2013 Program

Title

Media

Gold

Thursday, May 23, 2013


7:15 AM
REGISTRATION & CONTINENTAL BREAKFAST

8:00 AM
HOW ARE THE MONTREAL OFFICE, RETAIL AND INDUSTRIAL LEASING MARKETS PERFORMING? HOW MUCH ACTIVITY AND DEAL FLOW CAN WE ANTICIPATE?

How much transaction activity has there been in the Montreal office, retail and industrial leasing market over the past twelve months? How would you describe deal flow and velocity in today’s market? What are the current occupancy rates, rental rates etc and where are they heading? What are the anticipated absorption rates for 2013? What are the profiles of the tenants that are looking for space? How much of an emphasis is there on greener and more environmentally enhanced buildings in these market conditions? What is the outlook for the performance of the leasing markets Montreal in 2013 and beyond?

Moderator:
Andrew Cross, Publisher, Espace Montréal

Retail Market:
Marcel Blouin, President, Marcel Blouin Real Estate Inc.

Industrial Market:
Ryan Cymet, Vice President, Industrial, Jones Lang LaSalle Real Estate Services

Office Market:
Laurent Benarrous, Managing Director & Principal, Avison Young Quebec


9:10 AM
MORNING REFRESHMENTS

9:40 AM
CONCURRENT SESSIONS (Select A1, A2 or A3)
SESSION A1:
THE CHANGING LANDSCAPE OF THE RETAIL MARKET AND THE IMPLICATIONS FOR CURRENT TENANTS AND OLDER FORMATS

The retail market in Quebec is poised to experience some dramatic change. One of the most significant is the range of U.S. and European retailers who have entered Canada and the potential implications of these new entrants on landlords, developers, existing retail tenants, and consumers. What will be the most significant changes as a result of this influx on new retail developments, tenant profiles, and leasing activities? What does the future hold for the renewal of older retail? How much change are we likely to see in formats and size, e.g. bigger is not always better. What impact is inner city condominium development having on urban retail formats to serve that new market segment? How different are ethnic retail centres with respect to tenant profiles and the demographic of these consumers? Who are now the real anchors in today’s retail centres? What impact will online shopping have on retail space?

Moderator:
Jean-François Grenier, Senior Director, Altus Group

Panel:
Guy Charron, Executive Vice President, Operations – Retail Sector, Cominar REIT 
Norma Howieson, Assistant Vice President, Leasing, Westcliff Management Ltd.
Manon Parisien, Director, Real Estate Services, Oberfeld Snowcap
Nicolas Rioux, Director, Legal Affairs, Eastern Region, Ivanhoe Cambridge


SESSION A2:
ASSIGNMENT, SUBLETTING, CHANGE OF CONTROL AND LEASE TAKEOVER: CURRENT TRENDS

Subleasing, change of control and lease takeovers are prevalent commodities in the office, industrial and retail markets. It is important for both tenants and landlords to understand the key issues and differences associated with these situations. 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? Under what conditions should transfers be allowed? What control provisions in leases have implications on these actions? What is the tenant’s perspective on subleases? What is 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? What should you do if the prospective subtenant wants to extend the term as a condition of leasing the space?

Moderator:
Céline Tessier, Partner, McMillan LLP

Panel:
Richard Burgos, Partner, Lavery, de Billy LLP
Jo-Anne Durand, Partner, Riel & Associates
Erik Tremblay, Executive Vice President, Groupe immobilier de Montréal inc.


SESSION A3:
DEAL-MAKING IN TODAY’S MARKET: ASSESSING, NEGOTIATING AND FINALIZING OFFERS TO LEASE

Given the anemic economic outlook for North America, there is some concern that vacancy rates in office, industrial and retail properties could be on the rise. How are landlords planning their leasing campaigns and setting hurdle rates in these market conditions? How are threshold deal terms being set? Are NERs the best pricing metric for a landlord to use? Are there any alternative strategies that would be as or more effective? How do Canadian leasing strategies being used by tenants and landlords compare with U.S. strategies? Are the latter practices creeping into the Canadian market? 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? How do you get a deal done in this market? Are there creative ways to complete a successful transaction?

Moderator:
Nathalie Bédard, Partner, Donati Maisonneuve LLP

Panel:
Christian Charbonneau, Senior Vice President, CBRE Limited 
Robert Cressaty, Vice President, Corporate Real Estate Services, Landmark Properties Inc.
Julie Lanteigne, Lawyer, De Grandpré Chait LLP
Richard Poirier, Senior Vice President, Leasing, Magil Laurentian Realty Corporation


10:45 AM
CONCURRENT SESSIONS (Select B1, B2 or B3)
SESSION B1:
NEW DEVELOPMENTS AND THE RESURGENCE OF THE DOWNTOWN OFFICE MARKET: WHERE IS IT HEADING?

