Cresa outperforms its competitors in 2018 by maximizing value for Industrial occupiers
Achieving results for Occupiers in a low vacancy market
As industrial occupiers, the state of the market is in the Landlord’s favor. The Greater Toronto Area (GTA) currently sits at a sub one percent vacancy rate for industrial properties, which is one of the lowest vacancy rates in North America. With these market conditions, Occupiers turn to its real estate advisors to create a strategy that will create tangible value. However, not all advisors are equal.
In order to substantiate Cresa’s ability to outperform its competitors, Cresa completed an analysis of all its industrial deals in 2018 and compared them to the market rates that were completed by its competitors on behalf of Occupiers. Specifically, we compared lease rates for the GTA vs. the competitors in the market, as provided by CoStar, which is the largest publicly traded data and statistics provider for the Commercial Real Estate industry. The result was astounding.
On average, the lease rates that Cresa negotiated for its industrial clients were 14.4 percent lower than its competitors. To put that into a financial perspective, that is a savings of $0.93 per square foot for industrial occupiers in the GTA.
How was Cresa able to deliver better value for its clients?
We are an occupier exclusive commercial real estate firm. Our only fiduciary duty is to Occupiers– not the landlord or the developer community, which is the role of many traditional dual listing brokerages. This means we don’t have a conflict of interest in representing and negotiating on behalf of Occupiers. Contrary to our platform, traditional dual-listing brokerages represent both the tenant and the landlord and its objectives are rooted in obtaining future listings from the landlord and developer community, and not
maintaining its focus on the Occupier’s objectives and bottom line.
At Cresa, our tactics are laser focused in negotiations with landlords, leading to stronger results. Our platform is better suited to get Occupiers substantiated results, and our track record speaks for itself. With real estate being one of the top cost items of an organization, isn’t it time you got a second opinion on your commercial real estate strategy and needs?