2010 Program
7:15 AM
REGISTRATION & CONTINENTAL BREAKFAST
8:00 AM
OPENING REMARKS: PROGRAM OVERVIEW
Introduction of the Conference Chairman:
TBA
Conference Chairman:
Dwight Jack, Vice President, Office Leasing, Brookfield Properties Corporation
8:05 AM
CHANGE: AN OVERVIEW ON KEY TRENDS AND TRANSACTIONS IN OFFICE, RETAIL AND INDUSTRIAL REAL ESTATE
This overview will discuss the office, retail and industrial leasing activity in the changing Calgary market. What are the major trends? Panelists will discuss deal flow, velocity and pace in today’s market, anticipated space availability and anticipated absorption rates over the next 12–18 months. What are the profiles of the tenants that are looking for space? What are the resulting implications for leasing activity in 2011 and beyond? How much of an emphasis is there now on greener and more environmentally enhanced buildings?
Moderator:
Dwight Jack, Vice President, Office Leasing, Brookfield Properties Corporation
Panel:
Bruce Bynoe, Principal, Associate, Avison Young Real Estate Alberta Inc.
Greg Kwong, Managing Director, CB Richard Ellis Alberta Ltd.
Robert MacDougall, Senior Managing Director, Cushman & Wakefield Ltd.
9:05 AM
MORNING REFRESHMENTS
9:30 AM
CONCURRENT SESSIONS (Select A1, A2 or A3)
Session A1:
WHERE ARE THE DOWNTOWN AND SUBURBAN OFFICE MARKETS HEADING IN THE NEXT TWELVE MONTHS?
There appears to be varying commentary on how much space is available today and how much will become available over the next 12–18 months. How much unoccupied space is there currently on the market? How is the sublease space affecting owners? What is happening to net rents in light of the higher vacancy rates? What are projected long term rent trends? What will likely happen in 2011? How successful have landlords been as well as brokers on their behalf in rebranding or repositioning B and C class older office buildings vs. A space? How do landlords address the challenge of dealing with a tenant who is only in the market once every five or ten years? To what extent are any tenants pushing the demand for greener building environments? Is LEED certification a factor?
Moderator:
Peter Mayerchak, Vice President/Partner, CMN Calgary Inc.
Panel:
Geoff Christie, Director of Leasing, Western Region, CREIT Management L.P.
Sean McCullough, Vice President, Leasing, Strategic Group
Sandy McNair, President, Altus Insite
Ryan Remington, Sales and Leasing Manager, Remington Development Corporation
Session A2:
MASTERING LEASE NEGOTIATION IN TODAY’S CHANGING MARKET: HOW TO DEVELOP SOLUTIONS, RESOLVE KEY ISSUES AND CLOSE THE DEAL
New issues and sticking points are arising in today’s recessionary market. Is Calgary typical or an anomaly in that regard? What are tenants looking for that they’ve not looked for before – and are they achieving them in this market? While landlords still seek to maximize rents and occupancy – must one be traded off against the other in this market? Is the market segmented – different dynamics playing out for large tenants vs. small ones, AA vs. A class, vs. B, new buildings against inventory? What are the factors – and are landlords behaving differently in this market? Our panel will offer robust discussion on these topics and involve audience participation.
Moderator:
Mark Kolke, President, MaxComm Realty Advisors
Panel:
Damien Mills, Principal, CresaPartners
Peter Stack, Director of Office Leasing, Cadillac Fairview Corporation
Alex Wong, Vice President, Avison Young (Canada) Inc.
Session A3:
UNDERSTANDING LANDLORD’S AND TENANT’S RIGHTS IN TODAY’S MARKET. IS CALGARY ANY DIFFERENT THAN OTHER CANADIAN CITIES?
This panel will discuss the latest practices in (and offer an explanation of key differences in) rights of expansion, rights of contraction, early termination, rights of first refusal, rights of first offer and other real estate leasing tools in today’s market conditions. What are tenants asking for now and why? How are landlords responding to special rights involving downsizing of premises? Learn how these points should be addressed from the perspective of a landlord, a tenant, and a litigator resulting in a more ideal lease. What are some sources of common conflict between a landlord and a tenant over special rights and how can they be avoided through the drafting process? What are the issues to concern yourself with when you are drafting them? Both landlords and tenants are trying to build flexibility, and control, into their leasing arrangements. How can competing interests co-exist?
