Facility Solution Meets Philosophy & Budget Needs, Includes LEED Certification

When an engineering firm anticipated doubling its size within two years, a new facility was required. Faced with challenges, the Real Facilities team capitalized on its strength in lease negotiation and creative sourcing to successfully overcome obstacles. In addition, Real Facilities Project Management & Design team implemented the client’s LEEDs certification premises.

ARUP

CLIENT PROFILE

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

Arup brings together broad-minded individuals from a wide range of disciplines and encourages them to look beyond the constraints of its own specialties. 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 work and its dedicated pursuit of technical excellence.

THE CHALLENGE

Experiencing explosive employee growth, Arup was saddled with a facility that provided no room for expansion and a need for space that required doubling in size (from 8,000 – 16,000 square feet) over the course of the next 12 -24 months. Aside from location and budgetary constraints, Arup was further challenged by a two-year lease obligation at its existing facility. Finally, given Arup’s role as a leader in the engineering world, designing the premises to LEED certification was determined to be a critical requirement.

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 successfully 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, coinciding with the expiry of the existing lease. Notwithstanding this rent structure, Arup was permitted to fit out and occupy 100% of the premises 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 its 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 all the real estate alternatives under consideration, drive the design process, and oversee the implementation of the fit out of its new LEED-certified premises.

Real Facilities Takes Care of the Details so Clients Can Focus on Their Business

Like many businesses, this Toronto-based investment company and technology incubator needed to concentrate on its own day-to-day functions, instead of investing its resources in the real estate process. They hired Real Facilities to attend to its real estate needs, which allowed the investment company’s management team to do what they do best – launch successful technology companies.

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 its 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 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.

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 the revised vision for the company’s brand, corporate culture and business model.

Corby Distilleries Limited

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 its 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 its 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 recommendations, Corby management elected to choose a single-level facility.

Real Facilities’ innovative FLOW™ process was integral to the transition. This resulted in a short list of possible locations. Real Facilities then sent out requests for proposals to the short-listed 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 full floor premises. Finally, its Project Management + Design team crafted architectural plans, coordinated consultants, managed the tender process, oversaw construction, selected furniture, oversaw delivery and installation before managing 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.

“The FLOW™ process led us seamlessly through the consulting phase, to the space search, to the lease negotiation, and finally to the design, construction, project management, furniture and move management phase. With the entire team involved from day one there was never a need to reiterate or repeat our mission or vision to multiple suppliers and vendors. This saved us time and money and we always knew that Real Facilities was completely accountable and accepted that responsibility.

“In a nutshell, the team “hit a home run” by doing a spectacular job in bringing all aspects of the project together exactly as I envisioned and exactly as they promised. They are trusted advisors and partners to me and to my entire team at Corby Distilleries.

“Working with Real Facilities allowed us to focus on our core business as the transaction, design and project management teams guided us through the detailed and time-consuming relocation process.”
Con Constandis, President & Chief Executive Officer Corby Distilleries Limited

Consolidation Offers Efficient Client Solution

In the interest of efficiency, a packaging firm saw the need to consolidate multiple facilities under one roof. After completing a thorough analysis of the firm’s current facilities, operational requirements, future growth projections and financial constraints, Real Facilities found the solution—a 200,000-square-foot design-build facility that provided new operational efficiencies, growth flexibility, and a significant branding opportunity.

Crownhill Packaging Ltd.

CLIENT PROFILE

Packaging pioneer 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 and 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, which was 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 solution incorporated a 200,000-square-foot, design-build facility, built by one of their existing landlords, 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.

“We knew these professionals were right up our alley, right from beginning to end. They handled all the negotiations, managed the builders, and got us settled when it was time to make the big move. It was simple, allowing us to focus on our core business” John Posno, Founder & President, Crownhill Packaging Ltd.

Real Facilities Solution Allows Company Growth

Datawire Communications Networks

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 of its employee base.

Should You Stay or Should You Go?

Real Facilities’ methodology successfully answers the age-old tenant question, “Do we renew our lease or move?”

Echo Advertising + Marketing Inc.

CLIENT PROFILE

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. They believed that their landlord perceived them to be “captive” tenants.

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 square. feet. The renewal possesses unusual flexibility, including termination and contraction options, as well as naming rights and an option to purchase the building.

“I don’t make any real estate decisions without counsel from Real Facilities – they are simply the best corporate real advisors in Canada!
Len Gill, President, Echo Advertising & Marketing Inc.

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.

Futurestep

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 parent company. 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 client 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.

Phase 1: Real Facilities performed a thorough market search and subsequently approached Korn/Ferry’s landlord to confirm the available space opportunities within the clients existing elevator bank. Because Futurestep is an autonomous group, with the ability to relocate, we were able to negotiate extremely favourable terms, which allowed Futurestep to continue to share internal IT and support systems with the parent company, thus saving time and resources. Further, Korn/Ferry retained Real Facilities’ Design and Project Management Team to design Futurestep’s onsite premises and oversee the construction, furniture and technology installations, which would facilitate a unified, autonomous look. In the interest of short-term savings and long-term goals, capital investment into the onsite space improvements were limited to client areas, with the balance of the premises designed with systems furniture that, if required, could be relocated to a new location.

