95: Commercial Real Estate Opportunities in the Okanagan with Venture Commercial's Chris & Jason Wills

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Welcome back to the Colonial
Estate Podcast.

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I'm your host, Taylor Atkinson.

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Borgers broker too, I heard.

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Yeah, I missed that part.

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And I am your real estate agent

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host, Matt Glenn.

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I thought you were the one that

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was supposed to have no brain.

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I honestly do not have a brain.

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I have done some questionable shit
in the last few days.

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Yeah, well, kids will do that to
you, right?

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Yeah, honestly, it's real.

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You get told about it, then it

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happens, and it's real.

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Yeah, yeah.

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Well...

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Only another eight months and then

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you'll be like in the next phase.

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another eight months and then

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you'll be like in the next phase.

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Yeah, exactly.

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Yeah.

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How's everything outside of that?

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Honestly, it's awesome.

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Being a father to two kids has

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been awesome.

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It's been great, but my brain is

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still getting eaten away, it feels
like.

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But it's been great.

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Work has been pretty good.

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Tariffs have sucked, honestly.

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Hearing about this all the time.

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I have showings booked.

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Like I had a fourplex for sale.

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Actually, half of it is still for
sale.

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We had like showings booked,
right?

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So we had, I don't know, 12
showings over the weekend.

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Tariffs get announced coming in
again.

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Like half the show is canceled.

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So we haven't talked about this at

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all.

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been we haven't talked about this

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at all.

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I've spoken to a couple other

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people, but I know you and I were
like, and everyone was pumping

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busy through the winter, which was
really strange.

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Spring, I was prepared just to
like.

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you know keep going i thought it
was going to be a crazy market it

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has been much quieter like first
yeah it's gotten pretty quiet like

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super thankful i still have quite
a bit of stuff going on but yeah

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it has been like noticeably
quieter and it's just because yeah

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it's gotten pretty quiet like
super thankful i still have quite

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a bit of stuff going on but yeah
it has been like noticeably

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quieter and it's just because the
uncertainty people don't know are

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you gonna buy a house and our
economy collapses next month yeah

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right like it's just like there's
not a really good answer for that

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because nobody knows yeah i agree
it's not really the house price

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what people were yeah scared of
before like oh am i gonna buy at

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the peak or i want to buy at the
bottom yeah now it's just like am

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i gonna have my job am i gonna be
able to be invaded in a couple of

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months you know like there's so
much uncertainty and it's just

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hard when you're making the
biggest decision of your life yeah

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it sucks and you can sympathize
with it but uh yeah i agree it's

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not really the house price what
people were yeah scared of before

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like oh am i gonna buy at the peak
or i want to buy at the bottom

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yeah now it's just like am i gonna
have my job am i gonna able to be

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invaded in a couple of months you
know like there's so much

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uncertainty and it's just hard
when you're making the biggest

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decision of your life yeah it
sucks and you can sympathize with

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it but uh yeah yeah It just kind
of is what it is.

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Yeah.

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Time will tell, I guess.

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In a few more weeks, maybe things
will balance out.

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I'd say overall, I'd say overall,
I'm pretty optimistic about the

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future.

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It's just like, tell me to get

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some answers here.

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Yeah.

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Yeah.

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I think right now.

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Tariffs too, they affect so many
different things.

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So I have a friend who has a local
tool business, Snap -on Truck.

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Nice.

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I'm talking to him.

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He's like, yeah, so all of our
tools are made in the US.

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Yeah.

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So it's like, okay, so I guess

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Snap -on is taking on the tariffs
for a while, but I don't know how

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long they can sustain that for.

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That's, yeah.

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Yeah.

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Crazy.

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You think about this for
everything, right?

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There's things you don't even
know.

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I just happen to know that because
he's like one of my best friends.

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Yeah.

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So you think about the tariffs and

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it's not just the 25 % tariff.

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Like you have all these trucks,

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like for building material, if
you're renovating your house or

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building a new house, all the
materials, like let's say all the

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faucets or whatever are all from
the US or whatever it is.

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So they've been getting shipped up
for a century, it feels like.

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And then you have all these
things.

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But then when the tariffs come in,
all of a sudden those trucks

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aren't coming in as much, right?
So now to ship the one thing that

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you need from the States, even if
you buy everything else from

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Canada.

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You think about You don't just put

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it on the trucks that are going in
the U .S.

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anyway.

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So now your shipping costs go up.

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Yeah.

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It's the 25 % tariff and then

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that.

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And I feel like there's a ton more

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of those kinds of things that you
don't even really know.

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Well, and to magnify it, and this
is what we spoke about with

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Brandon Augvanson a couple
episodes ago, was like, so

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inflation's going up because all
these tariffs, but GDP is going

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down because economically people
are struggling, you know, job

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losses, people aren't spending as
much.

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So it's like the divide is just
growing on both sides.

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Yeah.

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Like there's not like the.

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the lever to pull of the interest
rates because he might go up.

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Yeah.

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So like, at least in the short

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term, I don't know what long term,
but yeah, like all these things

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just add to uncertainty.

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Yeah.

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So like, you just don't know.

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Well, today's guests that we had

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on two guests, Yeah.

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guests that we had on two guests,

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twin brothers, Jason and Chris
Wills.

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Boucherie Boys represent.

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Thank you.

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Although they played basketball,
so I can't get on board with that.

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I got cut in grade 10.

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I'll never forget that.

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But yeah, awesome guys.

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Really enjoyed the chat with them.

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And funny enough, we're talking
about tariffs now, but they really

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started out venture commercial,
which you guys will see their

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signs everywhere.

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They started that in COVID.

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So we're talking about tough times
right now and tariffs and

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uncertainty.

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Well, here's two guys that...

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started in a very difficult time,
especially in the commercial

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market with leasing and have been
wildly successful.

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When you talk to them, they
obviously know what's going on.

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They are extremely knowledgeable.

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I knew they were brothers.

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I didn't know they were twins.

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And then when they came and they

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looked the same, I was like, man,
they must be close in age.

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And it turns out it's like
minutes.

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Yeah, they were awesome.

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And like you said, I mean, they

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just, they seem so passionate
about the commercial side and like

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they're into leasing and sale
purchasing side.

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Like it just, it's a good
combination, but like you really

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need to know how to structure
leases or how to read them to set

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up the opportunity.

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My other big takeaway on this is I

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need to get to.

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the mall to get some outfits i

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can't believe we broke that news
to you i know when did this come

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out the bay is closing like screw
tariffs like this is more

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important to me this is the only
place i shop once every four years

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i told emily i'm like i can't shop
at all now these are the clothes

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for the rest of my life i hope you
like the things i have because

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i'll never get yeah and she does
not so but yeah i think you guys

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are going to find a ton of value
in this show if you want to know

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you know more about commercial
stuff reach out to them they're a

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great resource also Apparently
really good basketball players.

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So we'll see them on the courts.

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And this episode, like every

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episode, sponsored by Century 21
Assurance Realty, best brokerage

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in town.

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We are growing, building agents.

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So if you're an agent looking for
a more cooperative brokerage or

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looking for some help, we're a
great brokerage to talk about.

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Or if you're a buyer or seller
looking for an agent, give us a

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shout.

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Love to help you.

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All right.

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Enjoy the show.

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Okay, welcome to the Kelowna Real
Estate Podcast.

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Wills Brothers, how are you doing?
Excellent.

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Well, we normally like to start
our show with like, hey, what's

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your perfect Friday look like?
But since we have... twin brothers

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here.

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We assume that answer may be

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similar, may be different, but
let's just start with like venture

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commercial.

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How'd you guys start and tell us a

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bit of the background story?
Yeah.

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Venture commercial has really
started just more out of

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necessity.

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I've been in the industry for

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quite some time.

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Been fortunate to learn from a

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couple of great mentors, including
my father, and we had built a

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company up.

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to something that was pretty cool

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in the Okanagan.

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We joined forces with a national

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brokerage for four years.

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And really at that point, I was

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really kind of yearning to have a
bit of a brokerage and commercial

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real estate brokerage that was
more approachable and had the

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opportunity to market the way that
we wanted to and try to think

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outside the norms a little bit.

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And I felt that organization we

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were with, we were in a bit of a
box and quickest way for me to

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want to.

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Be inspired.

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Is it to be told no?
And I love the opportunity to

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start something where we could
actually be our own bosses.

