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Turner Drake & Partners Ltd.
6182 North Street
Halifax, N.S.
B3K 1P5
Canada

Tel.: (902) 429-1811
Toll Free: (800) 567-3033
Fax.: (902) 429-1891

Suite 221
12 Smythe Street
Saint John, N.B.
E2L 5G5
Canada
Tel.: (506) 634-1811

Suite 11
109 Richmond Street
Charlottetown, P.E.
C1A 1H7
Canada
Tel.: (902) 368-1811

35 York Street
St. John's, N.L.
A1C 5M3
Canada
Tel.: (709) 722-1811

4th Floor
111 Queen Street East
Toronto, ON.
M5C 1S2
Tel.: (416) 504-1811

E-Mail: tdp@turnerdrake.com
Internet: www.turnerdrake.com

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# Wednesday, May 5, 2021


After listing a property for sale, you receive an offer from a prospective buyer. Then, before you’re able to present the offer to your seller-client, a second and third offer arrive with all of the buyers and their agents impatiently waiting for answers.


While handling multiple offers requires more diplomacy than handling a single offer, from a business standpoint there is really little room for complaint here. You have an attractive listing, which has a good chance of selling quickly, and your marketing efforts are paying off, which should please the seller.


However, there is plenty of room for problems if you don’t handle the intense demand for your listing with diligence and fairness to all – your seller-client and the prospective purchasers.

 


Verbal Offers Are Not Competing Offers

All offers must be presented in writing. If a seller’s agent is presented with a verbal offer, the seller must be told what was offered and the buyer’s agent must be instructed to put the offer in writing in order to be considered.

 


Disclosure to the Buyer

In Nova Scotia, the decision to disclose the existence of competing offers to buyers is entirely up to the seller.

Should the seller receive competing offers, the seller’s agent should:

  • inform the seller immediately;
  • recommend the seller review each offer prior to making a decision;
  • disclose the presence of competing offers to the buyers’ agents if the seller agreed to do so, however the content of the offers must remain confidential;
  • attempt to have all offers presented to the seller in the same time frame. The seller can delay the presentation by providing written consent; and
  • advise the seller of their options, such as:
    • accept one offer, reject all others;
    • counter one offer and set others aside pending the result;
    • reject all offers;
    • accept more than one offer with any offers after the first as back-up offers. Any back-up offers must remove the seller’s obligation from the first contract when moving on to the next through a condition included in the counter offer, such as “seller’s acceptance of this back-up offer is subject to the seller ceasing to be obligated in any way by [date] under the previously accepted purchase contract. This condition is for the sole benefit of the seller.”

 

Representing Buyers

The buyer’s agent has a duty to disclose competing offers and any terms that are known to them, but ultimately buyers might not be made aware of competing offer situations; that decision rests with the seller. If the seller does disclose that the buyer is in a competing offer situation, the buyer’s agent should:

  • immediately inform the buyer;
  • advise the buyer of the seller’s options;
  • ask to personally attend the offer presentations; and
  • advise the buyer of their options, such as:
    • increase the offer prior to presentation;
    • leave the offer as it is;
    • withdraw the offer; or
    • reconsider the fixtures, chattels, terms and conditions of the offer prior to presentation and have these changes reflected in writing.

 

Tips for Buyers

Once the buyer is made aware that they are in a competing offer situation, they may want to increase the offer price and/or reconsider a term or condition in effort to compel the seller. Financing and inspections are both examples of conditions that buyers could remove in effort to improve their offer. Doing so however, increases the level of risk for the buyer.

 

Price:

What can the buyer realistically offer on the property? Is the property appropriately valued? Buyers should understand the long-term risks of increasing their offer price and what impact it could have on their financials. Further, buyers should understand that increasing their purchase price above the asking price does not guarantee that their offer will be successful.

 

Property Inspection:

Buyers may be tempted to remove the inspection condition in an effort to present a more appealing offer to the seller, but there could be major risks involved in doing so. Property defects and major repairs are an expensive reality in many older buildings and foregoing the inspection will prevent the buyer from having a clear understanding of the current state of the property. Buyers are recommended to use extreme caution when deciding to remove an inspection clause for this purpose.