Phase 2: After two short years, Real Facilities conducted another stringent market analysis and determined that further expansion within the existing building was not possible. In addition, Korn/Ferry had abandoned its IT system and transitioned to a VoIP system, thus eliminating Futurestep’s dependence on its onsite location. Honouring the client’s desire to remain near its parent company, Real Facilities secured a new location in close proximity to Korn/Ferry. Dovetailing on the success of Phase 1, Korn/Ferry once again utilized the expertise of Real Facilities Project Management + Design team to design the new space and oversee its construction, furniture, and technology installations. These efforts resulted in a space that allowed for growth and maintained a balance between operational connectivity and autonomy. These goals were accomplished well within budget.

The art of relocation is finding a space that supports the business plan and brand strategy—it is the cornerstone on which Real Facilities stands. Relying on the expertise of its experienced and accomplished staff and its collective reputation as a trusted consultant, Real Facilities orchestrated the location of appropriate space, a cohesive look and a seamless transition within a conservative budget.

“I was impressed with Real Facilities’ professional approach to every detail in preparation of the scope of the projects. From the time the projects began, Real Facilities ensured every aspect of the contract was managed with a hands-on approach, ensuring the least amount of disruption to our business. Their attention to detail, their responsiveness to our needs as well as the needs of the contractors, and their excellent project management skills allowed me to concentrate on running the business, not running the projects. As obvious leaders in their field, it was truly a pleasure to deal with Real Facilities
Gary Rewald, Vice President Administration, FutureStep

Real Facilities Successfully Negotiates Lease for Client

A. Farber and Partners Inc.

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.

Subsequently, Real Facilities has been hired to renegotiate the head office lease at Sheppard Ave and Leslie Ave, open a new office in the financial core of Toronto, and renegotiate a number of leases within the portfolio.

“We appreciate the analytical approach Real Facilities took in comparing the various alternatives available for us. Using our cash flow model to evaluate any financial decision, Real Facilities readily work with us to access options.”
Alan Farber, President

Real Facilities Client Needs Analysis successful study tool to help client achieve operational efficiencies

G.N. Johnston Equipment

G.N. Johnston Equipment has been the Canadian dealer for Raymond Corporation, a global provider of lift trucks and materials-handling solutions, since 1954. G.N. Johnston maintains thirteen service centres from coast to coast, and is a leader in the sales and rental of materials-handling equipment to warehouse operators.

The head office and main distribution facility, located in a leased building of 170,000 square feet in Mississauga, Ontario, serves as a technical training centre and classroom facility. Johnston also maintains a 25,000-square-foot leased service facility in Markham, Ontario, that serves customers east and north of the City of Toronto.

Prior to the economic downturn in 2008, Johnston underwent a period of rapid growth in sales of both new and refurbished equipment. This rapid growth prompted it to expand its warehouse/distribution and equipment repair operations at its Mississauga facility as well as add two additional leased premises of 40,000 and 21,000 square feet, respectively.

THE CHALLENGE

Johnston retained Real Facilities to undertake a thorough study of Johnston Equipment’s existing facilities in the Greater Toronto Area and to report on the various real estate options available to satisfy its projected sales growth from a financial, operational and business perspective.

REAL FACILITIES' RESPONSE

Real Facilities initiated its FLOW™ Process and, working closely with Johnston’s operating staff and executive committee, developed a detailed Client Needs Analysis report defining an optimal facility solution to satisfy Johnston’s growth projections, preferred location and building requirements for size, layout, product flow, and technical specifications, among other considerations.

One of the key objectives of the study was to identify a means of achieving operational efficiencies inherent in consolidating the Mississauga facilities within the guidelines of sales forecasts and operating budgets.

THE SOLUTION

In successfully consolidating its Mississauga operations Real Facilities achieved all of Johnston Equipment’s long-term goals by skilfully renegotiating the lease of the Mississauga head office and obtaining a second lease on the adjacent building to meet both present and future space and operational needs.

During the process, Real Facilities also assisted Johnston in lease negotiations in Calgary, Edmonton and Regina, and renegotiated the lease on its Markham facility to make all leases within the GTA coterminous.

Expansion Lease for Call Centre Includes Plans for the Future

Georgeson Shareholder

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.

“Real Facilities single headedly negotiated incredible lease terms for our company.”
Glen Keeling, Vice President

Industrial Lease of the Year

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 site. Its skillful lease negotiations saved the client precious resources and earned accolades from peers.

Giftcraft

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 summarily addressed and resulted in additional savings for Giftcraft in the long run. The Real Facilities 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 that rendered no rent for the existing landlord was transformed into an architecturally praised showroom that is the now the 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 its peers in the Commercial Real Estate Brokerage & Development Association.

Time Constraint Challenges Overcome

Infotriever

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 efficiently following a focused search, Real Facilities has concluded an agreement for Inforbit to lease almost 12,000 square feet of built-out office space near the corner of Yonge Street and Eglinton Avenue in Toronto.

Lease Renegotiation Made Simple

In this case study, simple research and analysis of the market allowed Real Facilities to renegotiate the lease with the client resulting in a significant decrease in net rents.