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And if we had really cool ideas or
we wanted to do certain drone

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elements, we want to do that, that
nobody could ever say no. And

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Venture Commercial was started in
March 2020.

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Yeah, we're really, really
excited.

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What we learned was that we were
very lucky to be in the Okanagan.

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And it really is about the
relationships we have, not

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necessarily the business card.

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You know, so when we decided to

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leave Collier's, we knew that we
had a pretty good grasp on

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relationships here in the Okanagan
and kind of what propelled us to,

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I think, our success.

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Were you guys doing residential

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before as well, or was it always
all commercial?

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you guys doing residential before
as well, or was it always all

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commercial?
No, always all commercial.

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Like our family's always been in
commercial real estate.

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Our dad has worked for one of the
largest developers in the

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Okanagan.

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Prior to that, he helped redevelop

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Gastown down in Vancouver.

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So commercial real estate's really

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in our blood.

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As far as we can remember, our

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first jobs were power washing
strip centers in Langley.

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So to be honest, we've been doing
it for a really long time.

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I wouldn't know how to sell
residential for the life of me.

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We didn't even know where to
start.

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even know where to start.

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March 2020 is a funny, great time

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00:07:28,620 --> 00:07:26,560
to start for you guys.

253
00:07:26,560 --> 00:07:27,360
Yeah.

254
00:07:27,360 --> 00:07:27,900
Well, actually.

255
00:07:27,900 --> 00:07:28,040
Yeah.

256
00:07:28,040 --> 00:07:28,300
You know.

257
00:07:28,300 --> 00:07:29,980
Most difficult month in history to

258
00:07:29,980 --> 00:07:30,160
start.

259
00:07:30,160 --> 00:07:30,600
Yeah.

260
00:07:30,820 --> 00:07:33,940
You know, at that time, you know,
no one knew kind of had the

261
00:07:33,940 --> 00:07:35,440
crystal ball of what was about to
happen.

262
00:07:35,440 --> 00:07:38,280
However, we left the week of the
mandatory shutdown.

263
00:07:38,280 --> 00:07:42,400
And, you know, we laugh and joke,
but the reality was, was we leased

264
00:07:42,400 --> 00:07:42,900
an office space.

265
00:07:42,900 --> 00:07:44,040
We were sitting there putting

266
00:07:44,040 --> 00:07:44,580
furniture together.

267
00:07:44,580 --> 00:07:46,580
And as of Monday, the mandatory

268
00:07:46,580 --> 00:07:47,580
shutdown hit and our world's
changed.

269
00:07:47,580 --> 00:07:48,880
It really turned from us building
our business to supporting our

270
00:07:48,880 --> 00:07:50,460
clients and having a lot of
conversations with landlords and

271
00:07:50,580 --> 00:07:50,980
with tenants on how to navigate
through the COVID crisis.

272
00:07:50,980 --> 00:07:52,080
Gives you some credibility too.

273
00:07:52,080 --> 00:07:53,520
you some credibility too.

274
00:07:53,520 --> 00:07:54,180
going through it yourself.

275
00:07:54,180 --> 00:07:57,820
Yeah, I think that it keeps you

276
00:07:57,820 --> 00:07:59,990
honest, to be quite honest with
you.

277
00:07:59,990 --> 00:08:01,110
I like the adversity.

278
00:08:01,110 --> 00:08:02,950
I think that, you know, no matter

279
00:08:02,950 --> 00:08:04,510
where venture commercial goes and
success that either we see or

280
00:08:04,510 --> 00:08:06,710
people that we work with see,
there's the humbleness, the

281
00:08:06,710 --> 00:08:08,330
grassroots and the way that it
started.

282
00:08:08,330 --> 00:08:10,370
And a lot of it was just basically
building a website.

283
00:08:10,370 --> 00:08:12,630
you know, ourselves or coming up
with some marketing initiatives

284
00:08:12,630 --> 00:08:15,190
and drone footage or gimbal
footage, all ourselves.

285
00:08:15,410 --> 00:08:19,690
I do look back and I'm kind of
fond of those days because it was

286
00:08:19,690 --> 00:08:23,530
like, okay, you either, you know,
lie down and you just give up or

287
00:08:23,530 --> 00:08:24,630
you say not today.

288
00:08:24,630 --> 00:08:27,170
And if I had maybe 20 or 25 active

289
00:08:27,170 --> 00:08:28,780
deals, I think I lost half of them
within one week.

290
00:08:28,780 --> 00:08:30,080
You probably had some experience.

291
00:08:30,080 --> 00:08:31,080
It didn't even really matter if

292
00:08:31,080 --> 00:08:31,820
they're binding or not.

293
00:08:31,820 --> 00:08:32,900
People said, I'm not moving

294
00:08:33,140 --> 00:08:33,419
forward with this.

295
00:08:33,440 --> 00:08:34,820
Nobody knew what that world looked

296
00:08:34,820 --> 00:08:36,720
like as far as what can we
enforce?

297
00:08:36,720 --> 00:08:39,980
You know, is there any penalty?
It was a really weird time.

298
00:08:40,100 --> 00:08:40,220
Yeah.

299
00:08:40,220 --> 00:08:41,260
So what's your brokerage like now?

300
00:08:41,260 --> 00:08:44,179
How is it set up?
Do you have a managing broker?

301
00:08:44,179 --> 00:08:47,070
Are any of you guys a managing
broker?

302
00:08:47,070 --> 00:08:49,570
No, no, no. So we have a managing
broker.

303
00:08:49,570 --> 00:08:52,790
We've got actually our executive
assistants working to get her

304
00:08:52,790 --> 00:08:53,210
managing brokers.

305
00:08:53,210 --> 00:08:54,150
So we'll have two managing brokers

306
00:08:54,150 --> 00:08:55,610
by the end of the year.

307
00:08:55,610 --> 00:08:56,770
We have eight full -time active

308
00:08:56,770 --> 00:08:57,330
commercial agents in -house.

309
00:08:57,330 --> 00:08:58,990
So they're all dedicated only to

310
00:08:58,990 --> 00:08:59,830
commercial real estate.

311
00:08:59,830 --> 00:09:01,110
So with venture commercial, we

312
00:09:01,110 --> 00:09:02,230
only do commercial real estate.

313
00:09:02,230 --> 00:09:03,710
We stay exactly in our lane.

314
00:09:03,790 --> 00:09:04,990
We actually don't even sell
businesses.

315
00:09:05,410 --> 00:09:08,410
We really try to stay with what we
do really well and what we're

316
00:09:08,410 --> 00:09:08,830
passionate about.

317
00:09:08,830 --> 00:09:10,470
We've got an office down on

318
00:09:10,470 --> 00:09:10,630
Bernard.

319
00:09:10,630 --> 00:09:11,910
We've got two full -time support

320
00:09:11,910 --> 00:09:12,110
staff.

321
00:09:12,110 --> 00:09:14,030
And we do have a couple of people

322
00:09:14,030 --> 00:09:17,610
who might be joining as well on
the brokerage side.

323
00:09:17,610 --> 00:09:17,890
the Cool.

324
00:09:17,890 --> 00:09:19,790
I see your signs everywhere, which

325
00:09:19,790 --> 00:09:20,190
is kudos to you guys.

326
00:09:20,190 --> 00:09:21,770
A lot of them are leasing signs.

327
00:09:21,770 --> 00:09:23,850
Can you tell us about the business
model, like percentage wise or

328
00:09:23,850 --> 00:09:27,530
just high level, how much leasing
you guys do and how much in sales?

329
00:09:27,530 --> 00:09:29,870
Like, how's that split up?
Yeah, we've been asked that a lot

330
00:09:29,870 --> 00:09:29,950
lately.

331
00:09:29,950 --> 00:09:32,030
I have a passion for leasing, but

332
00:09:32,030 --> 00:09:34,470
it's not the only thing we do.

333
00:09:34,470 --> 00:09:35,750
In Kelowna particularly, I see

334
00:09:35,750 --> 00:09:39,050
there's a lot more opportunity for
leasing when you're an active

335
00:09:39,050 --> 00:09:41,210
agent, where in Vancouver, you
might see a little bit more major

336
00:09:41,210 --> 00:09:43,990
markets, you might see a little
bit more of a balance.

337
00:09:43,990 --> 00:09:46,870
Our brokerage in the last two
years have done about 60 % leasing

338
00:09:46,870 --> 00:09:47,910
to 40 % sales.

339
00:09:47,910 --> 00:09:49,610
It's changed with some of our

340
00:09:49,930 --> 00:09:50,330
brokers.