 

Financing Pre-approval:

If you don’t know exactly what you can afford, you may be looking out of your price range and wasting your time. You may also be looking below what you would have qualified for and not getting the right investment property for you.

If you start off by getting a pre-approval on the other hand, you can sort by price, identify the right neighbourhoods, and find your desired property much faster.

 

Offer & Acceptance:

There is no contract until all parties agree to its written terms, sign their names to express that agreement and communicate acceptance to the offering party. Until then, you have nothing more than a stack of offers – not a stack of contracts – any one of which could appeal to your seller-client. Do not advise a buyer or a buyer’s agent that the seller has accepted the buyer’s offer until the seller has signed the offer. A seller who orally expressed a willingness to accept an offer has not yet accepted the offer and has no legal obligation to do so. Thus, no contract has been formed.

 

The Back-up Offer:

When one offer is accepted, your client may be willing to negotiate another as a “back-up”. Of course, this would require agreement by the second buyer and would require special language indicating that the back-up contract has no legal standing unless and until the primary contract is terminated.

 

Only One Winner:

Unfortunately, in the case of multiple offers for one property, there will be those that lose. Someone will walk away disappointed for not having been able to buy their ideal property, but if everything is handled in an equitable manner, the seller should NOT be the losing party, but should walk away with a deal that is in their best interest.



James Dunnett is a Consultant in our Brokerage Division and has extensive experience in handling complex leasing and sales transactions. If you need help managing your leasing requirements, or are interested in purchasing or selling a commercial property, James will be happy to assist you through every step of the transaction. Contact him at (902) 429-1811 or jdunnett@turnerdrake.com.

Wednesday, May 5, 2021 12:10:44 PM (Atlantic Daylight Time, UTC-03:00)  #    -
Atlantic Canada | Brokerage | New Brunswick | Newfoundland & Labrador | Nova Scotia | Prince Edward Island | Turner Drake
# Thursday, November 5, 2020

Photo Credit: istockphoto

The Asking Price is a critical element when listing a commercial property. If it is too low you may under sell your property. If it is too high it will scare away prospective purchasers and the listing will go stale: it may then be necessary to withdraw the property from the market and re-introduce it at a later date, or alternatively reduce the price substantially to reignite interest. But while property sells at Market Value, owners often measure its worth in terms of Intrinsic Value. This can give rise to a difficult conversation between real estate broker and property owner.

 

Market Value is generally defined as "the most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus”. More specifically, market value is based upon a property’s Highest and Best Use. The Highest and Best Use of a property is the probable and legal use of land, or an improved property, that is physically possible (what can be physically built on the site?), legally permissible (what uses are permitted under the current zoning?), financially feasible (will the purchaser achieve an acceptable return within a reasonable investment horizon?) and maximally productive (what use generates the highest return?). Simply put Market Value is the highest price attainable assuming the property is expertly marketed to the widest pool of prospective, knowledgeable purchasers.

 

Intrinsic value is the owner’s perception of the inherent value of their property to them. This value can be based on the actual amount of money they have invested in the asset, any sweat equity by the owner, emotional attachment, or just their perception of current market conditions. Sometimes the property owner may be constrained by the debt burdening the property, or the net cash they need to realise on sale after paying capital gains tax and transaction costs.