ITW Construction Products

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 the 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% reduction in net rents on behalf of ITW.

“The Real Facilities Inc. team was able to negotiate a 13% decrease of our current lease rate. They were very patient in dealing with our firm as we took 6 weeks to get the proper corporate approvals within our company. We look forward to continuing this fruitful relationship in future years with Real Facilities Inc. and I would not hesitate to recommend them to others.”
TIM DUNNING, CGA Controller, ITW Construction Products

Real Facilities Provides Services On Time and Within Budget

Karabus Management

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.

Real Facilities Reduces Overall “Footprint”

An import/export firm was challenged by the constraints of its current space and needed a facility that contained less floor area, higher ceiling heights and a lower rent. Real Facilities successfully rose to meet these challenges.

Keele Warehousing & Logistics

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.

Automotive Maker Moves to Canada

When Kia needed to expand its Canadian presence and strengthen its corporate image, Real Facilities was there to find the solution.

Kia’s Groundbreaking, 23 Oct. 2003 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

Having arrived in Canada only five years earlier, Kia had 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 its 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 a 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. With Real Facilities’ guidance Kia moved in on time and on budget in January, 2005.

“We needed a facility capable of supporting our anticipated growth over the next decade. Real Facilities was with us every step of the way. At no time was any issue either too big or too small. It became clear that we’d have to build to suit. Real Facilities’ innovative process in managing numerous competitive bids ensured we got the biggest bang for the buck.”

“Thanks to the team’s expertise, dedication, and commitment to excellence, we moved in, on time and on budget – how refreshing!”
Donald Knowles, Real Estate

Lease Renegotiation, Project Management + Design… Real Facilities teams deliver on-time and on-budget!

Korn/Ferry International

CLIENT PROFILE

Korn/Ferry International has been the executive recruitment industry’s leader and innovator since its founding in 1969, and is the world’s premier provider of talent management solutions. With nearly 80 offices in 40 countries, Korn/Ferry ensures that its clients have access to the most qualified candidates for every position. More clients around the world trust Korn/Ferry than any other firm to deliver and develop the best executives to run their organizations—a responsibility it takes seriously and works every day to meet with integrity and results.

THE CHALLENGE

With its lease in Canada’s premier office building, Brookfield Place, approaching expiry and a desire to rejuvenate its Canadian Head Office, Korn/Ferry engaged Real Facilities to explore and evaluate its workplace structure, including its relocation options in the Toronto office market. It’s corporate structure consists of three primary business units: executive search/ recruitment (Korn/Ferry), talent management consulting (Leadership and Talent Consulting) and project-based/mid-level recruitment (Futurestep). These different but complimentary business units provided a variety of options to accommodate short-, mid-, and long-term growth. With an internationally recognized brand servicing the country’s top executives, maintaining a highly professional and first-class image within the financial core was of paramount importance.

REAL FACILITIES’ RESPONSE

Real Facilities initiated its FLOW™ process, first completing a thorough analysis of Korn/Ferry’s facilities and operational requirements. Second, Real Facilities brainstormed strategies to align Korn/Ferry’s real estate with its corporate and business-plans. While the existing building was a viable option, the final strategy placed Korn/Ferry’s tenancy on the market through a Request For Proposal call to all landlords of AAA and A Class buildings in the financial core. The RFP required solutions that accommodated the options available to Korn/Ferry, including the new office towers being built within the financial core. The strategy worked, and the process uncovered a number of excellent alternatives.

THE SOLUTION

Remaining in the existing complex was initially viewed as the best solution, as Brookfield Place had maintained its status as Canada’s premier office building despite the construction of four new office buildings going on around it in the financial core. However, a phased construction within Korn/Ferry's existing premises was thought to be more time consuming and disruptive to operations than relocating to a new space that could be built during the last few months of the remaining term.

As the deliberations continued, Real Facilities learned of an available sublease space not yet being marketed within the same elevator bank as the current premises. The Real Facilities team capitalized on capitalized on the situation by entering into negotiations with both the sublandlords and head landlord to secure the new space for its client. Real Facilities Project Management + Design was then engaged to implement the original vision conceived at the commencement of the process. The new space was completed on time and within budget.

Lease Renegotiation Results in Long-Term Savings

With no plans to move, the LCBO turned to Real Facilities to renegotiate its current office lease. Real Facilities was able to find creative solutions for the lease, which resulted in long-term savings.

LCBO

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 term, Those rights included expansion rights, 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 lease termination rights. In early 2009, the LCBO had no intention of relocating from its 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 its 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 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.

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, market analysis and contract negotiation, taking the hassle out of a complicated and time-consuming project.

Magellan

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 its significant real estate holdings in Queens, improve operational efficiencies 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. This plan developed a strategy to unlock the unrealized potential of the Queens real estate assets.

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

Real Facilities has successfully negotiated the sale of four (4) of the seven buildings and consolidated operations into the remaining (3) three properties,, which has added value to Magellan’s bottom-line. Real Facilities continues to be actively engaged in providing consultation, transaction, and project management services to Magellan Aerospace world-wide.

