2006 Program

7:15 AM 

8:00 AM 
OPENING PRESENTATION: Leasing Market Overview for Calgary and Edmonton: Key Trends and Transactions in Office, Retail and Industrial Real Estate

Overview presentations on office, retail and industrial leasing activity in the Calgary and Edmonton markets for the first three quarters of 2006. What the major trends? What were some of the most significant transactions? How much new space is anticipated for 2007? What are the anticipated absorption rates? What are the profiles of the tenants that are looking for space? What are the resulting implications for leasing activity in 2007 and beyond?

Greg Kwong
, Managing Director, CB Richard Ellis Alberta Ltd.

Angus Fraser 
– Vice President, CB Richard Ellis Alberta Ltd. 
Chris Thompson – Vice President, CB Richard Ellis Alberta Ltd. 
Marshall Toner – Vice President, CB Richard Ellis Alberta Ltd. 
Dave Young – Managing Director Edmonton, CB Richard Ellis Alberta Ltd.

9:00 AM

9:30 AM
Session A1:
Understanding Landlord’s and Tenant’s Rights and Remedies: Under What Circumstances Can an Owner Terminate Your Lease? How Are Current Market Conditions Affecting Landlord/Tenant Dynamics?

This panel will discuss and explain the latest practices and differences in rights of expansion, rights of contraction, early termination, rights of first refusal, rights of first offer and other real estate leasing tools. What are tenants asking for and why?

Both landlords and tenants are trying to build flexibility, and control, into their leasing arrangements. This session will examine the issue of early termination rights, rights of first offer, rights of first refusal, restrictive covenants and other customizations required by tenants and landlords. How can competing interests co-exist?

How are Landlords accommodating the demand for tenant flexibility opposite the need to have future leasing flexibility?

How do lenders and prospective new tenants react to tainted space? What management tools are available to help Landlords to keep track, and how effective are they? When should these tools be used, and when refused? What’s new and dangerous? What dangers have gone away?

Samuel Durante
, Partner, Macleod Dixon LLP 
Greg Liakopoulos, Oxford Properties Group

Session A2:
Industrial Real Estate Leasing Trends in Calgary and Edmonton

An examination the most common trends in leasing industrial property in Calgary and Edmonton. What are the major differences in leasing space for warehousing and logistics vs. for manufacturing and other processing purposes? Have the standards for industrial leases of environmental compliance increased along with the need for exit reports? Is the demand for sale leasebacks growing or is it a rather limited trend? To what extent have the increasing costs of construction and the rising price of industrial land affected build-to-suit activity in Calgary and Edmonton? What impact have these trends had on lease rates?

Cindy Dubray
, Leasing Manager, Morguard Investments Ltd.

Jeff Buziak
, Vice President, Avison Young Commercial
Murray DeGirolamo, Vice President Industrial, Western Canada, Hopewell Development Corporation 
Kelly Risdon, Leasing Manager, Dundee Realty Management Corporation

Session A3:
Net Rent, Lease Audits, CAM and Operating Cost Charge-Backs: Five Issues on the Edge

This session will examine the often-thorny issue of operating cost charge backs in a net lease and where the difficulties lie with this practice.

Charge-backs are one of the most negotiated issues in lease negotiations, and the most audited item in a tenant audit. Discussion will cover current practice among owners with respect to new cost areas, and other typical items that tenants are concerned about in reviewing additional rent charges. Does the concept of fixing common area maintenance (CAM) costs make sense? What costs are relatively controllable, e.g. can be fixed? Is there a challenge in allocating costs in a mixed-use building? What is the language of a good and a bad audit clause, including how to settle audits, the timing and the process?

How frequently are landlords of office and retail space being audited by their tenants? What are their experiences and policies with respect to lease audits? Some landlords will not agree to allow a third party who is paid on a contingency basis to do the audit rather than consultants who are paid on an hourly rate basis. What are the issues with these approaches?

Mark Kolke
, President, MaxComm Realty Advisors Inc.

Alan Rivait
, Director of Leasing, Western Region, Ivanhoe Cambridge
Murray Tait, Vice President & Corporate Counsel, T & T Properties 
Deborah Watkins, Partner, Daoust Vukovich LLP

10:50 AM
Session B1:
Major Office Leasing Market Trends and Issues in Calgary and Edmonton

The session will open with a very brief overview of the comparative office leasing trends in the downtown cores, suburbs and other sub-markets in Calgary and Edmonton. How much unoccupied space is there currently on the market? What is happening to net rents? What are projected long term rent trends? What will likely happen in 2007? How are landlords dealing with the pricing structure for non-energy related companies, e.g. financial services, technology? 
To what extent are tenants pushing the demand for greener building environments? Are there really higher costs and, if so, can they be justified? Can the quality of facilities contribute to retaining and recruiting key employees? Do greener buildings enhance occupant productivity and lower operating costs? What implications do green buildings have on leases? How can tenants find cost certainty and flexibility under the current very tight market conditions?

Sandy McNair
, President, Altus InSite

Chris Howard
, General Manager, Calgary West Business Unit, Aspen Properties Ltd. 
Blair Sinclair, Senior Vice President, Tonko Realty Advisors Ltd. 
Shaun Wuschke, Vice President Leasing, Bentall Real Estate Services

Session B2:
Mould and Other Environmental and Risk Management Issues in Leasing

How are owners and tenants addressing toxic mould, asbestos abatement, potential pandemics and other environmental and health risk issues in their leases. What are the significant environmental regulations and liabilities that building owners must be aware of? How are leases dealing with toxic mould related issues inside the building envelope? What kind of environmental insurance and strategies are owners and tenants using in this regard? How should insurance clauses be drafted to cover off these risks? Some discussion will also focus on the challenges of dealing with the environmental aspects in the case of industrial, retail or office developments on brownfield sites. What are the insurance challenges for these types of properties?

