- Westex International
- 102,000 sq. ft.
- Transaction Management
- Sean Hoehn
client objectives and resultsSee more success stories
Client ObjectivesWestex International’s lease was set to expire, after being located in their space for approximately 10 years. Through preliminary discussions, the most preferred real estate option was to purchase an industrial building. Being a growing, customer centric business, it was important to find a space that accounted for future growth, and was in a location that was easily accessible with nearby amenities, and close enough to their original location to retain its current workforce. Westex decided to seek the advice of Cresa Toronto to leverage the market place and find the most cost-effective option.
Cresa Toronto began by searching for property sales while simultaneously researching on and off market leasing opportunities. The market conditions in 2017 for purchasing Industrial properties were at an all-time high. This was being fueled by low supply and high demand, with REITs and Pension Funds competing for scarce properties, thereby driving up prices.
The almost year-long exhaustive search yielded a leasing opportunity in an industrial building with Westex’s current Landlord in the Heartland node of Mississauga, that already had a high percentage of existing office space, thereby alleviating the build-out costs. The negotiated lease structure enabled Westex to take a phased rent approach, allowing them to favourably grow into their space over the term of their lease. With current market conditions, Cresa Toronto advised Westex to lease a 102,000 SF space, enabling capital to go back into the business as opposed to overpaying for a building in an over-inflated market with limited supply and availability.