Major Building Tenant Breaks Captive Tenancy

Occupying significant space, a major national bank appeared to be a “captive tenant” in its building. Real Facilities renegotiated its lease awarding the client with increased rights, flexibility and a reduced rate.

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 its 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’s for 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.

Real Facilities Overcomes Tight Timeline Challenges

Contractual obligations and time constraints threatened a major logistical provider. Real Facilities identified a landlord eager to lease its building and negotiated rental rates below market. Our client was able to move into the facility without any delay of its primary operations, maintaining its dependable reputation with its customers.

National Logistics Services

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 contractual 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.

Landlords Compete, Resulting in Growth Opportunity and Flexibility for Future

In this case study, a large plastic recycling company needed to review its real estate needs and secure lower renewal rates. Coming up with several options for the company was a challenge, but Real Facilities was successful in meeting the client’s demanding requirements for below market rates and allowing for growth and flexibility.

Nexcycle Plastics Inc.

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.

“Determining our actual needs was one of the biggest hurdles we faced, and Daniel, Allen and Bob were very interested, helpful and most of all patient as we moved through our decision process. …Our wish list of building characteristics was not an easy thing to come by and they did an exhaustive search and came up with several options for us.

We continue to use Real Facilities and would be more than pleased to refer them to any prospective client”
NEXCYCLE PLASTICS INC. Mary Frazier, CFO

NORTHUMBERLAND HILLS HOSPITAL

CLIENT PROFILE

Opened in October, 2003, the Northumberland Hills Hospital is a state-of-the-art, 137-bed medical facility providing compassionate and patient-centred care. In recognition of its patient focus and community-integrated approach, Northumberland Hills Hospital is a proud recipient of the highest level of hospital accreditation offered by the Province of Ontario.

THE CHALLENGE

Northumberland Hills Hospital engaged the services of Real Facilities to review its non-clinical space needs, and provide recommendations on the most cost-effective real estate solutions for the proposed construction of a new administrative building at its current site. The project would also give consideration to providing the physician community with the opportunity to lease a portion of the building.

REAL FACILITIES RESPONSE

Real Facilities' professionals addressed Northumberland Hills Hospital's objectives from a number of perspectives, including: Design and Project Delivery, Construction, Finance, Cost-Benefit Analysis, Landlord Perspective, Tenant Representation Perspective, and Commercial Real Estate Brokerage.

This assignment, included:

• a detailed review of current leases to identify the pros and cons of each lease as it relates to each location;
• a review of current work space standards and use, assessment of future requirements, and, if required/applicable, developing future work space standards with respect to non-clinical space needs;
• the development of a real estate strategy over the short and long terms, including the proposed development on Northumberland Hills Hospital lands;
• evaluation of off-site leasing opportunities available through third-party landlords or new design-build facilities; and
• feasibility assessments of the proposed building regarding desired tenant mix; potential revenue; building management; optimal ownership structure; and the establishment of short– and long-term capital asset plans, as well as an exit strategy for disposition of these assets.

NOVATOR ®

Novator E-commerce (Novator) is an e-commerce solution partner with a singular focus on online retail, which integrates industry-leading services and hosting technology through its Virtual Retailer™ platform and 15 years of e-commerce experience. Since 1994, Novator's solutions and services have been the foundation of some of the world's most demanding e-commerce businesses. Clients include online retailers such as FTD.com, Brookstone, American Express International and Lucas Films.

THE CHALLENGE

Entering into a growth phase, Novator engaged the services of Real Facilities to develop a real estate strategy to secure premises that could increase its operational efficiency while simultaneously saving money on real estate costs over that of its existing facility. A keen focus was given to employee satisfaction and the company's ability to attract and retain employees through its positive work environment.

REAL FACILITIES' RESPONSE

Real Facilities initiated its Real Estate FLOW process, taking a highly detailied and strategic approach to identifying Novator's real estate requirements. These requirements were then prioritized with senior management based on the company's must-haves and wants in order to align these desires with the overall business strategy. Real Facilities took painstaking measures to source premises and locate the facility that would create a positive and productive environment for its staff.

THE SOLUTION

Ideal premises were located in a brick-and-beam space in Toronto's Downtown West market node. The premises allows Novator to maximize its employee count without detracting from a work environment designed to maximize productivity. Additionally, the terms of its lease provide Novator with the flexibilty to either expand or contract its operations with ease based on the fluid needs of the organization.

With the assistance of Real Facilities Project Management & Design, novero™ moved in on time and within its budget.

novero™

Born in 2008 from a special unit of the world’s leading mobile phone vendor, Nokia Corp., novero™ is a radically creative technology company, passionate about creating wireless products that integrate seamlessly into one's life with impeccable style. novero leverages its visionary leadership team, creative design and technology prowess to deliver a new class of wireless solutions for consumers and auto manufacturers alike. The company has flourished and continues to grow behind its belief that technology and human interaction should be seamless, simple and stylish.

THE CHALLENGE

Entering into the Canadian market in early 2009, novero approached Real Facilities to develop a strategy that would minimize its start-up costs while providing flexibility for mid- and long-term growth. As an added challenge, the solution would have to accommodate the client’s need for product-test lab space to be housed in a traditional office building.

