customers.

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Proper evaluation and finesse create promising yields through real estate assets

When a conglomerate sought to dispose of valuable property assets, Real Facilities did due diligence in property and market analysis and contract negotiation, taking the hassle out of a complicated and time-consuming project.

CLIENT PROFILE

Magellan Aerospace Corporation is a leading supplier of aerospace systems and components. Ellanef, a division of Magellan, manufactures medium and large complex structural airframe parts and mechanical, electromechanical, and hydraulic assemblies.

THE CHALLENGE

Ellanef utilizes manufacturing space at two main sites: the Corona plants in Queens, NY, and the Bohemia plant in Long Island. At the Queens location, Magellan owns seven buildings spread over five city blocks. The holdings consist of parking lots, separate manufacturing facilities, office space and open yards. At the time Magellan sought Real Facilities services, the value of the property had increased exponentially. Magellan’s senior executive team wished to maximize the value of their significant real estate holdings in Queens and dispose of it for profit.

THE SOLUTION

Through detailed evaluation Real Facilities worked with Magellan to convert its overall business plan into a real estate asset plan and developed a strategy to unlock the unrealized potential of the Queens real estate assets.

Acting as Magellan’s expert consultant, Real Facilities conducted a thorough analysis of the properties and the market. They then conducted a formal search for the best, most experienced investment brokers in the Queens area. After careful review of references and qualifications, Real Facilities chose a local broker over a large firm to list the properties. It was felt that the local broker had the skill and experience, and was uniquely positioned to market the portfolio. Real Facilities negotiated the listing contract on behalf of Magellan. All of these efforts resulted in a savings of time and resources for Magellan.

As of this date, Real Facilities has successfully negotiated the sale of three (3) of the seven buildings, which has added value to Magellan’s bottom-line. The remaining properties continue to be marketed and Real Facilities continues to be actively engaged in providing consultation, transaction, and project management services to Magellan world-wide.

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Skillful negotiations and dramatic facelift render award-winning results

Real Facilities’ fully integrated leasing, engineering, project management and design team creatively morphed an otherwise ill-suited facility into an ideal building without the client investing any of its own capital into the building. Its skillful lease negotiations saved the client precious resources and earned accolades from peers.

CLIENT PROFILE

Giftcraft Ltd. designs, imports, manufactures and markets inspirational, handcrafted giftware throughout North America.

THE CHALLENGE

Giftcraft had completely restructured its business over a three-year period, which resulted in rapid growth forecast to continue at a rate of 10 percent per annum. As it grew, Giftcraft’s increased sales volume created a swift but unorganized expansion that lacked infrastructure and adequate warehouse space. After leasing two additional warehouse facilities to accommodate its bulging inventory, the company recognized its need for a long-term real estate strategy. Given the cyclical nature of the giftware industry, the strategy had to be executed within seven short months.

THE SOLUTION

Real Facilities’ initial analysis included building evaluations, a feasibility study for consolidation and careful strategizing to address the potential disposition of its existing facility. While its in-house technical staff prepared appropriate specifications to meet Giftcraft’s current and future growth projections, another team searched the marketplace for suitable buildings and completed a thorough review of available land and building opportunities.

The process produced an award-winning result. Real Facilities’ expert team was able identify a space ideally located within close range of Giftcraft’s existing facility, which allowed its customers to easily find its new location and provide a simplified transition. However, the building’s condition was less than ideal. It required significant heating, ventilation, air conditioning and mechanical upgrades, which were addressed quickly and resulted in additional savings for Giftcraft in the long run. The team crafted a state-of-the-art glass façade to replace the building’s pre-cast construction, giving it a fresh look that reinforced the client’s brand. In addition, a fully automated distribution centre employing the most modern technology was built to ensure that orders would be fulfilled efficiently. A first-class corporate office complex was crafted to house the company’s operations, management and creative teams in comfortable and efficient surroundings.

Finally, the saw-toothed indoor loading dock was transformed into an architecturally praised showroom that is the now highlight of the complex. The 17,000-square-foot showroom boasts European design treatments and enables Giftcraft to display its complete product line year-round. The expansive space accommodates innovative displays that illustrate cross-merchandising opportunities.

