You are using an outdated web browser. For optimal user experience and to get the most out of this site, please view this on a newer browser. Or you can click here to download Google Chrome.

Colliers International | Global Occupier Guide

Search

Toronto, ON

BOMA 96

Space Measurement Standard
SQMT
SQFT
Space Unit of Measure

CAD

  • Convert currency to:
  • ALL - Albanian Lek
  • ARS - Argentine Peso
  • AUD - Australian Dollar
  • BRL - Brazilian Real
  • BGN - Bulgarian Lev
  • CAD - Canadian Dollars
  • CLP - Chilean Peso
  • CNY - Chinese Yuan Renminbi
  • COP - Colombian Peso
  • CRC - Costa Rican colón
  • HRK - Croatian Kuna
  • CZK - Czech Koruna
  • DKK - Danish Krone
  • EGP - Egyptian Pound
  • AED - Emirati dirham
  • EUR - Euro
  • HKD - Hong Kong Dollar
  • HUF - Hungarian Forint
  • INR - Indian Rupee
  • IDR - Indonesian Rupiahs
  • ILS - Israeli new shekel
  • JPY - Japanese Yen
  • KRW - Korean Won
  • MXN - Mexican Peso
  • MAD - Moroccan Dirham
  • TWD - New Taiwan Dollar
  • NOK - Norwegian Kroner
  • PAB - Panamarian Balboa
  • PEN - Peruvian Sol
  • PLN - Polish Zloty
  • GBP - Pound Sterling
  • RON - Romanian Leu
  • SAR - Saudi riyal
  • RSD - Serbian Dinar
  • ZAR - South African Rand
  • SEK - Swedish Krona
  • CHF - Swiss franc
  • THB - Thai Baht
  • TRY - Turkish Lira
  • UAH - Ukrainian Hryvnia
  • USD - US Dollars
Financial Data Currency

No

Transfer Taxes

Notes:

Typically BOMA 96 standard for office with new developments typically BOMA 2017.

Office Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for skilled office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for office space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Typical Loss Factor

*

From rentable to useable square feet

Loss Factor Notes:

*Gross Up factor applied to usable area to calculate rentable area typically ranges from 10-15% for a full floor and 18-23% for multi-tenant floors.

Landlord Concessions

Fit-Out Concession

The Landlord typically provides a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

$20/sf-$80/sf

Typical range of fit-out contribution.

Fit-Out Cost Notes:

Allowance is typically provided, but on a case-by-case basis.



Figures are based on a 10 year lease.

Rent-Free Period

The Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

2mo.-12mo.

Typical number of rent-free months.

Rent-Free Period Notes:

If the building is successful, then often, there is no free rent.



Figures are based on a 10 year lease.

Tenant Rep Broker Fee (New Leases)

The Landlord typically pays the tenant rep broker’s fee.

Tenant Rep Broker Fee (Renewals)

The Landlord typically pays the tenant rep broker’s fee.

Lease Provisions

Lease Term

5yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

$14/sf-$33/sf

Estimated range for all additional charges per Square Feet.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Market typically quotes additional rent (realty taxes, operating costs and utilities) separate from net rent.



Low figure is based on suburban office buildings.



High figure is based on downtown Class A office towers.



HST of 13% is typically not quoted in the additional rent.

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

For sublease assignment may have minimum threshold requirements

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Statutory Subletting/Assignment Notes:

Almost always.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Case by case basis

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Case by case basis.



Typically equal number of anticipated months to release, unamortized TI's and commissions or 50-100% pre-paid rent. Must have a replacement tenant. If it is secured, it will include a penalty of 6-9 months + unamortized TI's and fees.

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Typically, first + last months gross rent. Security on case by case basis but typically involves deal costs in the form of an LC (TI's, commissions, etc) and may decline over time. If parent is foreign (typically US), a guarantee likely required.

Workplace

Regional Office Space

140sf-160sf

Typical Square Feet per employee (includes office square footage for employees and contractors).

Regional HQ Office Space

150sf-185sf

Typical Square Feet per employee (includes office square footage for employees and contractors).

Desk Sharing

Desk-sharing is not a common practice in the market.