REAL FACILITIES’ RESPONSE

Real Facilities initiated its FLOW™ process beginning with an in-depth analysis to confirm the company’s actual space requirements. Given the infancy of the company, forecasting growth beyond 12 to 24 months was not realistic. With the knowledge that a solid growth plan is essential to novero’s™ success, Real Facilities began to source the market for short-term opportunities in buildings capable of accommodating exponential growth and lab space.

THE SOLUTION

The process worked and an ideal location was found. The 8,000-square-foot space offered a one-year sublease, 4,000 square feet of adjacent vacant space and an additional 500 square feet ideal for the product-testing lab. The location even included furniture—an unexpected bonus that provided novero™ both in additional savings time and money.

With Real Facilities' guidance, novero™ made the strategic decision not to commit to any future expansion, which would require the head landlord to compete for novero™ ’s longer-term tenancy. The strategy worked. Once novero™ established itself in the market and its mid-term growth was determined, Real Facilities helped it re-enter the real estate market for larger premises. Real Facilities Project Management + Design established the budget, a feasibility plan and conducted a financial analysis to evaluate the three best market options, which included remaining and expanding within its existing building.

It was ultimately determined, based on overall economics and the projected future growth, that relocation to Allstate Parkway would be ideal. The four-building complex offered numerous amenities not available in the initial building that gave novero™ an edge in terms of employee attraction and retention. In addition, the Allstate space provided significant additional expansion options for the future. Built-out premises were found and special concessions were permitted by the landlord to allow for novero’s™ lab requirement, along with specific rights secured for expansion on their floor. With the assistance of Real Facilities Project Management & Design, novero™ moved in on time and within its budget.

“Real Facilities was the obvious choice. We were certain that there would be no conflict of interest.”

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 also can 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 Project Management + Design team determined that Ombudsman Ontario would be able to reduce its space requirements by approximately 10,000 square feet 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 + Design Inc. to oversee the design, construction, furniture, and technology implementation for its new home.

“Real Facilities’ overall strength is project management for sure. There was nothing we asked that they were unable or unwilling to manage for us. We see great value in their consultative approach. “
Peter Allen, Corporate Services Ombudsman Ontario,

PANASONIC CANADA INC.

Panasonic Canada Inc. Is the Canadian sales arm of Panasonic Corporation, a leading supplier of electronic equipment to both commercial and consumer markets throughout the country. With offices across Canada and sales exceeding $903 million (2007), the brand names Panasonic and Technics have become permanent fixtures in Canadian homes and businesses.

THE CHALLENGE

Panasonic was paying above market rental rates on an existing 242,000-sqare-foot industrial warehouse in Mississauga, Ontario. While Panasonic was pleased with the quality of the building, the company was in the middle of acquiring SANYO Corp. while experiencing the effects of the global recession of 2009. The lease on the warehouse was to expire in 24 months. These conditions prompted Panasonic to retain Real Facilities to renegotiate its lease prior to lease expiry in an attempt to save money. As Panasonic was uncertain about what would be required of the warehouse in the future, it was critical that the lease contained as much flexibility as possible.

The renegotiation process would be complicated. Both the warehouse and Panasonic's management team were located in Canada while the decision-making team was located in the U.S.

REAL FACILITIES' RESPONSE

First, Real Facilities conducted a comprehensive analysis of Panasonic's business needs (short, medium and long term). They then conducted a thorough study of the existing space as well as comparable spaces in the local market to give Panasonic a strong position at the negotiation table. During the process, Real Facilities was fastidious in keeping both the Canadian management team and its American counterparts fully informed about their findings and the steps they intended to take on Panasonic's behalf.

THE SOLUTION

Using the recession as a backdrop for its negotiation process, Real Facilities successfully won a reduced rental rate that met both Panasonic's business and economic needs and allowed them to keep the high-quality industrial space they needed to fulfill all their intricate logistical requirements.

Real Facilities Helps Client Realize Savings At Crucial Time of Restructuring, While Maintaining Production

RB&W Corporation

RB&W Corporation is a leader in cold-forming technology and one of the largest producers of cold-formed parts in the U.S. RB&W’s industrial products and engineering expertise have provided a variety of industries worldwide with innovative and effective manufacturing solutions.

THE CHALLENGE

In recent years RB&W has struggled through the economic challenges facing the auto industy. Exacerbating its difficulites was the fact that at the time RB&W engaged Real Facilities' help, there were three years remaining on its lease—with escalating above-market rents. In addition, the existing premises housed heavy machinery that would entail high relocation costs. The challenge was to renegotiate and restructure the existing lease and reduce the rental rates while combatting the landlord’s perception of RB&W as a captive tenant with no real relocation options.

REAL FACILITIES’ RESPONSE

After a thorough evaluation of the lease, Real Facilities found opportunities to reduce RB&W’s operating costs and reduce its net rents. It then embarked on a thorough negotation process that capitalized on the industry drivers relating to the financial and economic realities of the auto industry, and established financial terms that ensured that RB&W would not be the next of many companies to end production in Canada and move to lower-cost markets.