In the end, Real Facilities’ skillful negotiations produced for Giftcraft a competitively priced agreement and earned Real Facilities an “Industrial Lease of the Year Award” at the 2008 Toronto NAIOP REX Awards by a vote of their peers in the Commercial Real Estate Development Association.

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Green Consolidation; Blending Disciplines

Through its FLOW™ process, a detailed needs analysis and several consensus-building sessions with senior stakeholders, Real Facilities successfully executed a consolidation strategy that encapsulated the needs of two professional cultures while fulfilling the client’s overall business objectives and corporate vision.

CLIENT PROFILE

Stantec Consulting Ltd. provides professional design and consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying and project management.
Founded in 1954, Stantec continually strives to balance economic, environmental, and social responsibilities.

THE CHALLENGE

Stantec had undergone rapid growth in the greater Toronto area through its acquisition of a number of companies. Its leaders wished to consolidate its eight-office, 150,000-square-foot-space to either one, two, or three locations that, combined, would total 110,000 square feet. Such a consolidation would not only unify space, but would necessitate blending two diverse professional cultures—engineering and architecture—into one cohesive group.

The challenge was to identify optimal real estate locations that would satisfy Stantec’s financial and business needs while honoring its commitment to “green” LEED-certified designs and structures. Stantec sought a partner who was equally sensitive to green issues and knowledgeable about LEED certification. Real Facilities, having committed to operating in ways that contribute to a sustainable environment in its Mission Statement, was Stantec’s natural choice.

THE SOLUTION

By using its FLOW™ process, conducting a detailed needs analysis and attending several consensus-building sessions with all 27 of Stantec’s senior stakeholders, Real Facilities determined that two primary locations—downtown Toronto and Markham—would be the ideal solution for Stantec’s operations, both for their proximity and green potential. They negotiated the simultaneous acquisition of both properties, thus ensuring a smooth relocation; free of hassle and disruption. To facilitate the needs of employees living farther down the coast south of Toronto, an additional satellite office was found in Mississauga, thereby decreasing commutes and augmenting Stantec’s efforts on behalf of the environment. Real Facilities then assisted in closing five Stantec offices that were scattered throughout the greater Toronto area, thus providing Stantec considerable savings in overhead costs.

As the following testimonials confirm, Real Facilities succeeded in locating suitable office space that not only met the client’s spatial and financial needs, but also the aesthetic and personal needs of diverse groups of talented professionals who consolidated their widespread operations to just a few locations. Real Facilities succeeded in saving the client time and money throughout every step of the consolidation process and did so within the boundaries of environmental responsibility.

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From L to R: Mr. Douglas Kilner, President, Orlando Corporation; Ms. Janice Allan, National Manager Human Resources, Kia Canada Inc.; Mr. Bill Porter, Executive Vice President & COO, Kia Canada Inc.; Mr. Stan Krawitz, President, Real Facilities Inc.; Mr. Jung-Kim Park, President & CEO, Kia Canada Inc.; Mr. Sonny Cho, Sr. Advisor, Real Facilities Inc.; Mr. Keith Courville, Advisor, Real Facilities Inc.

Kia Canada

Kia arrived in Canada only five years ago, and has already created a commanding presence. It is the world’s eighth largest vehicle manufacturer and Canada’s fastest growing automotive company. Along with growth came the inevitability for a new Canadian Head Office and Distribution Centre. Real Facilities responded to Kia Canada’s call to be its real estate advisor.

THE CHALLENGE

Kia’s objectives for this project were: (i) to move to a facility that would be capable of accommodating its growth over the next several years, and (ii) to strengthen its Canadian corporate image.

REAL FACILITIES’ RESPONSE

After an extensive search for a pre-existing facility for Kia, it became apparent that the best possible solution was to have a facility custom-built that would respond completely to their very explicit needs.

THE SOLUTION

Kia’s two objectives were met. Its new facility was constructed on land facing the south side of Highway 401 (just west of Hurontario St. in Mississauga, ON). The building’s façade incorporates a prominent showroom adjacent to main reception.