341
00:09:50,330 --> 00:09:51,330
Some of our brokers are staying a

342
00:09:51,330 --> 00:09:52,850
little bit more in certain
wheelhouses as far as investment.

343
00:09:52,850 --> 00:09:57,490
But I'm not going to lie, like
some of my top tier clients own

344
00:09:57,490 --> 00:10:00,350
major strip centers that I've been
fortunate to represent for.

345
00:10:00,350 --> 00:10:00,770
17, 18 years.

346
00:10:00,770 --> 00:10:03,150
I'm a sucker for it, but I love it

347
00:10:03,150 --> 00:10:04,150
more than anything.

348
00:10:04,150 --> 00:10:06,070
So I think a lot of that signage

349
00:10:06,070 --> 00:10:08,230
you'll see, you know, if they're
commercial properties, they're a

350
00:10:08,230 --> 00:10:09,310
little bit more, you know, high
exposure.

351
00:10:09,590 --> 00:10:11,530
You do get to see them a little
bit more often.

352
00:10:11,530 --> 00:10:11,670
Yeah.

353
00:10:11,670 --> 00:10:13,550
And I think within the Okanagan

354
00:10:13,550 --> 00:10:16,730
being in the Valley we're in, it's
hard to specialize in one asset

355
00:10:16,730 --> 00:10:18,650
class or into sales and or
leasing.

356
00:10:18,650 --> 00:10:20,290
The reality is, is, you know,
we've really pride ourselves on

357
00:10:20,290 --> 00:10:20,750
service and our clients.

358
00:10:20,750 --> 00:10:22,990
And I think that's why we've had

359
00:10:22,990 --> 00:10:23,030
success.

360
00:10:23,030 --> 00:10:24,610
But that also comes with some of

361
00:10:24,610 --> 00:10:28,540
the smallest, you know, lease
deals that can turn into some of

362
00:10:28,540 --> 00:10:29,180
the largest sales.

363
00:10:29,180 --> 00:10:29,280
Right.

364
00:10:29,280 --> 00:10:30,300
You never know where the business
comes from.

365
00:10:30,300 --> 00:10:33,280
So we're very fortunate to have
clients that trust us on both

366
00:10:33,280 --> 00:10:34,260
leases and sales side of it.

367
00:10:34,260 --> 00:10:35,740
And naturally, it works for us

368
00:10:35,740 --> 00:10:39,540
when, you know, in fact, we always
like to say there's no deal too

369
00:10:39,540 --> 00:10:41,980
small, you know, and knowing that
that small group who might just be

370
00:10:41,980 --> 00:10:44,520
open, you know, a software company
could turn into buying a whole

371
00:10:44,600 --> 00:10:45,960
block down in a major city.

372
00:10:45,960 --> 00:10:46,060
Yeah.

373
00:10:46,060 --> 00:10:48,380
Can you kind of highlight a little
bit, triple net lease, gross

374
00:10:48,380 --> 00:10:49,460
lease?
Obviously, a lot of landlords that

375
00:10:49,840 --> 00:10:52,000
are in the residential space
really love the commercial space

376
00:10:52,000 --> 00:10:53,760
because BC Tenancy Act is kind of
handcuffing us.

377
00:10:53,760 --> 00:10:56,100
Why is it so beneficial in the
commercial space?

378
00:10:56,100 --> 00:10:59,200
How does that look for a lease?
Well, yeah, you raise a great

379
00:10:59,200 --> 00:10:59,480
point.

380
00:10:59,480 --> 00:11:00,700
I guess going back a step in

381
00:11:00,700 --> 00:11:03,580
commercial real estate, you can
either own the buildings, you can

382
00:11:03,580 --> 00:11:03,980
lease the buildings.

383
00:11:03,980 --> 00:11:05,860
As a commercial agent, you can

384
00:11:05,860 --> 00:11:06,760
make money doing both, which is
nice.

385
00:11:06,760 --> 00:11:08,940
I'm fortunate to own both
residential and commercial

386
00:11:08,940 --> 00:11:10,920
properties, and I absolutely steer
towards being a commercial

387
00:11:10,920 --> 00:11:13,080
landlord over residential
landlord, just because you can get

388
00:11:13,080 --> 00:11:14,640
two parties that can agree on.

389
00:11:14,780 --> 00:11:15,820
pretty much any terms.

390
00:11:15,820 --> 00:11:18,020
There's no tenancy act that's
governed to exactly the way that

391
00:11:18,020 --> 00:11:20,560
deposits are held or terms can be
terminated or possession dates.

392
00:11:20,560 --> 00:11:23,260
Everything is pretty fluid
depending on what a commercial

393
00:11:23,260 --> 00:11:25,280
lease looks like and who is
negotiating on both sides.

394
00:11:25,280 --> 00:11:28,000
So really, when you're a
commercial landlord, you have a

395
00:11:28,000 --> 00:11:32,130
lot more say in the way that you
want to deal with your buildings,

396
00:11:32,270 --> 00:11:35,210
dictate how things are being ran,
deposits that you can be held,

397
00:11:35,210 --> 00:11:37,330
monthly rents or annual rents
increases.

398
00:11:37,330 --> 00:11:39,650
They're not governed or capped.

399
00:11:39,650 --> 00:11:40,610
That's all fair market.

400
00:11:40,610 --> 00:11:43,790
A commercial landlord has the
option of just doing a gross

401
00:11:43,790 --> 00:11:44,750
lease, which is fine.

402
00:11:44,750 --> 00:11:46,130
You do notice more in commercial

403
00:11:46,210 --> 00:11:49,000
real estate, the evolution of a
triple net lease, which allows a

404
00:11:49,000 --> 00:11:51,880
landlord to be able to recoup any
costs or controllables that change

405
00:11:51,880 --> 00:11:52,400
over the years.

406
00:11:52,400 --> 00:11:53,960
Property taxes, no removal of

407
00:11:53,960 --> 00:11:56,200
common area maintenance and
everything can actually be charged

408
00:11:56,200 --> 00:11:59,060
back to the commercial tenants,
typically on an annual basis

409
00:11:59,060 --> 00:12:00,320
through camera conciliations.

410
00:12:00,320 --> 00:12:02,740
So being a commercial landlord is,

411
00:12:02,740 --> 00:12:06,260
in my opinion, a very good thing
to be.

412
00:12:06,260 --> 00:12:09,040
Yeah, I think to oversimplify, the
residential is governed by the

413
00:12:09,040 --> 00:12:11,300
Residential Tenancy Act, whereas
the commercial transaction is

414
00:12:11,300 --> 00:12:12,220
governed by the lease.

415
00:12:12,220 --> 00:12:14,560
And the lease can differ from any

416
00:12:14,560 --> 00:12:17,120
type of landlord or developer.

417
00:12:17,260 --> 00:12:17,480
Awesome.

418
00:12:17,480 --> 00:12:21,700
So are you guys, are you involved
every year with a renegotiation of

419
00:12:21,700 --> 00:12:24,440
the lease or are you just?
It depends.

420
00:12:24,440 --> 00:12:24,980
Yeah.

421
00:12:25,080 --> 00:12:26,980
And typically a term will be set

422
00:12:26,980 --> 00:12:27,940
between three, five, four years.

423
00:12:27,940 --> 00:12:28,500
It doesn't really matter.

424
00:12:28,500 --> 00:12:30,060
It depends what the two parties
agree on.

425
00:12:30,060 --> 00:12:30,920
We'll help facilitate that.

426
00:12:30,920 --> 00:12:31,940
transaction upfront.

427
00:12:31,940 --> 00:12:35,000
If we're fortunate to represent
the landlord, a lot of the times

428
00:12:35,000 --> 00:12:38,760
they'll engage us to actually work
through the whole process of the

429
00:12:38,760 --> 00:12:41,740
life term, which is something that
we've seen a lot of success with.

430
00:12:41,740 --> 00:12:44,560
It's representing not just the
initial deal, but if there's

431
00:12:44,580 --> 00:12:48,380
issues that come up with the
lease, how can they be solved?

432
00:12:48,380 --> 00:12:50,260
What do renewal terms look like?
Extensions, approvals, process

433
00:12:50,260 --> 00:12:51,280
throughout the whole.

434
00:12:51,280 --> 00:12:53,460
We can be part of that whole

435
00:12:53,460 --> 00:12:53,740
process.