 

How do you bridge the divide between Market and Intrinsic Values? It starts with the acceptance by both parties, broker and property owner, that they have a common goal… to sell the property on the most advantageous terms to the owner. Before we undertake to market a property for sale, we sit down with the owner (vendor) to go over the marketing plan for their property, the pricing strategy, and the listing agreement, to ensure the vendor understands the selling process and each party’s obligations under the contractual arrangement. Since an appropriate asking price is critical, we research the property, its zoning and planning considerations, and sale prices of comparable properties, to develop an asking price based on the Market Value. Because Intrinsic Value frequently differs from Market Value the vendor may have price expectations that cannot be realised on sale and it may be better to withhold the property from the market until prices increase…. realising of course that there is always the risk that prices may fall too, as is the case currently in some market sectors. However if the owner is serious about selling, it is imperative that the asking price be reflective of Market Value plus a negotiating buffer (every purchaser likes to feel like they have negotiated a good deal for themselves). Otherwise, the overpriced property will sit on the market and become stigmatised: potential purchasers will wonder why it has been on the market for longer than is typical, if there is something wrong with the property, or will want to try to use the long marketing exposure as negotiating leverage. On the other hand if a property is reasonably priced and is properly exposed to the market, a vendor will have much better chance of consummating a sale at a price, and within a time frame, that optimises their sales transaction.

 

Reduce Stress: Live Longer


Selling your property, even commercial real estate, is rarely anybody’s idea of fun… so we have compiled a list of the difficult questions you meant to ask your real estate broker but were too embarrassed, simply forgot… or did not know you should ask. Questions such as “I don’t want my staff to know I am selling: what can I do to keep it quiet?” or “I am already talking to a prospective purchaser: do I still have to pay you a commission if I sell to them?” and even “Why do I need a real estate broker anyway?”. Better still we have provided our answers in the way we do best… frank, forthright and brutally honest! Call or email me, I will happily send them to you.



As Senior Manager of our Brokerage Division, Ashley Urquhart assists both landlords and tenants meet their space requirements, and vendors and purchasers optimise their property portfolios. For more real estate brokerage advice, you can reach her at aurquhart@turnerdrake.com or (902) 429-1811.

Thursday, November 5, 2020 11:25:55 AM (Atlantic Standard Time, UTC-04:00)  #    -
Atlantic Canada | Brokerage | New Brunswick | Newfoundland & Labrador | Nova Scotia | Prince Edward Island | Turner Drake
# Wednesday, April 22, 2020

No one wants to own a “dirty” property; it is important to both Buyer and Seller that they understand how a sale can be impacted by the discovery of contamination. From the Seller’s standpoint, they may need to remediate the property prior to selling. Remediation is costly and time consuming – it can take a year or longer to test the soil and groundwater, adequately address the contamination, and ensure that the site is fully remediated. The Seller will incur carrying costs, such as property taxes, during the remediation.

There will be other problems too, in addition to the time delay. The Buyer’s lender will rarely finance a dirty property and will almost always require a Phase 1 environmental assessment to confirm that it is not contaminated. In most cases it will be the Buyer who commissions the Phase 1 report. This consists of historical research of site… do past uses point to possible contamination from chemicals or hydrocarbons?...  was the property previously used to house a gas station?... were manufacturing or service uses such as dry cleaning, sand blasting (lead paint), etc. conducted on the property?... The term “mad as a hatter” originates in the fact that hat manufacturing utilised mercury as part of the process, with unfortunate consequences for the participants. The Phase 1 audit will also investigate existing and surrounding property uses that may have contaminated the site; for example a bus depot whose leaking underground storage tanks have resulted in contamination of the ground water and its concomitant migration into surrounding “downstream” properties. It will also consider the building materials used on site…. are the plaster, or ceiling tiles, likely to contain asbestos; the fluorescent lights, PCBs; the paint, lead; what other horrors lurk in the building structure? If anything suspicious comes out of this research, the Phase 1 report will recommend a more invasive Phase 2 investigation requiring drilling or removal of building material for laboratory investigation.

A Phase 1 report can cost anywhere between $1,200 and $3,000 for most small to medium sized properties. Since a Phase 2 environmental assessment comprises soil and ground water testing, more intrusive testing and the use of heavy equipment, this study can easily cost over $20,000. Should the Phase 2 study identify contaminants, the level of contamination and the intended use of the property by the Buyer, will determine the degree of remediation required. If contaminants exceed the maximum allowable level, the Department of Environment has to be notified and they will issue an order to remediate the property within a specified timeline.

