Q1/2017 Oakville-Burlington-Hamilton Commercial Real Estate Update 3450 HARVESTER ROAD Acted for the Landlord 37,000 SF Office Lease RESTORATION CLAUSES > MUST-HAVES FOR LANDLORDS, NEVER-HAVES FOR TENANTS CONDITIONALLY SOLD For most Tenants, the Restoration Clause in a commercial real estate lease appears harmless, and typically doesn t get much attention. After negotiating with the Landlord on the Offer, the Tenant is anxious to finalize the Lease Agreement, and focus on taking possession of the space for its business operations....con t. on page 2 58 Bigwin Drive, Hamilton 41,760 SF on 2.98 acres Conditional deal within two days of listing Acting for the Seller COLLIERS SPECIALISTS IN OAKVILLE-BURLINGTON-HAMILTON DOUG MURRAY*, SIOR Vice President +1 289 266 1010 Burlington, ON doug.murray@colliers.com BRYAN FALDOWSKI*, CNE Vice President +1 289 266 1009 Burlington, ON bryan.faldowski@colliers.com
...con t. from page 1 The reality is that the Restoration Clause can be a ticking time bomb for a Tenant upon the end of the lease. A Restoration Clause legally obligates a Tenant to restore at its cost, at the Landlord s request (and prerogative), the premises back to the condition it was in before possession of the space by the Tenant. For a Tenant this can result in a very costly going away present to the Landlord should they exercise their right. In many cases, a Tenant can negotiate the teeth out of this provision or have it deleted in its entirety. In many of the cases the Landlords won t require Tenants to restore the space because a subsequent Tenant may benefit from the leftover improvements. However, given the potential costs down the road, it is imperative for Tenant s to pay special attention to this area of the lease. If a Tenant is already bound by a Restoration Clause, they may consider having their realtor attempt to renegotiate that area of the lease upon extension / renewal. From the Landlord s perspective, it is more important than ever to obtain restoration provisions in their leases. Office space is the best example of how Tenant design preference has changed, and designs / buildouts are becoming much more specialized to their business. The days of generic buildouts of predominantly private offices are gone. For occupiers in many industries, companies have a myriad of unique space configurations and improvements that will be of zero use to other Tenants. In these cases, there will be high impetus by potential Landlords / Owners to ensure that a Restoration Clause makes its way into the commercial lease. Having the option to exercise this right, or not exercise it, is key for a prudent Landlord. In many cases, a Landlord may not know at the time of Lease Execution, which specific improvements may or may not have imputed value to other Tenants until close to the end of the lease term. Landlord s should also strongly consider the size of the security deposit they are holding, and if it will be enough to complete the make-good provisions of the lease, if the Tenant is in default or goes bankrupt. Conclusion? Tenant, or Landlord, the more complex the improvements, the more attention to be paid to Restoration Clauses.
FEATURED LISTINGS INDUSTRIAL 1295 Cormorant Road, Ancaster 4 sizing options available: 45,000 SF (warehouse only) 57,800 SF (warehouse + 12,800 SF office) 51,400 SF (warehouse + 6,400 SF office) 15,200 SF (3rd floor office only) Dock & drive-in level loading 26 clear height Site Plan approved & shovel ready Can deliver occupancy 6-8 months from Lease signing Lease Rates: $8.95 to $9.95 PSF Net; TMI: $4.50 (2016) collierscanada.com/21320 OFFICE / COMMERCIAL 83 Reynolds Street, Oakville Approximately 5,970 SF available 4 floors of rentable space Beautiful rooftop patio High-end office finishes Steps away from many top restaurants & shops within the downtown Oakville core Available June 30, 2017 (floors 2/3) Lease Rate: $22.00 PSF Net; TMI: $12.00 PSF (2016) collierscanada.com/21473 LAND Great Lakes Business Park, Oakville Final Phase within the Great Lakes Business Park Sites D, E, X available Development land sites of 5 to 6.5 acres Zoned, serviced & shovel-ready Halton Region s most prestigious business park Great access to highways, transit & hundreds of amenities Steps from hundreds of shops, restaurants & amenities Seconds from Hwy 407 & minutes from the QEW Asking Prices: Call LBO for details collierscanada.com/20761
INDUSTRIAL & LAND LISTINGS AVAILABLE > OR LEASE 4041 North Service Road, Burlington 4901 Palladium Way, Burlington 563 Barton Street, Stoney Creek Apx. 55,835 160,000 SF, divisible SF, divisible to 27,035 to 10,000 SF SF 28 Up to clear 9 dock height doors; 22 clear height Landlord QEW exposure will build & signage 5% office opportunity to suit Lease Rates: $5.75 to $6.75 PSF Net collierscanada.com/14467 collierscanada.com/6067 12.86 acres available Zoned, serviced & shovel-ready site Seconds from Hwy 407 & the QEW Asking Price: $8,950,000 collierscanada.com/18021 30,000 SF, divisible to 15,000 SF Dock & drive-in loading; 18 clear height High-profile exterior signage opportunity Lease Rate: $6.50 PSF Net collierscanada.com/21102 1219 Corporate Drive, Burlington 520 Nash Road, Hamilton 8800 Garner Road, Niagara Falls 17,600 SF, including 300 SF shop office 3 cranes (1 x 5 ton, 2 x 3 ton) 30 clear height Lease Rate: $6.50 PSF Net collierscanada.com/13171 40,535 SF on 3.26 acres 5 drive-in doors; 