To realize the perfect equivalence of the most favourable rental rates with the most state-of-the-art facility possible, Real Facilities launched a process in which several developers/landlords “bid” for Kia’s tenancy from an extremely detailed architectural spec. Kia moved in on time and on budget in January, 2005.

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VISION TV

VISION TV is Canada's multi-faith and multicultural broadcaster. It presents inspirational, insightful, and original programming that celebrates diversity and promotes understanding among people of different faiths and cultures. VISION TV also includes One: the Body, Mind & Spirit Channel, a digital service, offering programs on natural health, personal growth, and living a planet-friendly lifestyle.

THE CHALLENGE

To prepare for its lease expiry in September 2004, VISION engaged Real Facilities’ services in the summer of 2003 to assist it in assessing its future real estate requirements, in understanding the alternatives available in the marketplace, to negotiate a new long-term lease agreement, and to manage the relocation to its new facility.

VISION TV was focused on key objectives — to find premises that would (i) reflect the company’s core values, brand, and image; (ii) help attract and retain the best people in the industry; (iii) satisfy its distinctive facility requirements as a broadcasting organization; and (iv) meet budgetary constraints over the short-, medium-, and long-term.

REAL FACILITIES’ RESPONSE

With a lease expiry looming, Real Facilities negotiated an extension of VISION TV’s current lease, on a monthly basis, to relieve any perceived pressure. Concurrently, Real Facilities completed a detailed analysis of VISION TV’s requirements, sourced the real estate market for alternatives, and engaged in negotiations on several of them.

THE SOLUTION

Although the process was wide-ranging, VISION TV found the perfect home at Liberty Village’s Liberty Market Building, 171 E. Liberty St. Like the area itself, which is being revitalized, Liberty Market Building is in the process of undergoing an extensive multi-million dollar renovation. It is being greeted with enormous enthusiasm, and is touted as visually astounding. The building is technologically advanced and supported by a broad spectrum of value-added features and amenities, including a pedestrian retail galleria, tenant lounge, and rooftop gardens. It is already home to many established and influential entrepreneurs and artists serving the international and local fashion, film, and television industries. Liberty Market Building offered VISION TV the opportunity for distinctive branding opportunities (e.g., building and rooftop signage and media screens in the galleria), creative space, and a long-term home. With the help of Real Facilities’ Project Management, Construction, and Design Team, VISION TV moved into its new home in April, 2006.

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Ombudsman Ontario

Ontario’s ombudsman is an officer of the Provincial Legislature, independent of the government and political parties. The Ombudsman’s mission is to investigate complaints about provincial government organizations. When something improper is found, the Ombudsman can make recommendations to resolve the problem. If these are not acted upon, the Ombudsman can report the case to the Legislature. It can also help resolve complaints informally.

THE CHALLENGE

Ombudsman Ontario engaged Real Facilities’ to guide it through its upcoming lease negotiations — either a renewal of its current lease or relocation to new premises.

REAL FACILITIES’ RESPONSE

Real Facilities immediately initiated its FLOW™ process. Part of the process included a Needs Analysis of Ombudsman’s then-present premises. The Real Facilities’ Design Team determined that Ombudsman Ontario would be able to reduce its space requirements by approximately 10,000 sq. ft. if they were to relocate — a significant cost savings. Real Facilities invited several building owners (including the current landlord) to “bid” for Ombudsman’s tenancy. This created a fully developed competitive environment that drove net effective rents to a new market low.

THE SOLUTION

The FLOW process was successful. Ombudsman relocated to Bell Trinity Square, 483 Bay St., in the second quarter of 2006, under extremely favourable terms negotiated by Real Facilities.

Ombudsman Ontario retained Real Facilities’ Project Management Team to oversee the design, construction, furniture, and technology implementation for its new home.

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Trillium Health Centre

As one of Canada’s leading community hospitals, Trillium Health Centre is a two-site facility serving a population of over one million residents in Mississauga, south Etobicoke, and the surrounding region. A regional centre for stroke, neurosurgery, and cardiac services, Trillium is also home to one of the busiest emergency services in Canada, a model ambulatory care centre, and the largest free-standing day surgery facility in North America.