Remediation can be time consuming. Once the contaminated soil has been removed from the property, an environmental consultant will set up “test events” whereby the soil will be re-tested to confirm that the remediated property falls within the specified guidelines. These test events usually occur once every three months over a year long time period. However, if the groundwater below the property is not static, the test events may register that it is “clean” during one test and then show contamination at the next test event, as the groundwater migrates back and forth.  

The intended use of property also determines the overall impact of the contamination and the level of required remediation. For example, a former gas station site  to be sold for apartment development requires a higher level of remediation than a site to be utilised for industrial purposes…. properties intended for residential use are held to a higher environmental standard than properties to be occupied for commercial uses. 

Since the Seller is in the chain of title they may be held liable for contamination after the property has been sold… even though they may not be the source of the contamination! This is why mortgagees, such as banks, will rarely foreclose contaminated property… and why governments would be wise to avoid expropriating pulp mills (Government of Newfoundland take note!). It is therefore to the Seller’s advantage to establish the present extent of contamination (if any) to safeguard themselves for the future. If a property is sold and is subsequently discovered to be contaminated, the Seller will need to establish that it was “clean” when they sold it, otherwise they could be held liable for the contamination even if they did not cause it.

A Buyer is similarly advised: If they purchase a property without undertaking the proper environmental assessment to confirm that the property is “clean”, they are at risk; they could be held liable for the contamination, even though they did not cause it, and be ordered to remediate the site at significant cost. Unless the Buyer is a risk seeker they should invest in hiring an environmental consultant as part of their overall property purchase due diligence.

The moral of this story? Don’t be penny wise and pound foolish! It matters not whether you are a Buyer or Seller: a few thousand dollars spent on an environmental audit can save you hundreds of thousands in potential remediation costs. 

Ashley Urquhart is the Senior Manager of our Brokerage Division.  She has a vast network of contacts and would be happy to assist you with all your leasing needs. If you would like more information, please feel free to contact Ashley at (902) 429-1811 or aurquhart@turnerdrake.com.

Wednesday, April 22, 2020 9:58:12 AM (Atlantic Daylight Time, UTC-03:00)  #    -
Atlantic Canada | Brokerage | New Brunswick | Newfoundland & Labrador | Nova Scotia | Prince Edward Island | Turner Drake
# Friday, March 29, 2019

You are a tenant looking for commercial space to lease. You start your search by checking the local Kijiji ads and maybe check with a few colleagues when you realise that perhaps you are in over your head. One ad is asking for $14/ft.² net plus operating and taxes, while another is asking $3,500 per month gross. How do you compare these two rents?  

Or perhaps you are a new landlord, eager to fill up your new investment property and start making a return. You are not sure what to charge for rent, but you want to ensure that all of your operating expenses are recovered at the end of each operating year and you are not out of pocket for any expenses.

First, let’s summarise the rental terminology:

Net Rent: Often called “Base Rent”.  This is what you pay for the right to occupy a given space

Additional Rent: Often called “Common Area Maintenance (CAM) and Realty Taxes” or “Service Rent”:  This is the cost of operating a given space or property.  It includes such things as electricity, heat, garbage removal, snow clearing, etc.  It is typically paid for by the landlord and then recharged to the tenant on a per square foot basis.

Gross Rent: This is the sum of all rent paid (Net and Additional Rent).

In order to compare a net and gross lease, the rents must be converted to the same basis (ie: both must be compared on a per square foot basis, or both on a monthly rental basis).  For example: let’s say that a particular unit is 1,500 ft.2 and it is being offered at a Net Rent of $14/ft.² and CAM and Taxes of $11/ft.².  Converting this to a monthly rent is as follows:

 

($14/ft.² + $11/ft.²) X 1,500 ft.² = $37,500 annual or $3,125 per month.