How has the office market performed in downtown Montreal vs. the outlying areas? How much unoccupied space is there currently on the market? What impact will the new developments have on the market? Where are net effective rates heading at this time? What are projected long term rent trends? What is the profile of tenants who are attracted to the downtown core and the new space? What will likely happen in the remainder of 2013? 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 tenants increasingly pushing the demand for greener building environments? For what tenants is LEED certification a significant factor? What are the views of landlords in Montreal about greening their existing assets?

Moderator: 
Marie-France Benoit, Director, Business Development, Altus InSite
(email marie-france.benoit@groupealtus.com for the presentation)

Panel:
Andrew Bissett, National Director and Executive Vice President, Montreal Tenant Advantage Team, 
Jones Lang LaSalle Real Estate Services
Brian Salpeter, Partner, Davies Ward Phillips & Vineberg LLP
Sam Tsoumas, Director, Leasing, Broccolini Construction
Colin Worrell, Director, Leasing – Eastern Canada, Allied Properties REIT


SESSION B2:
LANDLORD & TENANT RIGHTS AND REMEDIES: FIVE COMMON DEFAULT SCENARIOS AND OTHER ISSUES THAT YOU NEED TO BE AWARE OF IN TODAY’S MARKET

Rights and remedies are an established common element of commercial real estate leases. They are at times contentious issues for landlords as well as to tenants. This panel will examine a range of issues beginning with five common default scenarios: what are the reactions of the respective parties; what makes sense; and how are litigators contending with these clauses where defaults occur. 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? Both landlords and tenants are trying to build flexibility and control into their leases. How can competing interests co-exist? How are litigators contending with these clauses where defaults occur? Learn how these issues are addressed from the perspective of a landlord, a tenant, and a litigator in today’s market conditions.

Moderator:
James Papadimitriou, Partner, McCarthy Tétrault LLP

Panel:
Julie Desrochers, Partner, Gowlings LLP
Stéphanie La Rocque, Partner, De Grandpré Chait LLP
Julie Salvail, Director, Legal Affairs, Magil Laurentian Realty Corporation


SESSION B3:
WHAT IS THE TRUE COST OF OCCUPANCY, WHY TENANTS ARE CONCERNED ABOUT IT, AND WHAT LANDLORDS NEED TO UNDERSTAND

Most tenants worry about the cost and performance certainty of the buildings and the space that they occupy. This session will examine cost certainty and additional rent issues including: the increasing frequency of lease audits, the occurrence of uncontrollable capital expenditures, e.g. curtain walls, leaky building envelopes, deteriorating exterior marble facing. Do landlords and tenants ever really have a handle on the true cost of occupancy? Can a landlord accurately disclose a ten year plan for capex and operating costs? If the building supports the tenant brand, then how do you ensure building performance over the long term is consistent with the brand? What leverage does a tenant have when the building stops making the grade?

Moderator:
Renée Vézina, Vice President, Legal, Oxford Properties Group

Panel:
Robert Giglio, Director of Leasing, Bentall Kennedy (Canada) LP
Catherine Guertin, Partner, Borden Ladner Gervais LLP
Andréanne Lavallée, Senior Manager, Real Estate Consulting, Raymond Chabot Grant Thornton 
Danielle Lavoie, Vice President, Property Management, Strathallen Capital Corp.


11:50 AM
INFORMAL LUNCHEON
LUNCHEON REFRESHMENTS
MINI ROUNDTABLE DISCUSSIONS – WITH THE EXPERTS AND YOUR PEERS!

Take advantage of this opportunity to participate in informal discussions on the dynamics of key legal issues, market trends, and transaction activity. Tap into the minds of experts, gain insight into proven strategies, and share experiences with your peers. You will have an opportunity to be part of one of the following small discussion groups that will be held as an extension of the luncheon. Choose from one of the following discussion topics:

  1. Downtown Office Market
  2. Industrial Leasing Market
  3. Retail Leasing Market Trends
  4. The Continuing Debate Over Operating Costs
  5. Green Buildings and New Office Developments: An Update
  6. Five Lease Clauses That Do Not Get Enough Respect
  7. The Challenges of Leasing in Mixed-Use Developments

If your preference is to sit at another table, that is fine. Several will be available for individuals to do their personal networking.


1:00 PM
CREATING THE PERFECT LEASE AND CLOSING THE TRANSACTION: WHAT ARE MAJOR POTENTIAL ISSUES AND HOW CAN THEY BE RESOLVED?

An interactive session featuring three real estate lawyers who will represent the various parties and points of view that are usually involved in structuring a lease and completing a negotiation. Successive versions of standard lease provisions will be presented, e.g. right of first refusal, right to extend, default. Potential variations will be outlined, explained and discussed by the panel, comparing the position of the landlord to the perspective of a tenant. What are the issues and sticking points when negotiating in today’s market and what are the arguments used to reach the middle ground? How long should it take to finalize a leasing transaction? Variations for retail, office and industrial space will also be used. Legal, logical, and business justifications for the changes requested by each lawyer will be made. The implications of the changes to each party will be also discussed.