THE CHALLENGE

In January 2005, Trillium Health Centre engaged Real Facilities to perform a comprehensive analysis of its office space requirements and commitments. Trillium occupied approximately 30,000 sq. ft. of third-party leased office space and had an expansion requirement for approximately 12,000 sq. ft.

REAL FACILITIES’ RESPONSE

Through Real Facilities’ detailed Needs Analysis, we were able to identify a solution that provided Trillium with more efficient, functional, and cost effective management of its non-medical office requirements.

THE SOLUTION

Trillium Health Centre has recently engaged Real Facilities to formulate a 25-year Master Plan for all of its real estate assets, encompassing approximately 50 acres of its owned land.

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LCBO

The LCBO is the largest retailer of beverage alcohol in the world. It buys wine, spirits, and beer from more than 60 countries around the globe.

THE CHALLENGE

The LCBO turned to Real Facilities to negotiate a lease arrangement providing maximum flexibility — one that would meet the needs for future growth and expansion, while also incorporating options to consolidate and reconfigure existing space to improve operational efficiencies.

REAL FACILITIES’ RESPONSE

Following a painstaking search of the market, Real Facilities negotiated and restructured the lease for the LCBO for its corporate office space. Located at 1 Yonge St., it satisfied both its short-term requirements and long-term objectives.

THE SOLUTION

Real Facilities successfully concluded a lease for an expanded facility in downtown Toronto.

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Royal Bank of Canada

Royal Bank of Canada (RBC) is the largest Canadian bank, with branches across Canada and offices in all urban centres.

THE CHALLENGE

RBC was occupying space in a Toronto suburban office building located at Highway 401 and Kennedy Rd. It needed to expand, although there was ample time remaining on the lease. RBC asked Real Facilities to create leverage with the landlord, expand the premises onto another floor, and extend the term.

REAL FACILITIES’ RESPONSE

After comprehensive needs analysis, Real Facilities restructured and renegotiated the lease for RBC’s office space.

THE SOLUTION

With Real Facilities’ assistance, RBC was able to expand into needed office premises, increase its parking allocations, receive a generous leasehold improvement allowance to build-out the space to suit its requirements, and save considerable money on the rent.

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National Bank of Canada

An active social and economic force for more than 140 years, National Bank of Canada is the sixth largest chartered bank in Canada. With its head office located in Montréal, its Canadian network boasts 546 branches, including 454 in Québec. Internationally, it has offices in all four corners of the globe.

THE CHALLENGE

Real Facilities has completed several transactions — both retail and office renewals as well as relocations — for National Bank. Case in point — National Bank and National Bank Financial had both retail and office premises in Mississauga, ON. While occupying a large section of the building, and being especially proactive in dealing with lease expiries, Real Facilities was hired by National Bank to generate leverage with its landlord.

REAL FACILITIES’ RESPONSE

Real Facilities demonstrated to the landlord that although the bank seemed to be a “captive” tenant in their building because of the retail branch, there were several options the bank could exercise to take advantage of the current market. Specifically, other landlords, in adjacent buildings, were anxious to invite a covenant similar to National Bank to their buildings at aggressive rates.

THE SOLUTION

The present landlord quickly saw that National Bank could easily decide to relocate and that they would be faced with a vacancy spike. The landlord realized that National Bank was serious about relocating. It lowered its rates, without delay, and increased the number of rights National Bank could exercise.

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Crownhill Packaging Ltd.

Packaging pioneers, Crownhill Packaging Ltd., specializes in a wide range of customized products and services. Crownhill provides companies with The Total Package, by offering the convenience of a single source packaging solution.

THE CHALLENGE

Over the past 15 years, Crownhill has experienced significant growth and development of its business model; it expanded its facilities on an “as needed” basis. The consequence was a fragmented portfolio of three facilities — of varying size, age, configuration, and location. The company looked to Real Facilities to develop a consolidation solution: to amalgamate Crownhill’s three facilities into a single efficient location, with minimal effect on the balance sheet.