Industrial Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for manuafacturing and warehouse/distribution office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for industrial space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Landlord Concessions

Fit-Out Concession

The Landlord typically provides a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

$1/sf-$4/sf

Typical range of fit-out contribution.

Fit-Out Cost Notes:

Tenant improvement encompassing office build-out or renovation, general improvements to warehouse (lighting, shipping doors).

Rent-Free Period

The Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

0mo.-2mo.

Typical number of rent-free months.

Tenant Rep Broker Fee (New Leases)

The Landlord typically pays the tenant rep broker’s fee.

Tenant Rep Broker Fee (Renewals)

The Landlord typically pays the tenant rep broker’s fee.

Lease Provisions

Lease Term

5yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically includes operating expenses (service charges).

Additional Charges

$3.25/sf-$4.75/sf

Estimated range in total for all additional charges per Square Feet.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

For sublease assignment may have minimum threshold requirements

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is still required.

Statutory Subletting/Assignment Notes:

Almost always.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Blend & Extend Notes:

Case by case basis

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Case by case basis.



Typically equal number of anticipated months to release, unamortized TI's and commissions or 50-100% pre-paid rent. Must have a replacement tenant. If it is secured, it will include a penalty of 6-9 months + unamortized TI's and fees.

Obligations Upon Lease Expiration

Basic broom clean condition and removal of special installations.
Dilapidations.
Complete restoration to shell.
Other

Tenant Obligation Notes:

Typically, first + last months gross rent. Security on case by case basis but typically involves deal costs in the form of an LC (TI's, commissions, etc) and may decline over time. If parent is foreign (typically US), a guarantee likely required.

Project Management

Section 1. Fit Cost Data

Value-Added Opportunities:

Design work, carpet tile, ceiling tile, furniture & demountable partitions. Colliers' value proposition is the extension of the global discount to our clients. It's important to provide multiple vendors for each category.

Total Fit-Out Cost

$225/sf-$325/sf

Class A Office

$125/sf-$225/sf

Class B Office

$60/sf-$150/sf

Flex Office / Warehouse

$60/sf-$100/sf

Warehouse

Total Fit-Out Cost Notes:

The fit-out cost refers to the total cost of design, construction, and installation for a space. It includes categories such as materials, labor, furniture, fixtures, equipment, finishes and other related costs. The specific factors influencing the total fit-out cost can vary widely depending on the project scope, location, size of the space, quality of materials, and complexity of design.

Furniture Cost

$35/sf-$80/sf

Class A Office

$25/sf-$70/sf

Class B Office

Furniture Cost Notes:

These costs are not included in the Total Fit-Out costs.

Low Voltage Cabling Cost

$6/sf-$25/sf

Class A Office

$4/sf-$12/sf

Class B Office

Low Voltage Cabling Cost Notes:

These costs are included in the Total Fit-Out costs.

High end figures include for significant Audio-Visual elements within the design. Includes for voice/data/AV cabling, BUT excludes Security.

Floor Covering Cost

$8/sf-$20/sf

Class A Office

$6/sf-$15/sf

Class B Office

Floor Covering Cost Notes:

Includes for floor prepartion/levelling as well as floor covering (carpet, tile, wood, polished concrete, etc)

Partitioning Walls Cost

$45/sf-$80/sf

Class A Office

$25/sf-$40/sf

Class B Office

Partitioning Walls Cost Notes:

Figure is significantly influenced by the number of enclosed rooms, extensive use of glazing and finished ceilings

Other (IT/etc) Cost

Other Cost Notes:

These numbers vary depending on the client requirements and client type.

Construction to Move-in Cycle Time

22wks-40wks

Class A Office

22wks-40wks

Class B Office

Cycle Cost Notes:

Permit approval time is typically 6-8 weeks in Toronto/Greater Toronto Area.

Construciton fitup duration depends on quality and size.

Assume 16 weeks for any space below 10,000 sf and up to 32 weeks for 60,000 sf. Larger than 60,000 sf would be dependant on phasing, floor plate sizes, etc and could be one year or longer.

