LOCATION: Downtown Core, Toronto, ON
TOPLINE: Tech may be driving the office market; however, it is a landlord’s market and quality office listings are being pursued by multiple tenants with solid covenants. Here is how we solved for Motoinsight’s commercial real estate needs.
Toronto has the lowest downtown office vacancy rate in North America. A burgeoning tech sector drives demand, increases competition for space and challenges office leasing norms. Motoinsight represents the incredible innovation and entrepreneurial growth taking place in Toronto.
The company has revolutionized the car buying experience and has enhanced the relationship between manufacturers, dealerships and consumers. Motoinsight’s success resulted in the need to hire more talent and significantly grow their office from 5,000 sq. ft. to 20,000 sq. ft. in Toronto’s downtown core. In addition to more square footage.
Motoinsight needed an office solution that would be a catalyst for employee creativity and innovation, while also maximizing efficiency and meeting budgetary and time constraints.
Motoinsight partnered with CBRE’s Bethell, Cairns and Calcutt Team in 2018. Even with limited available space in the downtown core, the team sought to provide Motoinsight with a holistic, long-term solution. With only six large blocks of office space on the market at the time, Bethell, Cairns and Calcutt tapped into their network and worked tirelessly to produce an ideal outcome despite long odds. Industry-leading market intelligence and broker speed identified an upcoming vacancy that perfectly aligned in terms of location, fit-out, budget and timelines. The significant remaining challenge was the need to align risk-averse office leasing sensibilities with the needs of a fast-moving and growing tenant.
CBRE was able to leverage a strong relationship with the landlord to deliver an in-depth overview of Motoinsight’s business plan and financial backing. By understanding the client and having the trust of key stakeholders, CBRE was able to bridge the gap between landlord and tenant to ensure that challenging lease terms were avoided.
Tech companies require brokers who understand the tech sector, can move at their pace and are able to educate stakeholders about this growing segment of the market. The partnership between Motoinsight and CBRE represents both the next generation of office users and the evolution of real estate services to support them.
CBRE Forward featured Motoinsight as a Forward Thinker. See insights from CEO, Andrew here.