THE SOLUTION

The Real Facilities solution enabled RB&W to take control and reduce its spending on major components comprising its operating costs. In addition, Real Facilities was able to restructure the net rents over RB&W’s remaining lease obligation and secure significantly reduced rates for the extended term. This has allowed RB&W to realize savings at a crucial time, restructure its business and come out stronger and more competitive while maintaining production in Canada.

Real Facilities Provides Excellent Client Service

Locating new facilities and providing office design services, Real Facilities more than satisfied the client.

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 allotted to find, lease, and outfit new premises, Real Facilities immediately initiated its FLOW™ process. A detailed Needs Analysis, including our designers, to assess and evaluate future space requirements, was completed. Real Facilities then sourced the downtown real estate market and facilitated a 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 Real Facilities, the premises are being leased under extremely favourable terms.

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

“Real Facilities brought tremendous added value to the table with its ability to deliver in-depth financial, consolidating all available market information, as well as the ability to project manage the entire move.”
Robins Appleby & Taub llp, Leor Margulies, Partner

Cost Savings Comes with Lease Restructuring and Renegotiation

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., Although there was ample time remaining on the lease, limited space required an expansion. 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 to save considerable money on the rent.

Real Facilities Offers Client Ideal Space, Operation Efficiency and Future Growth Accommodation

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.

“Our company deals with brokers around the world, but your service, attention to detail, market awareness, and precision timing in capturing opportunities were second to none.

Real Facilities was not simply transaction oriented, but focused on overall client services. It always placed our relationship ahead of the transaction.

Real Facilities’ ability to handle projects from beginning to end — including project management and post transaction services — offered us one available point of contact.

Your skillful professionalism, throughout the entire project — from site selection, lease negotiation, and overall project management, — was incomparable.”
John Tenanes, Sr. Director Real Estate Worldwide

Sport Alliance of Ontario

CLIENT PROFILE

Established in 1971, THE SPORT ALLIANCE OF ONTARIO (“SAO”) is a private, non-profit management organization representative of Ontario’s sports sector, including community, educational, and provincial sports-based organizations. It provides leadership and administrative support services to amateur sports and recreation organizations, and acts as their collective voice in Ontario. SAO’s clients include provincial sport organizations (PSO’s), provincial recreational organizations (PRO’s), multi-sport organizations (MSO’s), national sport organizations (NSO’s) and non-sport related clients. With an upcoming lease expiry, SAO engaged Real Facilities to represent it in finding and negotiating the best solution for its building relocation/lease renewal needs.

THE CHALLENGE

In looking at the project, two significant challenges were identified:

1. The SAO space is occupied by 56 provincial sport and recreation organizations that rent their office space from the SAO. These individual organizations occupied approximately 57,000 square feet of the overall 93,000 square feet of space leased by the SAO, including a cafeteria and print shop. It was clear from the outset that a significant challenge to this project would be building consensus among the many different stakeholders who may not have unified objectives. Real Facilities’ experience in this particular arena provided the SAO enormous confidence in Real Facilities’ ability to use their proven processes to bring about consensus among the groups.


2. As a private, non-profit management organization largely supported by funding from the government, the SAO did not have a government covenant, but rather short-term funding commitments insufficient in term to provide the sole support for a long-term lease agreement.

REAL FACILITIES’ RESPONSE

At the commencement of the process the SAO established a Building Future Planning Committee comprised of members of the 56 sport organizations to function as the liaison between the stakeholders and the SAO board on all issues related to the future of the building. Real Facilities undertook a thorough evaluation of the SAO’s administrative space requirements as well as that of the individual sport organizations.

Real Facilities completed a thorough evaluation of SAO’s occupancy costs and compared it to the occupancy costs in the different submarkets within the Greater Toronto and Surrounding Areas. They then searched for the large blocks of contiguous space required to house the SAO’s operations. A long list of approximately 50 buildings and properties were investigated prior to shortening the list to qualified properties, including properties in Oakville, Burlington, and Hamilton. Real Facilities thoroughly interviewed prequalified landlords prior to site visits at short-listed alternative buildings. Short-listed alternates, including the existing building, received a formal Request for Proposal that effectively marketed SAO’s tenancy and outlined a number of solutions. Real Facilities used it’s proven consensus building process to bring all 56 organizations to a common goal and unanimous decision regarding the optimal building to house the SAO.

The negotiating strategy, anchored in painstaking research and a fundamental understanding of the client’s business and operations, empowered Real Facilities to build a strategy that enhanced the SAO’s strengths and lessened any perceived weaknesses.

THE SOLUTION

Sport Alliance of Ontario is excited about its new location at Concorde Gate. The relocation has permitted SAO to decrease the size of its operations by approximately 25%, without any loss in functionality or increase in occupancy costs, as well as building signage with exposure to the Don Valley Parkway. Real Facilities’ Project Management Team had overseen the design, construction, furniture, and technology implementations for SAO’s new home.

"Please accept our sincere thanks and appreciation for the work that the Real Facilities team did to help us complete the Offer to Lease on our new facility.
“From start to finish it has been a pleasure to deal with each of you. Your advice and guidance helped the SAO to secure a facility that will be a wonderful new home for amateur sport for the next fifteen years. Edmond is also very pleased that it is a financially well-structured deal, providing us with a measure of financial stability going forward."
DOUGLAS R. ROSSER
Chairman, Sport Alliance of Ontario

The Art of Negotiation Proves to be One of Real Facilities Specialities

StackTeck

CLIENT PROFILE

StackTeck Inc. has been manufacturing, repairing and refurbishing injection moulds 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 StackTeck'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 a 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. The goal was to create negotiation leverage for StackTeck at the bargaining table.