 

Alternatively, if you are provided with a rental rate of $3,500 per month gross for a 1,500 ft.² space, converting this to a per square foot rent is as follows:

 

$3,500 per month X 12 = $42,000 per annum / 1,500 ft.² = $28.00/ft.²

 

Now that you know how to calculate and compare net and gross rental rates…which one is better?  A net lease or a gross lease?...well it depends which side of the lease you are standing on.  The main difference between a net and gross lease, comes down to who shoulders the risk of increasing operating costs.  Under a gross lease, a tenant has committed to a set amount of rent for the lease term.  If the operating costs increase during the term of that lease term, the landlord “eats” those costs, thereby cutting into his/her effective rent.  Under a net lease however, the Additional Rent charged for operating costs fluctuates throughout the term of the lease.  Since landlords are recharging the tenants for common area costs, any increases are simply passed on to the tenant.  Tenants may prefer a gross lease since it represents a steady and guaranteed rent, and no risk of increasing common area costs during the length of the lease.  Landlords on the other hand tend to prefer a net lease where there is a steady and guaranteed base rent, and any risk of increased expenses is simply passed along to the tenant.

Ashley Urquhart is the Senior Manager of our Brokerage Division.  She has a vast network of contacts and would be happy to assist you with all your leasing needs.  Feel free to contact Ashley at (902) 429-1811 or aurquhart@turnerdrake.com.

Friday, March 29, 2019 11:05:01 AM (Atlantic Standard Time, UTC-04:00)  #    -
Atlantic Canada | Brokerage | New Brunswick | Newfoundland & Labrador | Nova Scotia | Prince Edward Island | Turner Drake
# Monday, October 22, 2018

 Why Hire a Commercial Broker? How a Commercial Broker Adds Value in Real Estate Transactions

There are ample online and offline resources available at your fingertips to help you purchase or sell a commercial property on your own – so why hire a broker? If you have the time, negotiating skills, real estate market information, and understand your target market and how to reach them, you don’t!

However, unless you can say yes to all of the above, here is how a commercial Broker adds value to your transaction:

1. Your time is valuable.  Letting a Broker do the heavy lifting and deal with “tire kickers” allows you to focus on your business.

2. Brokers have the contacts and resources to market your listing or find you a suitable property, ensuring all opportunities are uncovered.

3. Brokers understand your target market and how to reach them.

4. Brokers do not have an emotional attachment to the property or transaction.

5. Brokers are often members of local real estate associations, which can provide you with access/exposure to the MLS system in addition to their own websites, social media platforms, and databases.

6. Brokers have the inside track on market data, sales transactions, planning considerations and players in the market who are looking to purchase or sell commercial properties. They can help you determine a reasonable price and can help maximise market exposure.

7. Brokers know how to properly measure a building and collect the property information required, such as any material latent defects that must be disclosed in a transaction, which can avoid future lawsuits.

8. Brokers prepare Purchase & Sale Agreements, Counter Offers, etc. on your behalf, saving you from hiring a lawyer to assist with these items.

So, once you’ve decided to hire a commercial broker, how do you choose which broker/brokerage to represent you? The short answer is to simply hire the broker with whom you feel most comfortable. There are many excellent commercial brokers locally, so meet with a few, ask them questions, and choose the broker you feel will best represent you, and who understands your wants and needs. Each commercial broker has their own strengths; it is up to you to determine which one is the best fit for your organisation. 


As Senior Manager of our Brokerage Division, Ashley Urquhart assists both landlords and tenants meet their space requirements, and vendors and purchasers optimise their property portfolios. For more real estate brokerage advice, you can reach her at aurquhart@turnerdrake.com or 1 (800) 567-3033.

Monday, October 22, 2018 10:44:48 AM (Atlantic Daylight Time, UTC-03:00)  #    -
Atlantic Canada | Brokerage | New Brunswick | Newfoundland & Labrador | Nova Scotia | Prince Edward Island
# Monday, March 30, 2015

Your current office space is no longer working for your organisation.  You are busting at the seams, unable to hire any help, otherwise setting up shop in the nearest broom closet.  Fortunately, your lease is nearing the end of its term and a refresh is in order.  You are currently located in an older, tired building, so you start the search for a new space… and somehow you got stuck taking the lead on this project with little real estate experience.

