Toronto, ON

Space Measurement Standard

BOMA 96

Space Unit of Measure

Square Feet

Financial Data Below Reported In

CAD

*
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 15-20% 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-$40/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

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

0mo.-6mo.

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.

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

$12/sf-$30/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 Timeline: 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:

Case by case basis

Statutory Subletting/Assignment

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

Statutory Subletting/Assignment Notes:

Case by case basis

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

Typical cost to terminate early: Typically equal number of anticipated months to release, unamortized TI's and commissions

Obligations Upon Lease Expiration

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

Tenant Obligation Notes:

Minimum, First + Last months rent, net/TMI + 13% HST. Security on case by case basis.

Workplace

Regional Office Space

190sf-240sf

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

Regional HQ Office Space

140sf-190sf

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

Desk Sharing

Desk-sharing is a common practice in the market.

Desk Sharing Average

5-15

Average headcount per workstation.

Urbanization of the workforce is: Equal to several other considerations driving location decisions

Companies are increasingly considering downtown locations to assist with attraction and retention of employees.

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

$2/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

In addition to the fit-out contribution, the Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

1mo.-3mo.

Typical number of rent-free months.

Lease Provisions

Lease Term

3yrs.-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

$2.75/sf-$3.75/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 Timeline: 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:

Case by case basis

Statutory Subletting/Assignment

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

Statutory Subletting/Assignment Notes:

Case by case basis

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

Typical cost to terminate early: Typically equal number of anticipated months to release, unamortized TI's and commissions

Obligations Upon Lease Expiration

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

Tenant Obligation Notes:

Minimum, First + Last months rent, net/TMI + 13% HST. Security on case by case basis.

Section 1. Fit Cost Data

Total Fit-Out Cost

$40/sf-$80/sf

Class A Office

$25/sf-$60/sf

Class B Office

$20/sf-$45/sf

Flex Office / Warehouse

$20/sf-$35/sf

Warehouse

Total Fit-Out Cost Notes:

This information is highly variable depending on size, complexity and location of any given project.

Furniture Cost

$20/sf-$50/sf

Class A Office

$20/sf-$40/sf

Class B Office

$10/sf-$20/sf

Flex Office / Warehouse

$10/sf-$20/sf

Warehouse

Furniture Cost Notes:

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

Low Voltage Cabling Cost

$4/sf-$10/sf

Class A Office

$3/sf-$8/sf

Class B Office

$3/sf-$8/sf

Flex Office / Warehouse

$3/sf-$8/sf

Warehouse

Low Voltage Cabling Cost Notes:

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

Other (IT/etc) Cost

$5/sf-$10/sf

Class A Office

$3/sf-$6/sf

Class B Office

$1/sf-$2/sf

Flex Office / Warehouse

$1/sf-$2/sf

Warehouse

Other Cost Notes:

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

Construction to Move-in Cycle Time

16wks-24wks

Class A Office

16wks-24wks

Class B Office

14wks-20wks

Flex Office / Warehouse

12wks-18wks

Flex Office / Warehouse

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.
Not typically included at all, but available for an additional fee.
Advise Colliers broker and client on project issues and their resolution as they occur.
Not typically included at all, but available for an additional fee.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Not typically included at all, but available for an additional fee.
Develop high-level project estimate and timeline based on test fit and Client standards
Not typically included at all, but available for an additional fee.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Not typically included at all, but available for an additional fee.
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
Not typically included at all, but available for an additional fee.
Phase 1 Notes:
We would do this work under pre-leasing services at an agreed to 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.
Not typically included at all, but available for an additional fee.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Not typically included at all, but available for an additional fee.
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.
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.
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.
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 available / not a service that can be offered.
Control workplace strategy and functionality and during design process
Not available / not a service that can be offered.
Architectural design
Not available / not a service that can be offered.
Phase 2 Notes:
Develop the RFP for selection of a space planner/architect and any other consultants identified and required: If this is a turnkey lease deal, then landlord would perform the procurement under their design build scope.

Facilitate, participate and provide recommendations on the space planner/architect interview process: If this is a turnkey lease deal, then landlord would perform the procurement under their design build scope.

Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of Client and/or Work with the Client FM Operations team to advise on FM services strategy for property: Confirm with client before contracting for services - level of involvement and # 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 of ID scope.

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.
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.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" 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.
Not typically included at all, but available for an additional fee.
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.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" 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.
Phase 3 Notes:
Review all proposed subcontractors and monitor the General Contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship: This work is typically included under the prime design consultants contract.

Negotiate, on client's behalf, the General Contractor agreement for Client approval: On a DB, this would be addressed during the procurement of the Design Builder.

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.
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:
Provide as-built drawings and O&M Manuals to Client FM Operations team: This may be delegated to GC through 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.
Additional Services Notes:
Scope of services is client dependent.

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

3, 7 3/10

Incentives
Value potential, diversity/number of programs

6, 4 6/10

Job Saturation
Competition for workers

5, 5 5/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

8, 2 8/10

HS Ed Eq
Proportion of population attaining this level

5, 5 5/10

University Ed
Proportion of population attaining this level

7, 3 7/10

Overall
Composite average of HS Ed Eq & University

Composite

5, 5 5/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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