George Boire
, Senior Vice President of Environmental Solutions, Marsh Canada
John Singleton
, QC, Partner, Singleton Urquart
Elia Sterling
, President, Theodor Sterling Associates

Session B3:
Leasing Practices and Administration in a Hot Market: Does Haste Make Waste?

What is happening to leasing practices and administration in a tight rental market? Are landlords and tenants prepared to forego certain steps and procedures in their need to secure space and to do so as quickly as possible? Are tenant lease negotiations still starting with a non-binding letter of intent or are they moving to a formal Offer to Lease? Or are landlords and tenants proceeding directly to a lease? What the pros and cons of each approach? How are owners and tenants managing leasehold improvements in the tight market given the unpredictability of construction costs? Dates are taking on an exceptional importance in this rising market since time is of the essence more than ever before.

Brad Krizan
, Director of Leasing, OPUS Building Canada Inc. 
Don Goyan, Manager Retail Leasing, Hopewell Development Corporation 
Karen Louise Price, Manager, Legal Services, Oxford Properties Group 
Stephen Raby, Partner, Macleod Dixon LLP

12:15 PM

1:20 PM
Session C1:
Mastering Lease Negotiation in a Landlord’s Market: The Top Ten Issues

This session will examine some key negotiating strategies and techniques that tenants and brokers should consider using in a landlord driven environment. How are owners behaving as buildings approach full occupancy? How do they deal with conflicts? Are early tenant renewals available? How do landlords perceive themselves? How do tenants perceive themselves? What value could lawyers and brokers bring to the landlord, to the tenant and to the overall process in a tight market? What are the typical discussion points that should be easily resolvable in lease negotiation and what are the arguments used to reach the middle ground? How long should it take to finalize a deal? How will a landlord deal with a bully tenant who just can’t be satisfied? How should a tenant deal with a bully landlord that won’t compromise?

Cameron Black
, Vice President, Legal, Brookfield Properties 
Andrew MacLachlan, Vice President, J.J. Barnicke Calgary Inc. 
Beth Vogel, Attorney, Burnet Duckworth Palmer

Session C2:
New Developments and Challenges in Retail Leasing

This session will focus on some of the major trends and issues in retail real estate leasing from both the landlords’ and the tenants’ perspectives. What impact is consolidation in both the landlord as well as the tenant sector having on retail leasing? Given the blurring of retail lines between food and drugs, how are some landlords responding to this trend, e.g. elimination of exclusive use clauses and non-competes or restrictive covenants? In retail real estate, what are some of the ways in which landlords are adding value in the leasing process? What impact might the trend towards lifestyle centres vs. power centres have on future trends in retail leasing? Are lease audits on the rise? Does realtime tenant access to tenant operating cost data avoid lease audits? Who is doing this now? Will the emergence of gross leases reduce the need for lease audits?

Angela Wilhelm
, Leasing Manager, Deerfoot Meadows 
Scott Stoddart, Senior Retail Agent, Cushman & Wakefield Lepage Inc. 
Richard Dawson, Q.C., Partner, Blake, Cassels & Graydon

Session C3:
Assessing and Managing the Financial Covenant of the Tenant; Current Problems and Trends in Bankruptcy and Insolvency

This session will explore methods of not only assessing initial tenant covenant quality but also how to monitor that covenant quality over the life of the lease. A covenant could be depleted without the landlord knowing it over the term of a lease through reduced profitability, lawsuits, rising interest rates or many other factors. What creative methods can be used to provide financial security to the landlord in the face of an eroding tenant covenant?

What back up measures can and should be used to improve covenant quality, such as the use of guarantors, indemnifiers and financial security? Which methods work the best and what are the pitfalls of each? This panel will also explore current problems in dealing with a bankrupt tenant, and ways in which leases may be able to be structured to minimize these problems from a landlord’s perspective.

Terry Adams
, Manager, Lease Administration, Bentall Real Estate Services
Doug Nishimura, Lawyer, Burnett, Duckworth & Palmer

2:45 PM

Today’s office, retail and industrial real estate market is comprised of a diverse group of building owners and landlords – from REITs to pension fund and their advisors, from passive equity investors to privately owned companies, from corporations to private individuals and their families. As a result, the range of asset management and leasing policies, styles, practices, and processes can be quite considerable.

This roundtable discussion among senior executives will examine how leasing strategies, policies and approvals can be influenced and differ among various types of owners and asset management decision-making models. The following are some of the questions that they will address:

  • How do you ensure that your investment, asset management and leasing teams are all on the same page?
  • To what extent would you say that product differentiation and branding is a critical part of your corporate priorities and marketing strategies? Do you believe that any of this matters to your tenants?
  • What have you found to be the most effective ways to market your properties and space?
  • What role and value do brokers, lawyers and intermediaries provide in your marketing and leasing strategies? How can they be more involved in the renewal process? Do you see their roles changing going forward?
  • How would you describe deal flow, velocity, and pace in today’s market?
  • As a leasing executive, how do you manage an asset manager? As an asset manager, how do you manage the owner?
  • Are tenants more or less sophisticated today?
  • Everyone talks about tenant retention but how strongly do you really practice it? What are your most significant strategies as part of these programs?

Christopher Ridabock
, President, J.J. Barnicke Calgary Inc.

Randy Cameron
, Senior Vice President, Western Canada, Dundee REIT
Kevin Pshebniski, President, Hopewell Development Corporation
David Wyatt, National Vice President, Retail Leasing, Redcliff Realty Management Inc.

4:00 PM