 

You decide you are out of your comfort zone so you turn to NAI Turner Drake for help.  After reviewing your space wish list, you are provided with a list of potential locations.  Some are currently built out with full offices, boardrooms, meeting rooms, kitchens, washrooms etc., but there is not one that completely suits your needs.  You feel the best location is in a brand new building, fresh on the market, so you can achieve the exact layout to maximise efficiency in your space.

 

You walk into the empty bay, typically with an unfinished concrete floor, exposed ceiling, unpainted gyproc walls and the HVAC, plumbing and electrical only running to your unit, not throughout.  The landlord provides a space planner to help you layout the office based on your requirements.  You reflect back on your recent kitchen renovation and think “Hey, this won’t be so bad”.  The space plan comes back and now it’s time to determine the budget… how much is this going to cost and how will it be paid? You are shocked, feeling rather light headed and fearing for your job when the quote comes back from the general contractor… “I could build a new house for that price!”.

 

The average cost to build out a typical office space is $60 per square foot.  This figure obviously fluctuates with the market and inflation; however we can use it as a starting point.  Typically, a landlord will include a tenant improvement allowance within the asking net rent to help offset these costs.  The remainder is to be paid by the tenant.  There are a few options: a tenant can cut a cheque for the entire amount (this can have an accounting benefit), the tenant may amortise the amount over the lease term and pay back to the landlord as part of the rental payments (this helps spread the costs over the lease term, but the landlord typically charges interest on this amount) and/or a combination of both options. The landlord will make these concessions based on the strength of the covenant of the tenant.

 

Construction items to consider when building a space from a raw state:

 

Partition Walls (Metal Studs and Gyproc):  Even in an open concept space, washrooms, meeting rooms, etc. must be partitioned from the main space.

 

Flooring:  Flooring can range from carpet tiles to laminate flooring to ceramic tiles and anything in between. Carpet tiles can be among the more cost effective flooring options, while ceramic and porcelain tile are among the more expensive flooring types.

 

Paint: Fortunately, paint is paint.

 

Ceiling Tiles: A suspended T-bar ceiling grid can help improve sound nuisances within an office.

 

Lighting: There are many lighting options available today, including more efficient LED lighting.

 

Electrical Distribution: In a new build, the landlord typically brings electrical into the unit, but in some cases it is the tenant’s obligation to install a transformer and then distribute the electrical throughout the unit (outlets, drops, etc.).

 

HVAC Distribution: Again, the landlord will run HVAC to the unit, but it then becomes the tenant's responsibility to distribute the HVAC throughout the unit. This will depend on the unit layout, an open concept office will require less distribution and diffusers than a fully built out space with all private offices.

 

Plumbing: The landlord will have a plumbing stack to the unit, but it then becomes the tenant’s responsibility to distribute throughout the unit. It is more cost effective to keep all plumbing in the same vicinity, as to avoid cutting into concrete to run pipes, significantly driving up construction costs.

 

Millwork (Kitchen, storage, etc.): Millwork comprises of kitchen cabinets, storage cabinets, washroom counters, etc. These items will depend on the space design.

 

All of these items add up.

 

Remember: the stronger your tenant covenant, the more concessions you can negotiate with a landlord.

 

 

 

Leasing and Sales Consultant, Ashley Urquhart, assists both landlords and tenants meet their space requirements, and vendors and purchasers optimise their property portfolios.

 

To learn more about Ashley, visit our Facebook page to see her Featured Consultant article!

Monday, March 30, 2015 2:50:38 PM (Atlantic Standard Time, UTC-04:00)  #    -
Brokerage
# Wednesday, February 11, 2015

As an existing tenant with a lease expiry date looming, your varied options (relocate, renew or resize) may seem intimidating. Here are some tips to consider:

Relocate

One of the first things to look at is what length of notice your current landlord requires in regards to your notice to renew or move on. This is a process that should begin anywhere from six to nine months prior to your lease expiry depending on the complexity of your move.