436
00:12:53,740 --> 00:12:54,760
We can talk about like

437
00:12:54,760 --> 00:12:56,500
opportunities in the market in a
second.

438
00:12:56,500 --> 00:13:02,220
I guess this would be a good
segue, but do you see a lot of the

439
00:13:02,220 --> 00:13:05,170
opportunities in the lease?
Like when you're going to analyze

440
00:13:05,170 --> 00:13:08,510
to list a building?
or I guess to buy either end, do

441
00:13:08,510 --> 00:13:12,650
you look at it and go, okay, well,
you know, they're on a gross

442
00:13:12,650 --> 00:13:13,010
lease.

443
00:13:13,230 --> 00:13:15,150
If we were able to switch this

444
00:13:15,150 --> 00:13:19,430
over to a triple net, there would
be a value add there because I

445
00:13:19,430 --> 00:13:20,310
have commercial as well.

446
00:13:20,310 --> 00:13:22,030
And it has been more difficult to

447
00:13:22,030 --> 00:13:24,290
switch tenants over to a triple
net.

448
00:13:24,290 --> 00:13:27,090
Mostly I think because, you know,
they're a little bit nervous of

449
00:13:27,090 --> 00:13:28,590
those expenses that are going up,
you know.

450
00:13:28,590 --> 00:13:32,780
pretty high with inflation on
insurance or property tax or

451
00:13:32,780 --> 00:13:35,660
anything that you really don't
have control over or even just

452
00:13:35,660 --> 00:13:36,080
general maintenance costs.

453
00:13:36,080 --> 00:13:37,900
So I feel for the tenant in that

454
00:13:37,900 --> 00:13:40,340
regard, but also it shouldn't be
the burden of the landlord.

455
00:13:40,340 --> 00:13:43,780
But yeah, I guess to rewind and
get back to the question, is

456
00:13:43,780 --> 00:13:46,080
leasing the majority opportunity
that you guys see to value add?

457
00:13:46,080 --> 00:13:47,000
Oh, it's such a good question.

458
00:13:47,000 --> 00:13:48,060
Loaded question.

459
00:13:48,060 --> 00:13:52,220
I think that if you've got a
client that has an existing

460
00:13:52,800 --> 00:13:53,900
portfolio, where we've seen a lot
of success.

461
00:13:53,900 --> 00:13:56,500
The reason why we've been able to
represent some of these developers

462
00:13:56,500 --> 00:13:58,260
and clients that have had long
-term runs is a great commercial

463
00:13:58,260 --> 00:13:58,860
agent.

464
00:13:58,860 --> 00:13:59,940
Typically, we'll find an

465
00:13:59,940 --> 00:14:01,820
opportunity if they know what
market trends are.

466
00:14:01,820 --> 00:14:05,020
fortunate to work in other markets
and they see what other landlords

467
00:14:05,020 --> 00:14:07,240
are doing and ways to improve
their leases or prove the

468
00:14:07,240 --> 00:14:07,360
situation.

469
00:14:07,360 --> 00:14:09,060
So I think there's a huge upside

470
00:14:09,060 --> 00:14:09,420
on that.

471
00:14:09,420 --> 00:14:10,720
But leases are always evolving and

472
00:14:10,720 --> 00:14:11,020
changing.

473
00:14:11,020 --> 00:14:11,900
And we brought up COVID.

474
00:14:11,900 --> 00:14:13,580
COVID changed commercial leasing
in so many different ways.

475
00:14:13,580 --> 00:14:17,500
As a landlord, when I represent
landlords, the way that we look at

476
00:14:17,500 --> 00:14:20,680
deposits and security, we
scrutinize that so much more than

477
00:14:20,680 --> 00:14:21,860
we ever did before COVID.

478
00:14:21,920 --> 00:14:23,180
So there's a lot of evolution.

479
00:14:23,180 --> 00:14:26,590
I think where there's a lot of
opportunity on the commercial side

480
00:14:26,590 --> 00:14:30,070
is when you've got clients that
maybe have kind of historically

481
00:14:30,070 --> 00:14:33,590
owned the building and they just
thought that's the way to do it.

482
00:14:33,590 --> 00:14:36,210
They inherited leases or they
thought, well, you know what, when

483
00:14:36,210 --> 00:14:38,810
the market was down, we inherited
gross leases or we loved gross

484
00:14:38,810 --> 00:14:42,230
leases because it was stable rent
and clients were happy, tenants

485
00:14:42,230 --> 00:14:42,930
were happy.

486
00:14:42,930 --> 00:14:46,030
Where we really kind of like our

487
00:14:46,030 --> 00:14:47,930
lips is when we find an
undervalued.

488
00:14:47,930 --> 00:14:49,730
opportunity that the markets
changed around it.

489
00:14:49,730 --> 00:14:51,990
Actually, a really great example
is the way that billions are

490
00:14:51,990 --> 00:14:53,620
calculated for measurements.

491
00:14:53,620 --> 00:14:55,140
We had one client on Bernard that

492
00:14:55,140 --> 00:14:56,740
didn't realize that they could
actually gross usable and rentable

493
00:14:56,740 --> 00:14:57,220
up.

494
00:14:57,220 --> 00:14:58,780
As the leases matured and we got

495
00:14:58,780 --> 00:15:02,020
them onto a new program, their
billions expanded by 15%, just to

496
00:15:02,020 --> 00:15:04,920
be able to collect areas that they
actually had the right to

497
00:15:04,920 --> 00:15:05,660
incorporate back into the leases.

498
00:15:05,660 --> 00:15:06,820
That'd be one really great example

499
00:15:06,820 --> 00:15:07,240
of...

500
00:15:07,240 --> 00:15:09,340
You know, I think the client was

501
00:15:09,340 --> 00:15:11,680
quite happy as the market evolved,
particularly in this example,

502
00:15:11,680 --> 00:15:12,120
retail.

503
00:15:12,320 --> 00:15:13,640
Bernard shifted over the last 15

504
00:15:13,640 --> 00:15:14,080
years.

505
00:15:14,300 --> 00:15:17,140
So all of a sudden you got a lot

506
00:15:17,140 --> 00:15:19,360
more national tenants actually
wanting to be downtown.

507
00:15:19,360 --> 00:15:20,880
So they brought that
sophistication of what they'd

508
00:15:20,880 --> 00:15:21,400
expect from other markets.

509
00:15:21,400 --> 00:15:24,500
So there was an evolution in the

510
00:15:24,500 --> 00:15:25,220
way that commercial real estate
grew.

511
00:15:25,220 --> 00:15:29,280
And if you're able to find clients
and portfolios that have done it

512
00:15:29,280 --> 00:15:32,540
historically an older way, that's
where we get to create a lot more

513
00:15:32,540 --> 00:15:34,680
value, which is stuff we really
love to do.

514
00:15:34,680 --> 00:15:35,880
Yeah, it's such a funny thing.

515
00:15:35,880 --> 00:15:37,140
I've been thinking about it a lot

516
00:15:37,780 --> 00:15:40,440
lately because I guess the most
opportunity I see is when I'm

517
00:15:40,440 --> 00:15:42,280
buying a property because exactly
that.

518
00:15:42,280 --> 00:15:43,260
You're scrutinizing it.

519
00:15:43,260 --> 00:15:44,560
You're flipping every stone being

520
00:15:44,560 --> 00:15:46,260
like, oh, here's a value add.

521
00:15:46,260 --> 00:15:47,740
Here's where I could cut costs.

522
00:15:48,400 --> 00:15:50,180
Here's where I could do anything
different.

523
00:15:50,180 --> 00:15:55,110
Once you own the property for a
few years, you get super

524
00:15:55,110 --> 00:15:55,410
complacent.

525
00:15:55,410 --> 00:15:57,230
So do you guys generally like, I

526
00:15:57,230 --> 00:16:00,850
mean, Matt did ask kind of the
annual renegotiation, but do you

527
00:16:00,850 --> 00:16:04,250
guys have any kind of... offer in
terms of like, we'll just do a

528
00:16:04,250 --> 00:16:08,110
review and tell you where the
value add is and then...

529
00:16:08,110 --> 00:16:08,290
Absolutely.

530
00:16:08,290 --> 00:16:09,950
And that's mostly our bread and

531
00:16:09,950 --> 00:16:13,110
butter is just having discussions
with owners and seeing what our

532
00:16:13,110 --> 00:16:16,410
opinion is to how to increase
value and or attracting this to

533
00:16:16,410 --> 00:16:16,870
the building.

