The utility industry is volatile and unpredictable, but that could work in your favor, especially when it comes to your real estate options.
Today’s utilities face a range of ongoing challenges, including regulatory complexities/uncertainties, evolving system demand, and aging infrastructure. This has placed a strong emphasis on finding savings to increase the required capital for growth and replacement projects. Effective planning and utilization of your real estate portfolio will be crucial in continuing to meet customer demands in a sustainable, dependable, safe, and affordable manner.
ARTICLE: HOW ONTARIO UTILITIES' RATES ARE IMPACTED BY THEIR REAL ESTATE STRATEGY
The Utility Practice Team at Cresa Toronto assists utilities companies in developing strategic real estate plans that help support the funding, justification, and approval of their real estate assets.
Reach out to your Cresa Advisor today to reassess your real estate footprint.
2024 is shaping up to be a year of implementing strategies for organizational resilience and growth during uncertain times. Fewer companies are functioning on a hybrid model as compared to the immediate aftermath of the pandemic. Many companies have asked employees to come back and are continuing to use their existing space. Throughout the year we are projecting to see an increase in fees related to utilities, wages, insurance and more.
In the dynamic world of commercial real estate, it is crucial for businesses to proactively manage their operational costs. Lease expense reviews are instrumental in this goal. Cresa Toronto's team of experts enable tenants to thoroughly assess their leases and often recoup overlooked funds, mitigating the impact of rising expenses.
SERVICE LINE ONE-PAGER
A Lease Expense Review is an invaluable tool to identify billing errors that often occur in commercial real estate leases.
Download this Lease Expense Review one-pager to explore the value of conducting a Lease Expense Review, and when is a good time to do so.
We partner with tenants exclusively to uncover their portfolio’s hidden costs to optimize value.
While mistakes made by landlords are not intentional, they are inevitable. Working with – and not in opposition to – your landlord, our advisors initiate an inquiry on basic lease compliance and fairness.
As your workspace continues to be underutilized, isn’t it time to get a second opinion on your commercial lease, to ensure every penny is accounted for? Talk to your Cresa Advisor today to review your 2023 estimates.
Your 2023 operating cost estimates have likely increased.
LEASE EXPENSE REVIEW
We know that for most organizations, a hybrid structure is inevitable. But a hybrid model isn’t one size fits all – it’s a spectrum. Understanding where your organization falls on the spectrum is the key is creating a sustainable workplace strategy.
Everything we do is from your perspective – and to your advantage.
UTILITIES
Cresa Toronto’s utility practice team, composed of Robert Antenucci, Dean Newman, Barbara Wright, and John Macintyre, has over 20 years of experience working with utility providers, such as Alectra Utilities, Toronto Hydro, and Hydro Ottawa. We understand the unique requirements of the utility sector and how best to meet your needs.
Besides, with an exclusively occupier-focused business model, we are able to provide you with unbiased, conflict-free real estate advice. We never represent landlords or developers so you can rest assured we’re always acting with your best interests in mind.
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According to most leases, Landlords have the right to make adjustments in their calculation methodology which can increase or decrease operating costs, if they determine it is reasonable to do so. As a Tenant, it is crucial to look at the language in your lease to understand the rights required to challenge the Landlord’s determination of Additional Rent. In many leases, Tenants only have a limited amount of time to ask for support documents/information from the Landlord.
Understanding your rights, based on your specific lease, is important, particularly if you are being charged more than your appropriate share as per your lease. So, reading the fine print and being timely in terms of requesting and reviewing the Landlord’s support materials is more important now than ever.
Lease Expense Review
Additional rents are on the rise - Market Trends for 2023
Lease Expense Review
When is the ideal time to do a lease expense review
Lease Expense Review
Major Captial Expenditures Pass-through
OUR RESPONSES TO
Frequently Asked Questions
What are the most common hesitations clients have about Lease Expense Reviews?
Given the multitude of tasks that clients typically have on their plate these days, they often don't prioritize reviewing their lease expenses, because there's almost an assumption that the landlord has been doing it correctly. However, that's not always the case. As a partner to the occupier, we have developed a detailed process of going through this so that it isn't time burdensome on the tenant themselves.
Utilities
Timing rules the industry. We know which kinds of companies — upstream, midstream and downstream — are likely to need space at which times, and we can help you plan accordingly.
We provide customized attention to ensure that your best interests are at the forefront of everything we do.
The post-pandemic era has necessitated the development of new workplace arrangements while maintaining a strong workplace culture. Cresa understands the various dynamics in place within utilities and has supported culture development by engaging leadership and staff throughout major real estate projects such as new facilities, relocations, and major renovations. Cresa continues to utilize this knowledge to assist utilities in planning new workplace strategies that will accommodate the new work environment.
Cresa has conducted several utility real estate portfolio reviews that encompass administrative and operational facilities as well as infrastructure properties. This has allowed utilities to gain a better understanding of their real estate utilization and repurpose or dispose of surplus assets. Repurposing supports system capacity and sustainability-related projects while proceeds from dispositions can be re-invested into capital programs.
Our Experts
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