THE SOLUTION

As planned, the landlord capitulated, taking 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.

"There is a card that I think says it all about Real Facilities and the way they work: 'Never Give Up...Go Over, Go Under, Go Around, or Go Through, But Never Give Up.'"
RANDY YAKIMISHYN President, StackTeck

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.

Stantec Consulting Ltd.

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.

REAL FACILITIES’ RESPONSE

The challenge was to identify optimal real estate locations that would satisfy Stantec’s financial and business needs while honouring 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 both in its Mission Statement and in its actions, was Stantec’s natural choice.

THE SOLUTION

By using its FLOW™ process, conducting a detailed needs analysis and leading 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 its 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 west 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 client 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 its 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.

“Thanks to Real Facilities, rapidly becoming a Green Building/LEED expert. Our new facility at Wellington and Spadina in Toronto will be fully compliant – a major step in our joint visions. The Real Facilities team were a pleasure to deal with. From the get-go, they provided us with the strategic counsel we required. Nothing was out of scope or additional. No detail went unnoticed. As an engineering firm, you can appreciate that even a millimetre is a lot. Real Facilities thinks the same way, and we look forward to a long relationship with them.”
Mark Mitchell, Regional Practice Area, Leader, North America, North East, Stantec Consulting Ltd.

“We decided to engage the services of Real Facilities because of their extensive experience facilitating consensus on consolidation strategies and negotiating leases. They consulted with us, managed the expectations of 27 stake-holders and executed the consolidation of our offices across the GTA with professionalism and precision.”
Brian Sirbovan, Senior Principal in Charge, Stantec

“Thanks again to Real Facilities for all their help with our office project. We knew it would be like herding cats — and we weren’t far wrong. Through the process, we actually created an ongoing awareness of the business issues we face. We are sold on their approach. And as for doing the deal, they are the best I’ve seen. They have a gift and very practiced skills.”
Alan Kennedy, Project Consultant, Stantec

THE SWATCH GROUP

The Swatch Group is an international group active in the manufacture and sale of finished watches, jewelry, watch movements and components. Swatch supplies nearly all components required by its nineteen watch brands, and Swatch companies supply movements and components to third-party watchmakers in Switzerland and around the world. Swatch Group is also a key player in the manufacture and sale of electronic systems used in watchmaking and other industries. Swatch employs more than 24 000 people in over 50 countries.

THE CHALLENGE

Swatch engaged the services of Real Facilities to evaluate its Greater Toronto Area real estate holdings, distribution network and repair facility in an attempt to manage its growing real estate costs. With two years remaining prior to expiry, the key challenge was to secure a long-term position in the market while simultaneously providing an exit strategy to accommodate changing business needs.

REAL FACILITIES' RESPONSE

Real Facilities took a very strategic approach to this requirement. A thorough analysis of Swatch's existing lease was completed together with indepth explorations of its operations and ongoing business strategy. Multiple scenarios were developed, including a potential relocation of operations to a new facility. Only at the appropriate time did Real Facilities engage in discussions with Swatch's existing landlord where the opportunity was presented to continue a long-term real estate relationship with flexibility built into the agreement.

THE SOLUTION

The strategy was successful. Real Facilities secured a five-year extension at below-market rates. Further Swatch obtained a termination provision that ensured flexibility with ongoing business strategies and planning.

"With a long history in our building, the prospect of being a ‘captive tenant' was of major concern to us. Real Facilities was successful in eliminating this issue and securing a renewal below our existing rates."

Nic Afloroaei
Director of Finance

Real Facilities FLOW™ Identifies Solution for Client

Using Real Facilities FLOW™ methodology, a Toronto Health Centre is given a solution that provides them with efficient, functional, and cost-effective management of its non-medical office requirements.

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 square feet. of third-party leased office space and had an expansion requirement for approximately 12,000 square feet.

REAL FACILITIES’ RESPONSE

Through Real Facilities’ detailed Needs Analysis, they 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.

The Real Facilities team offered innovative, skillful, and objective analyses with recommendations for incorporating short-, medium-, and long-term goals into our Master Plan.”
Eric J. Vandewall, Planning & Corporate Services

Unsolicited Offer Turns into Success Story for Client

When a legal firm was approached by a neighbouring tenant who wished to expand their space, the firm called on Real Facilities for advice. With 3 years remaining on the lease, Real Facilities knew that time was on the client’s side and were therefore able to renegotiate the lease at favourable rates.

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 to simultaneously 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 market 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 at competitive rents for 41,000 square feet.

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 square feet and needed to expand its space. Its goal was to achieve this without relocating. Eleven thousand square feet 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.

As testimony to the success of the original project, Tucows re-engaged Real Facilities in 2010 to renegotiate it’s lease for a further ten(10) years.

UNISOURCE CANADA INC.