534
00:16:17,230 --> 00:16:19,790
I think one of the big ones, when

535
00:16:19,790 --> 00:16:21,630
we talk about different asset
classes, there really are five

536
00:16:21,630 --> 00:16:24,850
families that own a lot of the
landmass here.

537
00:16:25,050 --> 00:16:27,910
So when we're looking at other
opportunities, as the valley has

538
00:16:27,910 --> 00:16:28,910
grown, places where traditionally
it may have been industrial

539
00:16:28,910 --> 00:16:32,930
sections that now all of a sudden
have that... the large residential

540
00:16:32,930 --> 00:16:33,690
components built around it.

541
00:16:33,690 --> 00:16:35,230
How can we convert those?

542
00:16:35,230 --> 00:16:37,870
Looking at those leases and
saying, hey, if we were to demise

543
00:16:38,330 --> 00:16:41,490
these areas here in industrial,
for instance, we are able to build

544
00:16:41,490 --> 00:16:41,650
mezzanines.

545
00:16:41,650 --> 00:16:43,530
And that's something that we've

546
00:16:43,690 --> 00:16:46,910
seen a huge trend on moving in the
Okanagan is the cost of land is

547
00:16:46,910 --> 00:16:47,110
expensive.

548
00:16:47,110 --> 00:16:48,910
The cost of construction is

549
00:16:48,910 --> 00:16:49,050
expensive.

550
00:16:49,050 --> 00:16:50,250
And landlords want to maximize the

551
00:16:50,250 --> 00:16:51,470
amount of buildable air they can
have.

552
00:16:51,470 --> 00:16:54,150
So we're seeing mezzanines being
built into these spaces, which

553
00:16:54,150 --> 00:16:57,310
traditionally would have been a
value add, whereas now it's

554
00:16:57,310 --> 00:16:59,290
actually just increased on the
size that you can.

555
00:16:59,390 --> 00:17:01,610
lease or sell, and they can
actually charge for that, you

556
00:17:01,710 --> 00:17:04,450
know, just as much as they are in
the ground floor area.

557
00:17:04,450 --> 00:17:07,210
That'd be a good example of all
those evolutions in our market.

558
00:17:07,210 --> 00:17:09,770
And it typically is trends from
other markets that have also

559
00:17:09,770 --> 00:17:09,829
experienced.

560
00:17:09,829 --> 00:17:12,250
were you know, this kind of growth

561
00:17:12,250 --> 00:17:14,970
and the land getting so expensive,
what are the finding ways to find

562
00:17:14,970 --> 00:17:16,410
value out?
I think to one of your questions

563
00:17:16,410 --> 00:17:19,050
was our involvement with those
clients typically isn't as, you

564
00:17:19,050 --> 00:17:20,990
know, a consultant on an hourly
fee or anything.

565
00:17:20,990 --> 00:17:25,369
We've been fortunate and it's just
kind of the way that we were

566
00:17:25,369 --> 00:17:28,530
raised is if you can bring value
up front and not just be a

567
00:17:28,530 --> 00:17:30,570
transactional agent, someone
actually that is part of that

568
00:17:30,890 --> 00:17:33,290
relationship from start to finish,
whether it's a tiny little.

569
00:17:33,290 --> 00:17:36,970
lease project at first, if you can
kind of create value and you can

570
00:17:36,970 --> 00:17:40,770
show that expertise and you become
part of that little family, that's

571
00:17:40,770 --> 00:17:42,150
the stuff that we've always loved
to do.

572
00:17:42,150 --> 00:17:46,890
So it happens to work out, you do
a couple of leases and all of a

573
00:17:46,890 --> 00:17:49,250
sudden they want to acquire a
couple more buildings or they want

574
00:17:49,250 --> 00:17:51,650
to sell one or two and stuff.

575
00:17:51,890 --> 00:17:53,630
And that's kind of how our bread

576
00:17:53,630 --> 00:17:54,270
and butter has been.

577
00:17:54,270 --> 00:17:55,330
It's not really through consultant

578
00:17:55,330 --> 00:17:55,970
fees or charging.

579
00:17:55,970 --> 00:17:57,490
And quite honestly, the developer

580
00:17:57,490 --> 00:18:01,450
and the investor also has to buy
into a little bit of the value add

581
00:18:01,450 --> 00:18:02,190
that we have.

582
00:18:02,190 --> 00:18:03,990
We have lots of clients that say,

583
00:18:03,990 --> 00:18:04,750
We're good.

584
00:18:04,750 --> 00:18:07,290
We don't care how other people do

585
00:18:07,290 --> 00:18:07,590
it.

586
00:18:07,590 --> 00:18:09,170
This is the way we've done it.

587
00:18:09,170 --> 00:18:12,210
The absolute truth is we probably
don't create much value for that

588
00:18:12,210 --> 00:18:13,810
client in that relationship.

589
00:18:13,810 --> 00:18:15,610
So maybe we just move to someone

590
00:18:15,770 --> 00:18:17,150
that actually sees that value
because you also don't want to

591
00:18:17,150 --> 00:18:18,710
have to retrain the whole program.

592
00:18:18,710 --> 00:18:20,470
Like if you're happy with it and

593
00:18:20,630 --> 00:18:23,050
it works, I'm going to confuse it
completely by changing.

594
00:18:23,050 --> 00:18:25,330
Let's just use usable versus
rentable.

595
00:18:25,330 --> 00:18:28,590
And I start telling you, you got
to read all the BOMA standards.

596
00:18:28,590 --> 00:18:31,370
You might say, look, I've got a
full -time job somewhere else.

597
00:18:31,370 --> 00:18:33,570
This is a passive income producing
property for me.

598
00:18:33,570 --> 00:18:34,590
Chris, stop it.

599
00:18:34,590 --> 00:18:35,910
You're confusing my world.

600
00:18:36,070 --> 00:18:36,690
You're creating chaos.

601
00:18:36,690 --> 00:18:37,490
You mentioned there's five

602
00:18:37,490 --> 00:18:40,010
families in Kelowna that probably
own the majority, which is totally

603
00:18:40,010 --> 00:18:40,170
fair.

604
00:18:40,170 --> 00:18:41,370
But there are a lot of smaller

605
00:18:41,370 --> 00:18:42,930
landlords that maybe own one or
two spaces.

606
00:18:42,930 --> 00:18:45,950
You cannot be up to speed on
education of even just square

607
00:18:45,950 --> 00:18:47,310
footage, how much it's leasing
for.

608
00:18:47,310 --> 00:18:51,600
So to have somebody that's fully
into it as well as writing the

609
00:18:51,600 --> 00:18:52,820
leases, yeah, there's huge value
there.

610
00:18:52,820 --> 00:18:53,980
I think Matt and I have been
reached out.

611
00:18:53,980 --> 00:18:56,680
quite a lot in the last year,
probably from residential

612
00:18:56,680 --> 00:18:58,020
landlords getting annoyed to
wanting to switch over to

613
00:18:58,020 --> 00:18:58,360
commercial.

614
00:18:58,360 --> 00:18:59,560
So can we kind of talk about...

615
00:18:59,560 --> 00:19:00,240
asset classes in the Okanagan.

616
00:19:00,240 --> 00:19:00,580
What are they?

617
00:19:00,580 --> 00:19:01,500
And geographically, where you see
the opportunity?

618
00:19:01,500 --> 00:19:03,300
Obviously, Kelowna Central is a
pretty hard place to make things

619
00:19:03,300 --> 00:19:03,480
pencil.

620
00:19:03,580 --> 00:19:05,420
I mean, I'm just putting words in

621
00:19:05,420 --> 00:19:05,740
your mouth.

622
00:19:05,740 --> 00:19:06,820
I'll let you guys talk.

623
00:19:06,820 --> 00:19:11,640
But yeah, maybe we can just start
with what are the asset classes

624
00:19:11,640 --> 00:19:12,860
for commercial?
And geographically, where do you

625
00:19:12,860 --> 00:19:13,300
like them right now?
now?

626
00:19:13,300 --> 00:19:13,400
Yeah.

627
00:19:13,400 --> 00:19:15,000
I mean, where we've seen a big

628
00:19:15,000 --> 00:19:17,370
trend here is, to answer your
question, is you've got your

629
00:19:17,370 --> 00:19:18,890
retail asset class, industrial,
office, and multifamily.

