Occupying approximately 11,000 square feet and in immediate need for expansion, the Human Resources Professional Association (HRPA) engaged the services of Savills to develop and implement a comprehensive real estate strategy from concept to move-in. A secondary objective lay in assisting its newly formed sister organization, the Human Resources Research Institute (HRRI).
Savills initiated its FLOW™ process, which included detailed needs analysis, touring the premises of other similar professional organizations and conducting consensus-building sessions with senior stakeholders as well as HRPA’s finance and audit committees to define HRPA’s overall strategic business drivers and corporate vision. Having done due diligence, Savills set out to provide a solution that would satisfy the organization’s requirements regarding finance, size, timing, accessibility and image.
As a next step, Savills completed a detailed search of all buildings located along the TTC Yonge-University subway line. Thirty buildings met minimum criteria. These properties were reviewed with HRPA’s real estate committee, which chose five to tour. Competing proposals were received from three short-listed alternatives, including HRPA’s existing building/landlord.
Savills then commenced strategic negotiations with each of the short-listed proponents. The primary objectives of these negotiations were to: i) minimize real estate costs; ii) allow for immediate expansion; iii) maximize flexibility for future growth; iv) minimize upfront capital required; and v) address HRPA’s remaining lease obligation.
Savills leveraged one of the landlord’s motivations to orchestrate the perfect solution for HRPA, securing a long-term lease at 150 Bloor St. W. In addition to being the lowest cost alternative with an effective lease rate significantly below market, and the ability to accommodate the HRRI operations, the negotiated lease terms provided the following benefits to HRPA:
- 18 months of free rent (2 months beyond expiry of existing lease obligation
- Exclusive use of adjoining patio overlooking Yorkville with no rent obligation
- Installation of podium signage specifically for HRPA
- Significant landlord contribution towards leasehold improvements (over 50%)
- Rights of first refusal and first offer on expansion premises
- Reduced security deposit requirement, 35% of standard requirement
Once all of HRPA’s objectives were successfully achieved, Savills completed a comprehensive presentation of the entire real estate process to HRPA’s board to secure ultimate approval.
The Savills Project Management + Design team handled the entire relocation process, including plan drawings, consultant coordination, tender process management, construction, delivery, furniture installation and relocation management. The move took place over a single weekend.
Thank you for negotiating such a cost effective and creative lease agreement. I appreciated the fact that you were squarely on our side of the negotiation table at all times.William Greenhalgh, Chief Executive Officer, HRPA