Speakers:
Stéphanie Beauregard, Attorney, Delegatus Legal Services Inc.
Steven Chaimberg, Partner, Lapointe Rosenstein Marchand Melaçon LLP 
René Gauthier, Partner, Gascon & Associates LLP

Please click on the links below for the presentations:


2:00 PM
CONCURRENT SESSIONS (Select C1,C2 or C3)
SESSION C1:
WORK, LIVE, PLAY & LEARN: HOW ADAPTIVE RE-USE AND DEVELOPMENTS IN THE INNER CITY ARE RESPONDING TO THIS TREND? WHAT ARE THE PRIORITIES OF TODAY’S OFFICE TENANTS?

“The most efficient and productive cities and regions are ones in which people are thinking and working – not sitting in traffic. The shift toward the urban core is increasing in major cities across Canada. The coming decade will see greater concentrations of people, increasing densities, and further clustering of industry, work and innovation in cities. Alongside that will come ever more concentrated economic opportunity.” Richard Florida

Every strong community has a vibrant mixed-use core where people gather: where commerce, culture, recreation, entertainment, education and inspiration meet. This session will examine some of the trends of corporate space users in Montreal, and their implications for the real estate market. What type of innovative and successful projects are emerging in the inner city areas? How is the concept of “work, live, play and learn” applying to the Montreal market? This session will examine the new office developments, the significant evolution of the “brick and beam” market, and the move towards more innovative workplace environments for corporate real estate.

Moderator:
Luciano D’Iorio, President, Terramont Real Estate Services Inc.

Panel:
Yves Bouchard, Director of Leasing, Office, Eastern Canada Portfolio, The Cadillac Fairview Corporation Limited
Marie-France Desrochers, Senior Manager, Corporate Accounts, Devencore Newmark Knight Frank
Natalie Voland, President, Gestion immobilière Quo Vadis inc.


SESSION C2:
RECENT CASE LAW: IMPLICATIONS FOR LEASING AND OTHER REAL ESTATE ACTIVITIES

A fast paced analysis and review of significant legal cases and judgments that developers, landlords, tenants, brokers, lenders, and lawyers practicing in the real estate field need to be aware of and understand. The focus will be on practical information on important precedents that can have an impact on all parties involved in commercial real estate transactions and activity.

Speakers:
Louis-Martin Dubé,
 Partner, Lavery, de Billy LLP
Denis Paquin, Partner, Fasken Martineau LLP


SESSION C3:
INDUSTRIAL LEASING TRENDS IN THE GREATER MONTREAL AREA: IS IT STILL A TENANTS’ MARKET?

The session will open with a brief overview of the demand side of the Montreal industrial market: logistics and warehousing vs. heavy uses. What are the major trends in this leasing market? What is the pace of deal flow? What are some examples of deals that have recently been completed? How does leasing compare in Laval and the North vs. the South Shore vs. the West Island and other submarkets? What type of space is becoming obsolete and what is not? How are industrial tenant requirements changing, and what recent landlord initiatives are addressing this demand? How have values of B and C buildings been impacted over the past year? What does the future hold for these assets and other obsolete types of properties? What are the environmental challenges of dealing with contaminated sites?

Moderator:
Jean-Marc Dubé, Vice President, Colliers International

Panel:
Brandon Allen, Commercial Real Estate Advisor, DTZ, a UGL company
Michel Cohen, President, Vista Properties
Carmen De Angelis, Vice President, Leasing, Olymbec
Joe Iadeluca, Senior Vice President, Eastern Canada, Dundee Industrial REIT


3:00 PM
CLOSING SESSION:
SENIOR EXECUTIVE ROUNDTABLE: WHAT ASSET MANAGEMENT AND LEASING STRATEGIES ARE YOU USING TO COMPETE WITH NEWER DEVELOPMENTS AND CHANGING TENANT NEEDS?

Virtually every new development in today’s market is being designed with LEED certification or some high performance metric in mind. However, new construction and adaptive re-use still only represents 1% of the building stock. What are the options facing the remaining 99% of buildings with respect to enhancing their energy and environmental performance in general? Is the average tenant looking for a greener and more innovative workplace environment? What steps can owners of existing buildings take to improve the operational efficiencies of their properties and to ensure that their space remains competitive in the market? What can you do with B or C buildings to maintain or improve their Net Asset Value? This session will examine specific asset management, marketing, and capital investment strategies that landlords are employing in the Montreal market to remain their competitiveness.

Moderator:
Tom Godber, Senior Vice President and Principal, Avison Young Quebec

Panel:
Mario Bédard, Senior Vice President, Quebec and the Maritimes, Bentall Kennedy (Canada) LP
Michel Bouchard, Co-Chief Operating Officer, The Redbourne Group
Yves-André Godon, Senior Vice President, Eastern Canada, Triovest Realty Advisors Inc.
Peter Picciola, Vice President, Leasing & Development, Montreal, Canderel Management


4:00 PM
ADJOURNMENT