630
00:19:18,890 --> 00:19:21,090
what we specialize in, because
we're in a valley and there's only

631
00:19:21,090 --> 00:19:24,650
so much land, what we have seen is
the trend outwards to the north

632
00:19:24,650 --> 00:19:27,530
and south of Okanagan, so Vernon
and Penticton, where there was a

633
00:19:27,530 --> 00:19:29,770
massive demand and boom actually
was in the industrial sector.

634
00:19:29,770 --> 00:19:31,210
And that was throughout the COVID
period.

635
00:19:31,210 --> 00:19:33,430
And we saw some prices just
absolutely skyrocketing Kelowna.

636
00:19:33,430 --> 00:19:37,350
And so investors, A, COVID did
change the way the world looked.

637
00:19:37,490 --> 00:19:39,170
A lot of people knew that they
could start to work remotely.

638
00:19:39,170 --> 00:19:41,830
And so the focus then said, well,
where can... we find affordable

639
00:19:41,830 --> 00:19:43,490
land, and that was in Vernon and
Penticton.

640
00:19:43,490 --> 00:19:47,220
It was a 35 -minute drive for
anyone that was in Calgary or

641
00:19:47,360 --> 00:19:47,420
Vancouver.

642
00:19:47,420 --> 00:19:49,620
That was a normal commute.

643
00:19:49,620 --> 00:19:51,320
By the way, you've got a beautiful
drive.

644
00:19:51,320 --> 00:19:52,460
It's a nice commute.

645
00:19:52,460 --> 00:19:54,320
That's where we started to see a

646
00:19:54,320 --> 00:19:55,100
huge shift.

647
00:19:55,100 --> 00:19:57,000
Again, because a lot of the five

648
00:19:57,000 --> 00:20:01,400
families own a lot of the land
mass, they had to get creative.

649
00:20:01,400 --> 00:20:04,820
Lake country, we've seen a massive
boom in the industrial sector out

650
00:20:04,820 --> 00:20:05,100
there.

651
00:20:05,100 --> 00:20:07,100
Vernon and Penticton is awesome.

652
00:20:07,100 --> 00:20:10,460
Because I have certain clients,
I'm personally more focused on the

653
00:20:10,460 --> 00:20:11,400
opportunities of finding a
building that's underutilized

654
00:20:11,400 --> 00:20:14,850
rather than finding a multifamily
site and really going balls to the

655
00:20:14,850 --> 00:20:17,970
wall on a major development that
has so much risk up front.

656
00:20:18,250 --> 00:20:21,150
I tend to be a little bit more,
especially with clients looking

657
00:20:21,150 --> 00:20:25,810
for value -add properties, as I
like existing.

658
00:20:25,810 --> 00:20:30,630
I like markets that have almost a
history of established market

659
00:20:30,630 --> 00:20:30,910
rents.

660
00:20:30,910 --> 00:20:32,870
And I know that sounds a little

661
00:20:32,890 --> 00:20:35,110
odd, but when you can find... a
market that hasn't had huge rental

662
00:20:35,230 --> 00:20:37,050
increases and you understand and
you can look at a building and

663
00:20:37,050 --> 00:20:40,770
say, well, if I do this and I do
this, maybe I can attract a

664
00:20:40,790 --> 00:20:41,370
certain type of tenant.

665
00:20:41,370 --> 00:20:43,210
You build off a tenant mix and you

666
00:20:43,210 --> 00:20:46,070
get a bit of a cool little vibe
and hub going.

667
00:20:46,230 --> 00:20:51,990
Then all of a sudden you're being
developer in a unique way opposed

668
00:20:51,990 --> 00:20:54,590
to we have had so many clients
that say, you know what?

669
00:20:54,590 --> 00:20:56,670
I've been a successful doctor for
my life.

670
00:20:56,670 --> 00:20:57,930
I want to build an apartment
building.

671
00:20:57,930 --> 00:21:02,190
To me, I feel like that is so
risky and there's so many players

672
00:21:02,190 --> 00:21:03,110
in that market.

673
00:21:03,310 --> 00:21:04,910
You guys probably know more than

674
00:21:04,910 --> 00:21:09,650
we do, but you're so governed by
so many external forces.

675
00:21:09,790 --> 00:21:13,770
To me, it's too much risk for me
to say, yeah, with an expert

676
00:21:13,770 --> 00:21:14,770
advice, this is how I do this.

677
00:21:14,770 --> 00:21:16,090
Right now, I've been focusing

678
00:21:16,090 --> 00:21:17,690
heavily on the Vernon upside.

679
00:21:17,790 --> 00:21:19,120
I think Vernon is a beautiful

680
00:21:19,120 --> 00:21:19,620
downtown setting.

681
00:21:19,620 --> 00:21:21,800
Reminds me of what Bernard used to

682
00:21:21,800 --> 00:21:23,800
be 15 years ago, which was
beautiful buildings, some historic

683
00:21:23,800 --> 00:21:26,360
kind of characters, you know, some
cool tenants and some vibe and

684
00:21:26,360 --> 00:21:26,460
stuff.

685
00:21:26,560 --> 00:21:29,000
But it hasn't really evolved to

686
00:21:29,000 --> 00:21:30,300
the next stage.

687
00:21:31,260 --> 00:21:32,380
We're starting to see that

688
00:21:32,380 --> 00:21:32,920
downtown on Bernard.

689
00:21:32,920 --> 00:21:34,740
Let me be really clear that I'm

690
00:21:34,740 --> 00:21:36,500
well aware that there are
challenges with downtown, where

691
00:21:36,500 --> 00:21:37,740
there's challenges with retail.

692
00:21:37,740 --> 00:21:39,060
There's definitely challenges in

693
00:21:39,260 --> 00:21:40,440
the restaurant industry right now.

694
00:21:40,440 --> 00:21:42,200
A lot of my closest friends own

695
00:21:42,200 --> 00:21:46,420
some of the nicest restaurants in
town, and I hear it.

696
00:21:46,420 --> 00:21:50,370
But from a commercial standpoint,
from a commercial opportunity,

697
00:21:50,370 --> 00:21:54,990
some of that land in these
downtown markets will only mature

698
00:21:54,990 --> 00:21:55,590
in price.

699
00:21:55,590 --> 00:21:57,430
And if you have that right

700
00:21:57,430 --> 00:22:01,350
strategy on how to... to find good
tenants, you know, even just, you

701
00:22:01,350 --> 00:22:03,670
know, upgrades to the exterior or
like listening to some of the

702
00:22:03,670 --> 00:22:07,310
challenges that other retailers
have had in that unit before and

703
00:22:07,310 --> 00:22:11,750
say, why don't we upgrade this?
Why don't we bring more power?

704
00:22:11,750 --> 00:22:15,130
Why don't we add a better HVAC
system, which maybe allows for a

705
00:22:15,130 --> 00:22:19,170
cafe to be here instead of, you
know, a bridal store, which it's

706
00:22:19,170 --> 00:22:20,210
been for 15 years, like ways to
evolve.

707
00:22:20,330 --> 00:22:22,750
And I think if you can create a
tenant mix, that's the kind of

708
00:22:22,750 --> 00:22:23,370
stuff I love.

709
00:22:23,370 --> 00:22:24,610
You know, one starts.

710
00:22:24,610 --> 00:22:26,330
Now you get that cool little
trendy bar, then you get that cool

711
00:22:26,330 --> 00:22:29,790
little clothing retailer, and all
of a sudden you've got a hub that

712
00:22:29,790 --> 00:22:32,970
people want to drive from all
around town or wherever to come

713
00:22:32,970 --> 00:22:33,150
see.

714
00:22:33,150 --> 00:22:33,990
That's stuff I love, passionate

715
00:22:33,990 --> 00:22:34,130
about.

716
00:22:34,170 --> 00:22:34,430
That's awesome.

717
00:22:34,430 --> 00:22:37,810
What are you guys seeing in the
office space in Kelowna, Emory?

718
00:22:37,810 --> 00:22:40,000
It's not as bad as everyone
thinks.

719
00:22:40,000 --> 00:22:43,060
I guess we did an article in
CastNet where it wasn't the death

720
00:22:43,060 --> 00:22:44,500
of the office.

721
00:22:44,500 --> 00:22:45,620
It was just evolving and it just

722
00:22:45,620 --> 00:22:46,360
changed.

723
00:22:46,360 --> 00:22:48,100
The absolute truth is, you know, I

724
00:22:48,100 --> 00:22:50,800
have one side of my shoulder that
says everyone wants to work from

725
00:22:50,800 --> 00:22:50,920
home.