Some leases have clauses that specify how much notice is required. In some cases, if that notice period is missed you could find yourself in a delicate situation. If you get into an over-holding position some leases have the right to increase your base rent anywhere from 150% to 200%.

After determining the length of notice required, it is now time to decide: where do you want to be; what issues are critical to making a move; what costs (other than rental) are involved?

Renew

If the market is soft and is what is described as a “tenant’s market”, some landlords will look at renewing your lease earlier in order to guarantee a longer tenancy. A sound knowledge of market conditions (supplied by your broker or agent) will guide you through this process and outline what incentives the landlord will supply, i.e. paint, carpet, renovations, parking, etc..

Resize

If your growth has not gone as anticipated and you are looking to downsize, you will find that the majority of landlords are more than willing to accommodate your requirements, should you have a good relationship with your landlord.

If you are looking to expand because you are exceeding growth expectations, the landlord will be pleased to speak with you to determine if they have options in the current property or availabilities in other properties within their portfolios.

Overwhelmed by your leasing options? Call Russ (or any member of our Brokerage Division) at (902) 429-1811.

Wednesday, February 11, 2015 10:00:24 AM (Atlantic Standard Time, UTC-04:00)  #    -
Brokerage
# Thursday, August 7, 2014

No one wants to tell a client their space looks like a recent episode of Hoarders. However, it is essential to show a space in its best light to reduce the marketing exposure time and get the best price (rent) for your client.

Here are some tips to keep in mind when selling or leasing your space:

1. Clean Unit: There is nothing worse than walking through a cobweb, jumping back in fear that you have a spider crawling on your back, only to brush your good suit jacket up against a wall covered in gyproc dust. Tip: Take a duster and vacuum through the unit on a regular basis to ensure it is fresh and clean for each showing. 

2. Clean Washrooms: Believe it or not, people actually open the toilet cover while touring a space. Although pink is pretty, it is not so much when it comes in the form of a ring around a toilet bowl. Tip: Flush the toilet every few days to ensure the stagnant water does not leave a mark.

3. Fresh Paint: Let’s face it; some people cannot get passed the harvest gold paint! While it was modern in 1970, it is not anymore. Tip: Although it can be a bit of an investment, prime the walls (and ceiling if applicable) in a contemporary white colour. Not only will it enhance the appeal to potential tenants and purchasers, but it will help them envision their organisation’s color scheme and give the unit a fresh feeling

4. Flooring: Can you see the subfloor through the carpet? Are there multiple chips in the ceramic tile from accidentally dropping a heavy piece of equipment? Tip: If a good cleaning does nothing to improve the appearance of the flooring in the unit, I recommend removing it and leaving exposed concrete.

5. Garbage & Storage: While it is very tempting to use your vacant unit as a storage room for garbage, excess materials, for your own company etc… don’t. Tip: Leave the unit empty. It is hard for a potential tenant/purchaser to imagine themselves in a unit when it is full of clutter. Plus you will have to remove the garbage, excess material etc., for the incoming tenant/purchaser anyways so why move it twice.

6. Windows & Window Coverings: Do the blinds look as though they have been the latest victim of a cat attack? Are there finger prints, paint overspray or perhaps even a face print on the window? Tip: Ensure that the window panes are clean and only leave the window coverings up if they are in good condition.

7. Lighting: While it is tempting to turn the electricity off to a vacant unit, it is important to be able to see the space. Though we always bring a trusty flashlight, it can become a real safety issue for both the client and the agent touring the space if they have to feel their way around. Plus, it is not showing your space in its best “light”. Tip: Lights on! 

Advice given by Ashley Urquhart, Consultant in Turner Drake’s Brokerage Division and Manager of our Business Development Division. For more real estate brokerage advice, you can reach her at aurquhart@turnerdrake.com or 1 (800) 567-3033.
Thursday, August 7, 2014 12:04:36 PM (Atlantic Daylight Time, UTC-03:00)  #    -
Brokerage