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?
Moderator:
Kevin Keyes, Partner, McCarthy Tétrault
Panel:
Rick Artus, Director, Office Leasing, Oxford Properties Group
Doug Johannson, Vice President, Avison Young (Canada) Inc.
Chris Saunders, Managing Partner, Inducor Real Estate Solutions
10:45 AM
CONCURRENT SESSIONS (Select B1, B2 or B3)
Session B1:
INDUSTRIAL REAL ESTATE LEASING TRENDS: IT’S ALL ABOUT THE RATE!
An examination the most common trends in leasing industrial property in the Calgary market. What are your biggest challenges with tenants today in the current economic conditions? To what extent has industrial space and demand been affected by the current prevailing economic turbulence? 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? To what extent have the costs of construction and the price of industrial land affected build-to-suit activity? What impact have these trends had on lease rates? Have industrial leases changed to any major extent over the past few years? When will the next Industrial space be built in Calgary?
Moderator:
Marshall Toner, Senior Vice President Industrial Sales and Leasing, CB Richard Ellis Ltd.
Panel:
Cindy Dubray, Leasing Manager, Morguard Investments Ltd.
Ryan Panet, Director, Leasing AB, Tonko Realty Advisors Ltd.
Irene Au, Director of Leasing, Western Canada, Dundee Realty Management Corp.
Session B2:
STRATEGIES FOR BANKRUPTCY, INSOLVENCY AND MANAGING TENANTS IN A DISTRESSED MARKET
The discussion will open by exploring ways to manage potential tenant bankruptcy and insolvency in the lease, dealing with a receiver, and the latest case law in Alberta on these points. What are the latest issues in tenant default remedies? Are moveable hypothecs worth the hassle? Does the Landlord have the right to cancel the lease? Does the Tenant? Does the Trustee? What happens to the letters of credit, deposits and guarantees when the tenant goes bankrupt or seeks the protection of insolvency laws? What options could landlords use to manage defaulting or downsizing tenants? How can lease provisions manage sublease activity without unduly penalizing the tenant? When can the landlord’s consent be reasonably withheld?
Moderator:
Thomas Cumming, Partner, Gowlings
Panel:
Sean Collins, Partner, Bankruptcy & Restructuring, Corporate Commercial Litigation, McCarthy Tétrault LLP
Deryck Helkaa, Senior Vice President, Transaction Advisory Services, Ernst & Young Inc.
Session B3:
GREEN — AND THEN SOME!
This session will explore some of the latest trends on how space planners, interior designers, architects and manufacturers are able to extract maximum value from today’s workplace. The new LEED Gold buildings are open for business and companies are moving into state-of-the-art premises. How do these new buildings provide a better workplace advantage and how have their space designs changed as a result? What are the implications of these approaches ultimately on the space requirements of organizations? How are they affecting tenant construction requirements? What are other issues and priorities for corporations as they strive for work environments that offer higher productivity? Corporate tenants are still very strongly focused on green workspace and buildings, but in most cases want to know what can be done without impacting their rent levels.
Moderator:
Loy Sullivan, Director, Office Leasing, 20 Vic Management Inc.
Panel:
Don Fairgrieve-Park, Senior Vice President, Operations, Bentall LP
Matt Grace, Division Head, Western Canada, Enermodal Engineering Ltd.
Sharon Martens, Principal, Martens Group
12:00 PM
INFORMAL LUNCHEON
1:30 PM
CONCURRENT SESSIONS (Select C1, C2 or C3)
Session C1:
THE CHALLENGES IN TODAY’S RETAIL LEASING MARKET
The panel will examine the implications of some of the latest trends in retail real estate on leases and the relationships between landlords and the tenants. At the same time, the discussion will take place within the context of the current economic conditions. What impact is the economy having on retailers and retail leasing in particular? What issues are arising or increasing? Do you expect many retailers to fail in 2011? What impact is consolidation in both the landlord as well as the tenant sector having on retail leasing? Why are there so many issues pertaining to exclusive use clauses? Are they poorly drafted or is it a function of market trends as retailers change their product offerings and reposition themselves? What impact do clauses in the master lease have re: subleasing? What are the rights of the head tenant vs. the subtenants? What impact are US retailers having on the Calgary landscape?
