Frequently Asked Questions
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Why should my company engage an experienced real estate advisor?
The landlords have professional representation looking out for their best interests; your company needs the same. Your Avison Young broker will create a competition for your company's tenancy in the marketplace among landlords. This often results in a company paying lower gross occupancy costs in the final lease agreement reached.
Why do you recommend an office tenant sign a mandate letter with one specific advisor?
Signing a mandate letter with a licensed agent or broker ensures that you will have one advisor working hard to represent your company in the marketplace. He or she will take ownership of your company's needs and generate a competitive process among landlords for your company's lease. Talking to several brokers simultaneously, without committing to work with any one specifically, does not provide any one person with an incentive to look out for your company's best interests.
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How are Avison Young's advisors compensated for their time representing my company?
The landlord with whom you eventually execute a lease usually pays your advisor. Compensation is typically consistent throughout the marketplace (rarely does one landlord pay substantially more than another to brokers) and is based upon the size of space you lease, and the length of term. Having a signed mandate letter from your company typically ensures an advisor that he or she will be paid by the landlord once your lease is complete.
What is a mandate letter? What do I agree to within it?
A Mandate letter allows your advisor to better understand the specific needs of your company. The letter specifies that your company agrees to work with the advisor exclusively regarding your office lease, whether it is a renewal or a new space.
How large does my company have to be before we should engage the services of Avison Young?
With a commitment to understand the needs of our clients before we begin our assignments, our team covers all aspects of the office spectrum. From small independent companies and decisions to complex multi-location transactions, Avison Young is able to handle any size of need.
Can an Avison Young advisor assist me with my company's renewal?
Yes. Advisors are licensed real estate agents who can be engaged to negotiate a renewal on behalf of a tenant; they are typically compensated by the landlord for this effort, similar to the process for a new lease. Note: a good advisor will always analyze renewal as one of your overall options.
How does Tenant Representation work?
Tenant Representation means that your advisor works exclusively for you and therefore poses no conflict working with you on your office lease. The service is delivered by Avison Young brokers who subscribe to our philosophy, and are ethical, hardworking, intelligent, educated, highly trained, team-orientated professionals.
How much time should I allow for the process of looking for new space?
Avison Young prefers to start at least 12-18 months prior to lease expiry. The process can take longer if a build-to-suit (new construction) is the best option for your company. If insufficient time exists, your advisor can often negotiate a short term extension with your landlord to provide more flexibility.
I'm new to negotiating real estate deals for my company, can you tell me the typical step-by-step process?
This will vary slightly depending upon your company's needs and the individual advisor you select. However, here is a general outline
- Interview and select an advisor who is a licensed real estate agent (broker) in your province. You will be working closely with this person so make sure you have a good rapport; also ensure that this person has adequate time to devote to your company.
- After you sign a mandate letter, this advisor will work with you on a "needs analysis" to outline your company's needs at a general level. This will likely include the number of employees, how many individual offices are required, the amount of shared space (board rooms, kitchen, a lounge, etc.). This step might include an analysis of owning versus leasing and renewal versus relocation. And your location options may also be considered such as downtown or suburbs.
- Your advisor will translate this into real estate terms, and create a specification sheet for your company.
- This specification sheet will be used as a guide to identify all available options suitable for your company.
- Together with your advisor, you will review and short list the options, typically touring the most promising buildings.
- Your advisor will then prepare and submit a Request For Proposals to the landlords of the preferred options.
- Based on responses from the RFP, you will choose your preferred option and your advisor will negotiate terms with this landlord.
- Once terms are agreed to, a lease will be executed
- Finally, the advisor will provide you with a detailed summary of the transaction for your company records.
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My company has multiple facilities across North America and even in Asia and Europe, can Avison Young help me with all of my real estate?
Yes. We work with numerous clients with multiple locations and can provide real estate transaction and advisory services world wide. Avison Young works across Canada, and with our US and worldwide affiliations with the Grubb & Ellis Global Alliance, we have the network to represent your company globally.
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