27-55 clear height Turnkey waste processing facility Asking Price: $3,900,000 collierscanada.com/19390 66.75 acre waste disposal site 12,000 SF industrial building on-site Great QEW access; Close to U.S. Border Asking Price: $5,000,000 collierscanada.com/19391 590 South Service Road, Stoney Creek 2545 Barton Street East, Hamilton 13-23 King Street East, Stoney Creek OR LEASE Approximately 16,000 SF remaining 1 drive-in door; 16 clear height Excellent QEW exposure & access Lease Rate: $6.50 PSF Net collierscanada.com/4017 15,960 SF certified freezer building Dock & drive-in loading; 19 clear height Excess land for outside storage Lease: $11.95 PSF Net; Sale: $2,395,000 collierscanada.com/20611 13,778 SF on 0.83 acres Redevelopment opportunity; CA1 zoning Minutes to the Red Hill Valley Parkway Asking Price: $2,200,000 collierscanada.com/20691
INDUSTRIAL STATISTICS > BURLINGTON & OAKVILLE Submarket Snapshot > Burlington Submarket Snapshot > Oakville Historical Performance and Forecast > GTA West *Forcasted Data
OFFICE LISTINGS AVAILABLE > OR LEASE 845 Harrington Court, Burlington 1349 Sandhill Drive, Ancaster 1400 Cornwall Road, Oakville OR LEASE 2,326 SF to 8,076 SF available Various unit sizes & configurations Excellent value; Professional Landlord Lease Rate: $15.50 PSF Gross collierscanada.com/20239 800 SF & 2,600 SF units available Prestigious Ancaster Business Park Private offices & in-suite washroom Lease Rate: $20.00 PSF Gross collierscanada.com/21475 Two units; 1,138 SF & 2,349 SF One unit offers two floors of space High-end finishes; Plenty of parking Asking Rates: Call LBO for details collierscanada.com/9993 & 19569 3425 Harvester Road, Burlington 1445 Ontario Street, Burlington 3450 Harvester Road, Burlington 824 SF to 2,993 SF available Combination of office / service retail First & second floor space Lease Rate: $12.00 to $14.00 PSF Net collierscanada.com/19740 2,089 SF of freestanding office space 5 private offices; On-site parking Beautiful downtown Burlington location Lease Rate: $20.00 PSF Net collierscanada.com/21479 Approximately 17,500 SF remains High parking ratio 4.6:1,000 SF Excellent exposure; Signalized entrance Lease Rate: $13.00 PSF Net collierscanada.com/18054 Casablanca Commercial Centre, Grimsby 4900 Palladium Way, Burlington READY FOR OCCUPANCY 1660 North Service Road, Oakville OR LEASE 1,200 SF to 15,940 SF units (contiguous) Brand new Class A office development Prominent exposure onto QEW Lease Rate: Call LBO for details collierscanada.com/16218 Up to 15,000 SF of office/commercial Units divisible down to 1,000 SF Abundant surface parking Lease Rates from: $18.95 PSF Net collierscanada.com/5019 Two units; 2,000 SF & 2,900 SF One unit offers two floors & elevator Excellent location with QEW exposure Asking Rates: Call LBO for details collierscanada.com/20558 & 20567
OFFICE STATISTICS > BURLINGTON & OAKVILLE 24 Month Trend > Burlington 24 Month Trend > Oakville Submarket Snapshot > Burlington Submarket Snapshot > Oakville (SF) (SF) (SF) (SF) (PSF) (PSF) (PSF) (PSF) (PSF) (PSF) Available Supply Split & Gross Rent > Burlington Available Supply Split & Gross Rent > Oakville
COMMERCIAL LISTINGS AVAILABLE > OR LEASE 3430 Fairview Street, Burlington 474 Iroquios Shore Road, Oakville 100 Centennial Parkway, Stoney Creek 36,855 SF over 3 levels on 1.3 acres Ideal for owner-occupier or investor Many co-tenancy & demising options Asking Price: Call LBO for details collierscanada.com/19366 39,693 SF over 2 levels on 1.68 acres Ideal for owner-occupier or investor Many co-tenancy & demising options Asking Price: Call LBO for details collierscanada.com 24,260 SF over 3 levels on.635 acres Ideal for owner-occupier or investor Many co-tenancy & demising options Asking Price: Call LBO for details collierscanada.com 635 Upper Wentworth Street, Hamilton 11-15 Cannon Street West, Hamilton 575 River Glen Boulevard, Oakville 33,882 SF over 2 levels on 1.5 acres Ideal for owner-occupier or investor Many co-tenancy & demising options Asking Price: Call LBO for details collierscanada.com 0.156 acre redevelopment site Minimum 6-storeys mixed-use possible Environmental & Architectural completed Asking Price: $2,900,000 collierscanada.com/21480 1,120 SF available Well-kept plaza; Professional Landlord Ideal for medical, retail or service uses Lease Rate: $29.00 PSF Net collierscanada.com/21467 4903 Thomas Alton Blvd., Burlington 257 Randall Street, Oakville SOLD 2501 Hampshire Gate, Oakville LEASED Up to 15,000 SF of office/commercial Units divisible down to 1,000 SF Abundant surface parking Lease Rates from: $18.95 PSF Net collierscanada.com/5018 Commercial Sale 3,284 SF on.124 acres Acted for the Seller 3 commercial units Leased in last year 17,400 SF total Acted for the Landlord
INDUSTRIAL & OFFICE STATISTICS > GTA WEST 18 Month Trend > Industrial 24 Month Trend > Office Submarket Snapshot > Industrial Submarket Snapshot > Office Market Profile > > The GTA Market has a total industrial inventory of 805,859,824 SF and office inventory of 47,869,367 SF. > > TTC, VIVA, MiWay, Oakville Transit and Burlington Transit bus networks service the GTA West submarkets and GO commuter rail access through Kitchener, Milton and Lakeshore West lines. > > Market amenities include regional and international connections through Pearson International Airport, as well as the Ontario government designated urban growth region, Mississauga City Centre.
