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Specialty

Measuring your Commercial Property

In residential real estate room sizes are required, in commercial, it is less about room sizes and more about total square feet – and in leasing it is about useable and leasable area. If you haven’t already done so I strongly recommend having your space or property measured by one of a number of professional…

Commercial Leasing – is it TMI or TMIM?

Tenant Representation

To review, TMI stands for Taxes, Maintenance and Insurance, and on a net lease it allows the landlord to recoup direct costs of ownership from the tenant. Each year the costs are tallied and a new TMI charge is calculated. Some landlords want to charge for management as well, and slide in a management charge,…

Sale and Leaseback – better than outright sale?

We are seeing an increasing number of clients considering sale and leaseback, for many good reasons : A global manufacturer wanting to add a new production line costing $2million who owns their own building valued at $5.5million with significant equity tied up; A manufacturer who won a bid for a major supply contract but realized their working…

Repurposing a Specialty Property

I worked with a church group selling their property and given the size of the property, location and value of the land it seemed unlikely a church group was going to buy. Eventually, a non-profit community group was the successful buyer. Unfortunately the zoning in place at time of listing would have allowed the use, but…

Environmental Basics

Most commercial properties have at least some environmental risks. Beyond that statement it is a property by property situation. The most common problems come from past or present industrial uses or other hazardous uses like gas stations or dry cleaning plants. When you are buying it is advisable to at least consider a Phase 1 environmental report –…

Basics of Commercial Property Finance

As a licensed mortgage broker in Ontario I sometimes get involved in the financing of commercial properties. I usually do this as a convenience to my Martel clients rather than focus on financing as a main business line. Point 1 : Talk to your bank first. Most clients have an existing banking relationship with a…