726
00:22:50,920 --> 00:22:52,100
Everyone wants to work remote.

727
00:22:52,100 --> 00:22:53,100
Everyone wants extremely flexible
hours.

728
00:22:53,100 --> 00:22:55,980
But then, you know, we're one of
the largest commercial brokerages

729
00:22:55,980 --> 00:22:59,240
in the Okanagan doing a
significant volume of the deals.

730
00:22:59,240 --> 00:23:00,960
And the office market has been
really busy.

731
00:23:00,960 --> 00:23:02,220
There has been.

732
00:23:02,220 --> 00:23:05,020
a lot of new product that's been

733
00:23:05,020 --> 00:23:07,380
put on the market over the last
couple of years.

734
00:23:07,380 --> 00:23:11,780
There's an expectation because of
that land value and because of the

735
00:23:11,780 --> 00:23:14,140
construction costs that there's
got to be, you know, a performant

736
00:23:14,140 --> 00:23:15,440
rent that's targeted and hit.

737
00:23:15,440 --> 00:23:16,400
So there's some certain pressures

738
00:23:16,400 --> 00:23:20,960
on some of the newer stuff, which
is, I think, why we see a little

739
00:23:20,960 --> 00:23:21,700
bit of agency.

740
00:23:21,940 --> 00:23:23,200
You've done some of the largest

741
00:23:23,200 --> 00:23:23,860
transactions on the office side.

742
00:23:23,860 --> 00:23:26,020
There's still quite a demand for

743
00:23:26,020 --> 00:23:30,240
people wanting to be out of home
in a nice professional office

744
00:23:30,240 --> 00:23:30,320
setting.

745
00:23:30,320 --> 00:23:32,940
Yeah, and I think to add to that,

746
00:23:32,940 --> 00:23:35,200
that's a great question because
People have to evolve, right?

747
00:23:35,200 --> 00:23:37,820
And I've seen that in banks, for
instance.

748
00:23:37,820 --> 00:23:41,940
You know, when you look at their
office, traditionally, it would be

749
00:23:41,940 --> 00:23:44,960
and you go into the CEO's office,
it's a big boardroom, you know,

750
00:23:44,960 --> 00:23:46,140
couches on the other side.

751
00:23:46,140 --> 00:23:46,840
They have adapted, they have

752
00:23:46,840 --> 00:23:49,180
changed, and they've gone lean and
mean, which is just fine.

753
00:23:49,180 --> 00:23:52,220
I mean, a lot of the other things,
as Chris alluded to, one of the

754
00:23:52,220 --> 00:23:55,420
larger deals we did was converting
an entire floor with a patio to a

755
00:23:55,420 --> 00:23:55,700
daycare.

756
00:23:55,780 --> 00:23:55,960
facilities.

757
00:23:55,960 --> 00:23:58,880
So, you know, having to evolve,
getting creative on those types of

758
00:23:58,880 --> 00:24:00,100
deals are helping in that office
asset class.

759
00:24:00,100 --> 00:24:00,340
Awesome.

760
00:24:00,340 --> 00:24:02,930
The bay closing at the ball.

761
00:24:02,930 --> 00:24:05,110
Like what is that going to do?
This is a really interesting one,

762
00:24:05,110 --> 00:24:06,810
a really interesting one, to be
quite frank.

763
00:24:06,810 --> 00:24:07,350
Yes, it's a big hit.

764
00:24:07,350 --> 00:24:08,990
However, I think landlords are a

765
00:24:08,990 --> 00:24:11,050
little bit happy about that.

766
00:24:11,050 --> 00:24:12,170
Those leases were secured at very

767
00:24:12,170 --> 00:24:13,290
low net rent.

768
00:24:13,670 --> 00:24:15,090
Some of them were a lot of land,

769
00:24:15,090 --> 00:24:17,070
right?
And now we're seeing the rezoning

770
00:24:17,420 --> 00:24:18,400
applications for higher density.

771
00:24:18,400 --> 00:24:20,380
I think this is an opportunity for

772
00:24:20,380 --> 00:24:24,280
landlords to recapture a big chunk
of their properties and be able to

773
00:24:24,280 --> 00:24:24,800
service and intensify.

774
00:24:24,800 --> 00:24:27,760
or create what we see maybe at

775
00:24:27,760 --> 00:24:30,280
Orchard Park Mall where they start
demising and leasing to other

776
00:24:30,280 --> 00:24:33,660
types of tenants that maybe have a
little bit more of a longevity to

777
00:24:33,660 --> 00:24:34,000
them.

778
00:24:34,160 --> 00:24:37,000
I have a close friend who's a golf

779
00:24:37,000 --> 00:24:37,020
pro.

780
00:24:37,100 --> 00:24:38,100
He has nothing to do with

781
00:24:38,100 --> 00:24:38,780
commercial real estate.

782
00:24:38,780 --> 00:24:40,700
Every time we're playing golf,

783
00:24:40,700 --> 00:24:43,780
he'll say, I want to be in the
parking lot business.

784
00:24:43,780 --> 00:24:46,840
That is what I want to be in.

785
00:24:46,840 --> 00:24:48,440
And I know we're kind of dodging

786
00:24:48,440 --> 00:24:50,320
because there's some sensitivity
to the Hudson Bay stuff.

787
00:24:50,320 --> 00:24:53,360
I've seen a lot of the projects
where there's some Okanagan -based

788
00:24:53,360 --> 00:24:55,380
shopping centers that are listed
for sale right now.

789
00:24:55,660 --> 00:24:59,460
And the clients that we are
working and looking and doing the

790
00:24:59,460 --> 00:25:01,780
performance and the backwards math
see it as a massive opportunity

791
00:25:01,780 --> 00:25:03,520
rather than a liability that one
of the largest kind of retailers

792
00:25:03,520 --> 00:25:04,620
in Canada are going down.

793
00:25:04,620 --> 00:25:05,980
They're looking at it going, wow,

794
00:25:05,980 --> 00:25:08,060
there's a lot of area right there.

795
00:25:08,060 --> 00:25:09,200
And that property allows for

796
00:25:09,200 --> 00:25:09,480
height.

797
00:25:09,480 --> 00:25:12,100
And they get a little excited.

798
00:25:12,100 --> 00:25:15,540
Yeah, I think companies should
look at this and figure out a way

799
00:25:15,540 --> 00:25:17,020
that they're changing their
business model.

800
00:25:17,020 --> 00:25:18,800
I mean, e -commerce is a huge one,
right?

801
00:25:18,800 --> 00:25:21,280
People can typically just click a
button and have something show up

802
00:25:21,280 --> 00:25:21,740
the next day.

803
00:25:21,740 --> 00:25:24,360
And I think this is going to be a

804
00:25:24,360 --> 00:25:27,860
kind of a rude awakening for those
large big box shops to sit there

805
00:25:27,860 --> 00:25:29,400
and figure out how can we get...

806
00:25:29,400 --> 00:25:30,840
this to a point where we can still

807
00:25:30,840 --> 00:25:31,420
make a profit.

808
00:25:31,420 --> 00:25:32,800
See, we can talk about this for

809
00:25:32,800 --> 00:25:33,080
hours.

810
00:25:33,080 --> 00:25:35,020
We just get excited about it.

811
00:25:35,020 --> 00:25:38,930
But that's the interesting thing
about being in our industry.

812
00:25:39,070 --> 00:25:40,050
And I don't want to...

813
00:25:40,310 --> 00:25:41,590
My wife is a residential realtor.

814
00:25:41,590 --> 00:25:46,370
There's so much value in what that
side does in commercial for us.

815
00:25:46,370 --> 00:25:50,500
you have an opportunity to almost
learn a lot about how businesses

816
00:25:50,500 --> 00:25:51,060
operate.

817
00:25:51,060 --> 00:25:51,500
And you have to start to

818
00:25:51,500 --> 00:25:54,800
understand that in your asset
class that you particularly stay

819
00:25:54,800 --> 00:25:57,240
with to say, okay, how have things
evolved?

820
00:25:57,240 --> 00:25:58,720
And trying to be above and beyond
that.

821
00:25:58,720 --> 00:26:02,380
Like if Jay is really
understanding 40 % mezzanine gross

822
00:26:02,380 --> 00:26:07,780
ups, like he has to understand
what that means, you know, on both

823
00:26:07,780 --> 00:26:12,080
sides of his clients that own the
property, but also the tenants,

824
00:26:12,080 --> 00:26:15,220
what the impact might have, what
can you do?