RECENT TEAM TRANSACTIONS 845 Harrington Court, Burlington 3375 North Service Road, Burlington 566 Arvin Avenue, Stoney Creek LEASED LEASED LEASED 2 industrial units & 1 office unit Leased 7,627 SF industrial & 4,252 SF office Acted for the Landlord 2 industrial units Leased 1 office unit now Conditionally Leased 8,904 SF industrial & 5,083 SF office Acted for the Landlord 37,000 SF industrial Lease Prestige industrial space Acted for the Tenant 590 South Service Road, Stoney Creek LEASED 4903 Thomas Alton Blvd., Burlington LEASED 3100 Harvester Road, Burlington LEASED Industrial Lease 30,000 SF Acted for the Landlord 3 office units Leased in last year 4,390 SF total Acted for the Landlord 3 industrial units Leased in last year 42,259 SF total Acted for the Landlord 1170 Invicta Drive, Oakville SOLD 2275 Upper Middle Road East, Oakville LEASED 1200 Burloak Drive, Oakville SOLD Investment Sale 170,000 SF Acted for the Seller Office Lease 7,240 SF Acted for the Tenant Industrial Sale 62,000 SF with high office ratio Acted for the Seller
INDUSTRIAL & OFFICE SUMMARY > GTA WEST Industrial Market The GTA west industrial market experienced positive net absorption of 637,337 square feet, which was highest amongst all other markets in Q4. Although there was an increase in new supply of 445,576 square feet throughout the GTA West, it was readily absorbed. The asking net rent continues to rise within the GTA West with a current average net rent of $6.15 per square foot. Office Market The GTA West market experienced positive absorption of 188,114 square feet this quarter, the highest in the GTA. The GTA West still has the highest availability rate compared to all other markets at 12.8 percent, but it decreased for the first time in a year. Asking gross rent has increased by over $2 per square foot in the GTA West over the past year and is now more than $30 per square foot.
WHY CHOOSE OUR TEAM > REGIONAL EXPERTS No other commercial real estate team covers the Oakville-Burlington-Hamilton submarket as extensively. Past 24 Months > Team Deals Multi-Asset Specialists COLLIERS SPECIALISTS IN OAKVILLE-BURLINGTON- HAMILTON DOUG MURRAY*, SIOR Vice President +1 289 266 1010 Burlington, ON doug.murray@colliers.com Hamilton 30% Oakville 30% Investment 15% Burlington Burlington Land 30% Industrial 40% 10% Industrial 40% Office / Office Commercial / 35% Diversified Representation BRYAN FALDOWSKI*, CNE Vice President +1 289 266 1009 Burlington, ON bryan.faldowski@colliers.com JENNIFER BYERS Client Project Coordinator +1 289 266 1014 Burlington, ON jennifer.byers@colliers.com Tenant Tenant / Buyer / Buyer 45% 45% Landlord / Landlord / Seller Seller 55% 55% COLLIERS INTERNATIONAL OFFERS A FULL RANGE OF REAL ESTATE SERVICES TO VIEW OUR REPORT ONLINE, VISIT: WWW.BURLOAKREPORT.COM TEAM PRODUCTION (PAST 12 MONTHS) 61 Transactions Over 3,325,000 SF Over $93,150,000 Value Sales & Leasing Investment Services Tenant Representation Site Selection Land Acquisition/Disposition Appraisal Tax Advisory/Appeal Construction Management Project Management Financial Analysis Built to Suit Portfolio Management COLLIERS INTERNATIONAL 1122 International Blvd., Suite 102 Burlington, ON L7L 6Z8 www.collierscanada.com * Sales Representative ** Broker This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2017. All rights reserved. Colliers Macaulay Nicolls Inc., Brokerage.