Unisource Canada Inc. was formed in 1992 after a series of mergers and acquisitions. Subsequently, Unisource is now the premier Canadian distributor of printing, imaging and supply products. Its goal is to become the "Distributor of Choice" for its clients through the expertise of its associates.

THE CHALLENGE

Unisource engaged Real Facilities for a variety of business and real estate issues to facilitate its business development plan. The plan called for converting its industrial space to devote square footage for freezers/coolers. It also sought to maximize operational efficiencies, thereby reducing its real estate costs.

With a number of significant leases up for renewal, the greatest challenge for Unisource and Real Facilities was to balance new business while maintaining competitive lease negotiations to fund the freezer/cooler installations.

REAL FACILITIES' RESPONSE

Real Facilities undertook a study of Unisource's operational needs against its industrial real estate portfolio. The study focused on the markets with impending lease expirations as well as markets that required freezer/cooler installations. This study included a thorough review and audit of each lease and extensive consultation with each Unisource operations team to get a clear analysis and understanding of its business needs in order to facilitate its acquiring new business contracts.

THE SOLUTION

Real Facilities customized a competitive bidding platform for Unisource's tenancy. Its in-house engineering team developed highly technical specifications that would enable Unisource to relocate to any alternative facility. As a result, Unisource's landlords came to the negotiating table highly motivated to amend its terms regarding the existing facilities in order to maintain Unisource's tenancy.

Real Facilities successfully renewed leases on Unisource's 240,000-square-foot head office and distribution centre in Montreal, as well as those of its 220,000-square-foot and 85,000-square-foot distribution facilities in Calgary and Winnipeg, respectively. Consulting services and additional counsel was provided on the renewal and restructuring of Unisource facilities in Vancouver, B.C. Key features of these negotiations included rent reductions, energy cost savings, and tenant incentives for freezer/coolers and lighting upgrades. In addition, Real Facilities negotiated termination provisions to accommodate any future business needs.

"The strategic and operational needs assessment completed by Real Facilities ensured that our objectives were always the focus throughout the project. Its financial comparative analysis made the review process very efficient, which allowed me to spend more of my time on other business. I look forward to engaging Real Facilities on future projects."

Ray Kung
Vice President
Unisource Canada

Real Facilities Finds Solution with Month-to-Month Lease Option

When a multi-cultural broadcasting company needed to find a new location that would best reflect its vision, culture and image, Real Facilities started negotiating a monthly lease with the current landlord. Another satisfied client!

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 that offers 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 with the short-listed alternatives.

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, on time and on budget.

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, rundown, 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 its 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.

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, Real Facilities worked with Wardrop to secure a new 35,000-square-foot signature office location for its Mississauga operations. With the help of Real Facilities’ 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 Real Facilities’ pleasure to work with Wardrop and we continue to serve them in the next phase in its GTA real estate plan.

Workbrain

Workbrain is a leading provider of employee management software to large global corporations, providing 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 its 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 in negotiating leases from 26,000 to 42,000 square feet, 58,000 to 74,000 square feet and, most recently, to 96,000 square feet.

THE SOLUTION

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

ZIG

Zig is one of the leading idea companies in Canada, having grown from a start-up in 1999 to its current position as an industry thought leader. Zig began discussions with ACLC, a partner company through Zig's alliance with MDC Partners, in order to merge and integrate ACLC's 40-year success in building effective brand communications, its strong media capability and powerful digital platform into Zig's existing operations.

THE CHALLENGE

It was recognized very early in these discussions that the essential ingredient to any merger would be to consolidate both companies' Toronto operations into a single facility. Zig and ACLC engaged the services of Real Facilities to consult with the senior executives of the merged group to source all viable opportunities that could effectively accommodate their combined space requirements.

Both companies were interested in retaining and attracting employees and wanted to remain in the creative “Brick and Beam” market of Downtown West. They wanted to use the real estate solution to drive the benefits and the efficiencies of the merger to the bottom line. With significant term remaining on both Zig's and ACLC's lease obligations, any consolidation would likely require the disposition of one or both of the existing leases.

REAL FACILITIES' RESPONSE

Real Facilities immediately began an in-depth search of the Downtown West “Brick and Beam” markets, and with the help of its in-house planning and design group, Real Facilities was able to produce several different planning models to merge the two companies into one of their existing buildings. With an extremely limited supply of market opportunities to accommodate the combined requirements, Real Facilities approached individual building owners, including Zig's and ACLC's current landlords, to ascertain and provide different yet creative space solutions. Real Facilities' in-depth search and analysis was successful in creating several solutions. A few of these solutions required capital investment on the part of the owners and a key business driver was to keep up-front capital expenditures to a minimum.

THE SOLUTION

Real Facilities successfully negotiated with Zig's existing landlord to use the newly created merged entity as the impetus for the landlord to reinvest in the building, upgrade all building systems and elevators, change the windows and rebrand the property as the “Zig Building.” The solution accommodated the combined space requirements of both Zig and ACLC on a completely “turnkey” basis with no capital expenditure on the part of the tenant at very favourable rental rates.

Zig and ACLC announced their merger in June 2008 with the integration staff beginning in late 2008 and early 2009.