REAL FACILITIES’ RESPONSE

Real Facilities first completed a thorough analysis of Crownhill’s current facilities and operational requirements. Our in-house technical staff prepared an appropriate facilities specification to meet Crownhill’s current and future growth projections, while adding value to the operational needs and the financial constraints of the business. We searched the marketplace for suitable existing alternative facilities and completed a thorough review of available land and design-build opportunities. This included a formal request for proposal process with selected developers.

THE SOLUTION

During the negotiation process, Real Facilities created value, through the skilful use of negotiating leverage, to position the clients’ tenancy in the marketplace effectively. The final facilities’ solution incorporated a 200,000 sq. ft. design-build facility that provided new operational efficiencies, growth flexibility, and offered a significant branding opportunity. This cost effective, integrated facilities’ solution, forms a solid platform from which Crownhill Packaging will continue to develop its business in the future. The new facility will be ready in 2006.

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Victorian Order of Nurses — Central Region & Toronto York Region

Victorian Order of Nurses (VON), a national registered charity, addresses the health needs of Canadians through services provided by nurses, other health professionals, support service workers, and volunteers.

THE CHALLENGE

VON had been located in an older, run-down, Class “C” building in Midtown Toronto for several years. Although this building was to some extent cost effective, it projected an undesirable organizational image. To transform this, VON appointed Real Facilities.

REAL FACILITIES’ RESPONSE

After undertaking an exhaustive needs analysis, it was determined that VON’s office staff would be comfortable relocating their premises just north of Toronto. By doing this, the organization would be able to lease premises in a more attractive building as a result of a decrease in property taxes.

THE SOLUTION

After a detailed market analysis and several visits to various sites, Real Facilities subsequently negotiated favourable lease terms on behalf of VON for a building located at the intersection of Hwy. 404 and Steeles. Ave. in Markham. This location provided VON with a cost effective solution as well as a more congruent profile.

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Workbrain

Workbrain is a leading provider of employee management software to large global corporations. Workbrain provides Total Workforce Management. Through its award-winning Workbrain family of products, the company provides a total suite of workforce management applications to help large enterprises across multiple industries around the world meet the complex challenge of planning, deploying, managing, and measuring their workforce.

THE CHALLENGE

Workbrain initially selected Real Facilities to negotiate the expansion for its new facility in early 2001 to meet its exponential growth.

REAL FACILITIES’ RESPONSE

Real Facilities assisted Workbrain in understanding its continuing facilities requirement needs through detailed needs analysis. Real Facilities has engaged in complex negotiations with both the head landlord and other tenants in Workbrain’s present building. Workbrain has recently concluded another agreement for the company to expand its current facility at 250 Ferrand Dr. in the Don Mills area of Toronto. Real Facilities has assisted Workbrain negotiate leases from 26,000 sq. ft. to 42,000 sq. ft. to 58,000 sq. ft. to 74,000 sq. ft. and, most recently, to 96,000 sq. ft.

THE SOLUTION

The original strategy initiated by Real Facilities has ensured Workbrain’s ability to accommodate its rapid growth.

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TORKIN MANES COHEN ARBUS LLP

For more than three decades, Torkin Manes' clients have consistently benefited from the broad experience and expertise of legal advisors considered to be leaders in their respective practice areas. Offering the same quality of expertise expected at a larger firm, with the advantages that come from being a mid-sized firm, Torkin Manes’ professionals counsel people who require pragmatic, proactive, and strategic advice on a myriad of issues. These include administrative and business law, commercial real estate and construction law, litigation, restructuring and security realization, estate planning and personal financial management, employment issues, personal injuries, and family matters.

THE CHALLENGE

In the summer of 2004, Real Facilities was retained by Torkin Manes to help evaluate an unsolicited offer it received to lease its space to a neighbouring tenant who required a significant amount of expansion space. While Torkin Manes still had approximately three years left on its lease, it found itself in the exceptional position of being able to explore relocation to a new facility in an extremely competitive real estate market — all in the absence of any pressure to enter into any new agreement.