Moderator:
Chris Thompson, Vice President, CB Richard Ellis Ltd.
Panel:
Bernie Bayer, President, Taurus Property Group
Richard Glubish, Director of Retail Leasing, Hopewell Development Corporation
Darryl Schmidt, VP, National Leasing, Western Portfolio, The Cadillac Fairview Corporation Limited
Murray Tait, Executive Vice President, T & T Properties
Session C2:
OPERATING COSTS: AN INCREASINGLY THORNY ISSUE FOR TENANTS AND LANDLORDS
Operating costs are one of the most negotiated issues in lease negotiations, and sometimes they are the most misunderstood. Discussion will cover current practices among owners with respect to new cost areas, and other typical items that tenants are concerned about in reviewing additional rent charges. What constitutes operating costs and what does not? Do tenants understand them? What happens with the operating costs when an existing building requires retrofitting? How transparent are landlords? How transparent do they need to be? Is there an appropriate admin fee that landlords can charge? Finally, if a tenant asks for full audit rights can they exercise such a right?
Moderator:
Rob Blackwell, Director of Leasing, Aspen Property Management Ltd.
Panel:
Patricia Buskas, Vice President & Regional General Manager, Brookfield Properties Corporation
Phil Markovich, Principal, BFR Consulting Ltd.
Larry Kwinter, Partner, Borden Ladner Gervais LLP
Session C3:
TENANT TRANSFERS: NAVIGATING THE WORLD OF SUBLEASING, ASSIGNMENT AND LEASE TAKEOVERS
Subleasing is increasing significantly and it is important for both tenants and landlords to understand the key issues and differences associated with these types of tenancies. What is a sublease? What are the major differences between a head lease vs. a sublease, e.g. in assignment; tenants’ rights? As a tenant, how do you work with landlords in order to get consent? How are lease takeovers being structured? What is the tenant’s perspective on subleases? The landlord’s perspective? What is the difference between lease and sublease enforcement? How do you actually terminate the lease? How can lease provisions manage sublease activity without unduly penalizing the tenant? When can the landlord’s consent be reasonably withheld? Does the landlord need a third party agreement?
Speakers:
D. Cameron Black, Vice President, Legal, Brookfield Properties Corporation
Gregory A. Liakopoulos, Partner, Real Property and Planning, McCarthy Tetrault LLP
Mark St. Pierre, Director, Canadian Commercial Council of Realtors, Avison Young (Canada) Inc.
2:40 PM
CLOSING SESSION — LEASING REAL ESTATE IN CALGARY TODAY: A LANDLORD’S PERSPECTIVE
As vacancy rates in office, industrial and retail markets increase, what leasing strategies and hurdle rates are landlords considering in these market conditions? How are they marketing their vacant and soon-to-be vacant space? Are landlords keen to “extend and blend” and to renew tenant leases for as long as possible while tenants are seeking much shorter terms? What impact does this strategy have on net asset value? How do you get a deal done in this market? Do short term leases save money or do they not? Are there any particular creative ways to complete a successful transaction? 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? What are the practices and expectations of U.S. organizations in doing deals for their Canadian operations? When the differences are very significant between their approach and Canadian practices, how do you resolve these issues?
Moderator:
Dwight Jack, Vice President, Office Leasing, Brookfield Properties Corporation
Panel:
Randy Cameron, Senior Vice President, Western Canada, Dundee REIT
Greg Guatto, President & COO, Aspen Properties Ltd.
John Marotta, Senior Vice President, Western Region, Bentall LP
Blair Sinclair, Senior VP, Leasing & Development, Tonko Realty Advisors Ltd.