Section 2. Scope of Work Description

Phase 1: Services Before and During the Transaction

Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Not typically included at all, but available for an additional fee.
Define program of requirements for location, building and interior characteristics
Not typically included at all, but available for an additional fee.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Perform Test-fit
Not typically included at all, but available for an additional fee.
Phase 1 Notes:
This would be included in our fixed fee during initiation/planning phase. Due Diligence report is not typically included and would be an additional fee.

Define workplace strategy for client and program of requirements for location is a specialized service and will be completed only as an additional fee, not embedded in PM fixed-fee.

Phase 2: Service Before and During the Design Process

Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Not typically included at all, but available for an additional fee.
Define interior guidelines for architect based on workplace strategy
Not typically included at all, but available for an additional fee.
Not available / not a service that can be offered.
Control workplace strategy and functionality and during design process
Not typically included at all, but available for an additional fee.
Not available / not a service that can be offered.
Architectural design
Not available / not a service that can be offered.
Colliers Project Leaders Bid Document Review™ (Review bid documents at 100% design complete stage to identify shortcomings in the bid specifications and drawings.
Not typically included at all, but available for an additional fee.
Phase 2 Notes:
Negotiate all client-vendor contractors (IT, AV, security/access control, signage, high-density filing) on behalf of the client and/or work with the client's FM operations team to advise on FM services strategy for property. Confirm with client before contracting for services, level of involvement and number of vendors procured is client dependent and priced accordingly.

Schedule and chair weekly design review meetings/conference calls: Dependent upon size and scale of project.

Other Value-Added services: We would not typically perform floor plan, core and circulation efficiency ratios.

Define interior guidelines and control workplace strategy and functionality: Include in architect or Interior Design scope or Workplace Solutions

Architectural design: Support client in procurement of services.

Colliers Project Leaders Bid Document Review™: Cost separately. Valuable on design-bid-build projects with budget of $10M or greater, or complex construction.

Phase 3: Services Before Construction

Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Phase 3 Notes:
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure the integrity of the process and quality of the workmanship: We typically get involved in putting together the recommendation list for appropriate sub-contractors that complies with the quality of workmanship required for the project.

Develop Project Cost Summary + Invoice Tracker and update weekly: We track commitments, not typically track invoices for the Client unless for additional fees.

Phase 4: Services During Construction

Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Not typically included at all, but available for an additional fee.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Coordinate value/engineering process, if required.
Not typically included at all, but available for an additional fee.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 4 Notes:
Some construction meetings will occur bi-weekly.

Review, and recommend for payment, the contractor’s Applications for Payment: We act as payment certifier for an additional fee.

Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter: Tenant Allowance reconciliation.

Coordinate value/engineering process, if required: We would not complete a VE exercise at this stage. This item should be part of the design phase.

Provide as-built drawings and O&M Manuals to Client FM Operations team: This is delegated to the Contractor as part of their Contract.

Additional Services: Services During Relocation

Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Not typically included at all, but available for an additional fee.
Additional Services Notes:
Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants, If requested by client.

Additional Services: Project Management Services Related to Furniture/Workstation Procurement

Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Not typically included at all, but available for an additional fee.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.
Additional Services Notes:
Scope of services is client dependent.

Operating Environment Rankings reported on a scale of 1 (least favorable) to 10 (most favorable).

Human Capital

7, 3 7/10

Labor Force Growth
Labor force growth rate (past 5 years)

4, 6 4/10

Wage Inflation
Rise in wages (past 5 years, local currency)

3, 7 3/10

Millennials
Proportion of population in the age 20-39 cohort


5, 5 5/10

High School Education Equivalent
Proportion of population attaining this level

5, 5 5/10

University Education Equivalent
Proportion of population attaining this level

5, 5 5/10

Overall Education
Composite average of High School & University


5, 5 5/10

Human Capital Composite

Business Climate

5, 5 5/10

Innovation
Presence of innovative factors in economy

4, 6 4/10

Economic Risk
Resilience of economy to unexpected events

8, 2 8/10

Business Environment
Friendliness of business environment

3, 7 3/10

Corporate Tax Rate
Favorable corporate tax rate


5, 5 5/10

Business Climate Composite

Operating Environment Composite

5, 5 5/10

Combined average score of Human Capital and Business Climate factors

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. This publication is the copyrighted property of Colliers International and/or its licensor(s).

Back to Top