REAL FACILITIES’ RESPONSE

Real Facilities’ approach was simultaneously to negotiate the assignment of Torkin Manes’ present space to its neighbour, source the market for alternates, negotiate relocation to new premises, and investigate a long-term renewal of its present space.

THE SOLUTION

A particularly feasible and credible alternative was found. It created an environment that induced the existing landlord to offer Torkin Manes a competitive long-term renewal proposal. The strategy worked, and Real Facilities successfully completed a 10-year renewal term for 41,000 sq. ft.

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ROBINS, APPLEBY & TAUB LLP

Robins, Appleby & Taub is a business law boutique located in the financial district of downtown Toronto. It is focused on the needs of two major client groups — (i) family and closely held businesses and (ii) the real estate industry.

THE CHALLENGE

Because of previous rights given to a neighbouring tenant, Robins, Appleby & Taub received notice from its landlord that it was impossible to renew its existing lease. In response, the firm retained Real Facilities in the fall of 2004 to assist it in evaluating relocation proposals and in relocating to new premises.

REAL FACILITIES’ RESPONSE

Given the limited amount of time to find, lease, and outfit new premises, Real Facilities immediately initiated its FLOW™ process. A detailed Needs Analysis, including the engagement of an interior designer to assess and evaluate future space requirements, was completed. Real Facilities then sourced the downtown real estate market and facilitated an RFP process in which several building owners could “bid” for Robins, Appleby & Taub’s tenancy.

THE SOLUTION

The process was successful. Robins, Appleby & Taub is enthusiastic about its relocation to the top floor of Richmond Adelaide Centre, 120 Adelaide St. W. Real Facilities distinctive FLOW™ process identified premises that were not previously proposed by the firm’s landlord. Negotiated by the Real Facilities Negotiating Team, the premises are being leased under extremely favourable terms.

Robins, Appleby & Taub is currently working with Real Facilities’ Project Management team to oversee the design, construction, furniture, and technology implementation for its new home.

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Tucows Inc.

Tucows Inc. is a leading provider of wholesale Internet services and back office solutions to a global network of more than 6,000 web hosting companies, ISPs, and other service providers.

THE CHALLENGE

Tucows occupied 19,000 sq. ft. and needed to expand. Its goal was to achieve this without relocating. 11,000 sq. ft. of space was available for sublet in an adjacent building.

REAL FACILITIES’ RESPONSE

Real Facilities persuaded the neighbouring tenant to terminate its lease and to relocate.

THE SOLUTION

Real Facilities negotiated a staircase to bridge the buildings, arranged a rooftop deck for Tucows use, extended the term, negotiated free rent and landlord’s work, and arranged for necessary furniture that would seamlessly blend with the existing lines.

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Echo Advertising + Marketing Inc.

Echo Advertising + Marketing Inc. was founded in 1978 in Toronto as a full-service advertising agency. It has become one of Canada’s largest independent advertising and marketing companies, serving a diverse group of international clients through its offices in Toronto and London, England.

THE CHALLENGE

Real Facilities was retained to conduct a market evaluation of downtown office space. Echo’s concern was whether to renew or relocate. It believed that its landlord perceived it to be “captive”.

REAL FACILITIES’ RESPONSE

Real Facilities’ methodology was to create a competitive environment in which Echo’s landlord would have to compete — with other landlords — for its renewed tenancy. Real Facilities found an extremely feasible and credible alternate. It had been lavishly outfitted with furniture, leaseholds, technology, and expensive construction, and Real Facilities negotiated a subsidy from the previous tenant. This alternative created an environment that persuaded the present landlord to be unusually aggressive in its renewal proposal to Echo.

THE SOLUTION

The strategy worked, and Real Facilities successfully completed a 10-year renewal term for 38,000 sq. ft. The renewal possesses unusual flexibility, including termination and contraction options, as well as naming rights and an option to purchase the building.

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Siebel Systems

Siebel Systems is a multinational software company with annual revenues of $1.8 billion. In late 2000, following the acquisition of Toronto's Janna Systems, Siebel turned to Real Facilities to find and lease the optimal space for the company's new combined Canadian operations.

"We wanted to combine our operations efficiently and operate in a high profile space that would meet our advanced technology demands," says Linda Jansen, Vice President of Facilities and Real Estate for Siebel Systems. "Real Facilities were able to help us select and secure a strategic property in the midst of uncertainty associated with a major acquisition. The results were outstanding and a key factor in a successful merger."

With Real Facilities' assistance, Siebel leased over 100,000 square feet of office space in one of Toronto's most technologically advanced facilities, complete with highly visible signage and underground parking. Real Facilities negotiated flexible provisions in the lease to accommodate future growth and the two organizations will be effectively integrated in record time.

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Brightspark Labs

Brightspark is a Toronto-based investment company that creates, develops and funds globally recognized software companies. Seeking to create a flexible, high tech environment to foster innovation, and house several portfolio companies at varying stages of growth, Brightspark engaged Real Facilities to Find Lease and Outfit their premises.

"We believe we should be focusing on building technology expertise, not focusing on real estate or facilities issues" says Steven Bloom, CFO of Brightspark. "We outsource most of our real estate function to Real Facilities, eliminating hassles and making it easier to focus on what we do best: launching technology companies."

Using Real Facilities, Brightspark leased and outfitted several work-ready office facilities in midtown Toronto and created environments that have successfully spawned several innovative technology companies.

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Real Facilities is pleased to announce the conclusion of a lease for a new facility for Datawire Communication Networks, an innovative provider of secure financial transaction processing services. Datawire selected Real Facilities to find, lease and outfit a new facility following the conclusion of its latest round of venture financing.

Following a very detailed analysis of Datawire's needs, and an exhaustive search, Real Facilities has concluded an agreement to lease 16,000 square feet of office space at 10 Carlson Court, near Pearson International Airport in Toronto. The new facility ensures that Datawire will be able to house a rapid growth in its employee base.

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Real Facilities is pleased to announce the conclusion of a lease for a new facility for Karabus Management. Karabus, a leading management consulting firm specializing in the retail and consumer product industries, selected Real Facilities to find, lease and outfit a new facility in early 2001.

Following a detailed analysis of the company's needs and a focused search, Real Facilities was able to meet Karabus's aggressive relocation schedule and has concluded an agreement for Karabus to lease over 7,000 square feet of office space at 2 Tippett Road in northern Toronto.

Real Facilities and its partners worked to design, build and outfit the premises to ensure Karabus was work ready, on time and on budget.

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Real Facilities is pleased to announce the conclusion of a lease to expand the call-centre facility for Georgeson Shareholder Communications in downtown Toronto. Georgeson, the leading global provider of communications services for companies needing to communicate important information to, and elicit response from shareholders, selected Real Facilities to negotiate its expansion following the rapid growth of its call centre facility, which opened in March of 2000.

Working to ensure maximum flexibility for future expansion, Real Facilities negotiated for 14,000 additional square feet of space at Georgeson's current facility at 777 Bay Street in downtown Toronto.

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Real Facilities is pleased to announce the conclusion of a lease for A. Farber and Partners, Inc., a leading provider of financial solutions and insolvency services for individuals and small businesses. Following its acquisition of Watkins, Wilson and Associates, A. Farber and Partners turned to Real Facilities to find, lease and outfit a new facility in the Downsview area of northern Toronto, its 22nd location in Canada.

Following a detailed search, Real Facilities renegotiated and restructured the lease for A. Farber and Partners with O & Y Properties for its office space located at the corner of Lawrence Avenue West and Allen Road.

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Real Facilities is pleased to announce the conclusion of a lease for a new facility for Infotriever, a Brightspark Labs company. Brightspark Labs, a Toronto-based investment company that creates, develops and funds globally recognized software companies, outsources many real estate functions for itself and for its portfolio companies to Real Facilities. Inforbit selected Real Facilities to find and lease its new facility when the company outgrew the Brightspark Labs facility in midtown Toronto.

Moving quickly following a focused search, Real Facilities has concluded an agreement for Inforbit to lease almost 12,000 square feet of office space near the corner of Yonge and Eglinton.

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All brokerage services and transactions are completed by RF Real Estate Inc., The Real Estate Brokers of Real Facilities.