825
00:26:15,220 --> 00:26:19,020
For me, retail, like which I just
love, it's not the only asset

826
00:26:19,020 --> 00:26:19,900
class I do.

827
00:26:19,900 --> 00:26:21,740
I just happen to have a passion

828
00:26:21,740 --> 00:26:22,440
for it.

829
00:26:22,440 --> 00:26:24,080
You start to learn how businesses

830
00:26:24,080 --> 00:26:26,660
evolve and you start seeing, for
the most part, like an example,

831
00:26:26,660 --> 00:26:28,920
you don't see 8 ,000 square foot
restaurants anymore.

832
00:26:28,920 --> 00:26:31,340
COVID changed that, right?
My best friend owns one of the

833
00:26:31,340 --> 00:26:32,420
largest franchises in Canada.

834
00:26:32,420 --> 00:26:34,280
We sat on the beach during COVID

835
00:26:34,280 --> 00:26:36,440
and we talked about ghost kitchens
and we talked about what Skip

836
00:26:36,440 --> 00:26:36,660
meant.

837
00:26:36,660 --> 00:26:37,780
Do we like Skip?

838
00:26:37,780 --> 00:26:40,140
Do we hate Skip?
The way that we had to start to

839
00:26:40,140 --> 00:26:41,890
evolve because historically you
just did.

840
00:26:41,890 --> 00:26:42,730
120 chopped leaf locations.

841
00:26:42,730 --> 00:26:44,070
You just bread and butter.

842
00:26:44,070 --> 00:26:46,930
You know exactly where it was,
what you needed, parking ratio,

843
00:26:46,930 --> 00:26:47,830
tenant mix.

844
00:26:47,830 --> 00:26:49,410
And all of a sudden, we're like,

845
00:26:49,410 --> 00:26:52,330
we've got to change the way we
look at real estate.

846
00:26:52,330 --> 00:26:55,870
We started... I say we, he did,
but I got to be involved.

847
00:26:55,870 --> 00:26:58,210
Started looking at 800 square foot
spaces instead of 1200.

848
00:26:58,210 --> 00:27:00,970
And we learned how to be lean and
mean and build the kitchens a

849
00:27:00,970 --> 00:27:02,030
little more economically and
stuff.

850
00:27:02,030 --> 00:27:07,060
So I love it because you get kind
of not just what are commercial

851
00:27:07,060 --> 00:27:09,060
lease rates, what are retail
rates, what are, you know, land

852
00:27:09,060 --> 00:27:09,740
selling per acre.

853
00:27:09,740 --> 00:27:11,280
You start to evolve the client's

854
00:27:11,280 --> 00:27:12,880
business and you start to
understand that.

855
00:27:12,880 --> 00:27:15,620
And then if you're smart, you can
figure out ways to create value

856
00:27:15,620 --> 00:27:16,980
add on that side.

857
00:27:16,980 --> 00:27:17,660
There's so much to unpack there.

858
00:27:17,660 --> 00:27:18,360
First off, I am floored.

859
00:27:18,360 --> 00:27:20,200
I did not realize the bay was

860
00:27:20,200 --> 00:27:20,400
closed.

861
00:27:20,400 --> 00:27:21,600
That's where I get all my jeans

862
00:27:21,600 --> 00:27:24,830
from, which I've got a hole in my
knee and I need more jeans.

863
00:27:25,050 --> 00:27:25,150
Yeah.

864
00:27:25,270 --> 00:27:25,290
Okay.

865
00:27:25,290 --> 00:27:26,210
Well, I'm headed there after this.

866
00:27:26,270 --> 00:27:27,090
When does it close?

867
00:27:27,090 --> 00:27:27,570
there after this.

868
00:27:27,570 --> 00:27:29,210
One thing I wanted to ask there,

869
00:27:29,210 --> 00:27:32,170
and I've been doing this for years
now at my building, is investing

870
00:27:32,170 --> 00:27:33,430
in the business owners.

871
00:27:33,430 --> 00:27:34,510
If they're successful, you'll be

872
00:27:34,510 --> 00:27:34,770
successful.

873
00:27:34,770 --> 00:27:37,480
If their profits go up, up, no,

874
00:27:37,480 --> 00:27:39,060
they can afford the higher lease
rates.

875
00:27:39,060 --> 00:27:41,060
And you just, you want that
cohesive community.

876
00:27:41,060 --> 00:27:42,340
I'm happy to invest in it.

877
00:27:42,340 --> 00:27:44,000
I guess the hard part for most

878
00:27:44,000 --> 00:27:47,340
people might be, how do you
quantify what the return's going

879
00:27:47,340 --> 00:27:48,460
to be?
Like you said, paint the exterior.

880
00:27:48,460 --> 00:27:50,920
I know my building needs to be
painted.

881
00:27:50,920 --> 00:27:51,900
We did the roof.

882
00:27:51,900 --> 00:27:52,800
We did the boiler system.

883
00:27:52,800 --> 00:27:55,200
Like we're doing a bunch of work
on it.

884
00:27:55,200 --> 00:27:58,340
Those things I can't turn around
and go to tenants and say, Hey,

885
00:27:58,340 --> 00:27:59,940
you know, we, we just replaced the
roof.

886
00:28:00,320 --> 00:28:03,580
we're upping your rate, I guess,
if you're on a triple net lease.

887
00:28:03,580 --> 00:28:04,120
Yeah, exactly.

888
00:28:04,120 --> 00:28:04,880
Yeah, I'm answering my own

889
00:28:04,880 --> 00:28:04,960
question.

890
00:28:04,960 --> 00:28:06,770
Okay, so I inherited a lot of

891
00:28:06,770 --> 00:28:07,270
gross net leases.

892
00:28:07,270 --> 00:28:09,330
So I didn't have that ability

893
00:28:09,470 --> 00:28:09,530
then.

894
00:28:09,530 --> 00:28:11,290
But I guess, do you guys, do you

895
00:28:11,290 --> 00:28:12,530
do comparables like residential
real estate?

896
00:28:12,530 --> 00:28:16,290
Would you go say, hey, you know
what, this building three blocks

897
00:28:16,290 --> 00:28:18,490
away has a beautiful exterior,
updated this and updated that.

898
00:28:18,490 --> 00:28:20,850
And that's why their lease rates
are higher than yours.

899
00:28:20,850 --> 00:28:23,050
This is probably nowhere near as
sophisticated as the residential

900
00:28:23,050 --> 00:28:23,450
side is.

901
00:28:23,450 --> 00:28:25,050
I admire the stats and the data

902
00:28:25,050 --> 00:28:30,790
and how easy it is to get in the
residential side.

903
00:28:30,790 --> 00:28:35,040
In fact, I still don't know all
the tools available on the matrix

904
00:28:35,040 --> 00:28:36,700
system because in residential,
there's so many transactions

905
00:28:36,700 --> 00:28:39,320
happening in two bedrooms, two
bathrooms in this market.

906
00:28:39,320 --> 00:28:41,860
You get to start seeing somewhat
trends and you can build a bit of

907
00:28:41,860 --> 00:28:43,260
a case for a client.

908
00:28:43,260 --> 00:28:44,480
Like let's just hypothetically say

909
00:28:44,480 --> 00:28:46,200
you've got a restaurant, a cafe
and a retailer.

910
00:28:46,200 --> 00:28:48,740
The parking is going to come into
play.

911
00:28:49,080 --> 00:28:50,700
The location, there's so many
other variables and we don't see

912
00:28:50,700 --> 00:28:53,500
so many transactions happen on a
monthly basis that you can say,

913
00:28:53,500 --> 00:28:54,760
look, you're off by 22 cents.

914
00:28:54,760 --> 00:28:55,940
If you're fortunate to have

915
00:28:55,940 --> 00:28:58,520
commercial real estate, and I do
want to touch a bit about the

916
00:28:58,520 --> 00:29:02,260
point of entry of commercial real
estate at one point, but I find

917
00:29:02,260 --> 00:29:04,900
there's landlords that see a
larger picture and they say, okay,

918
00:29:04,900 --> 00:29:06,940
you know what?
I could do this deal right now.

919
00:29:06,940 --> 00:29:11,170
It's going to pay me exactly what
I want, but is this going to be

920
00:29:11,170 --> 00:29:15,770
the benefit to the community, to
the existing tenant mix?

921
00:29:15,770 --> 00:29:18,070
If it's a mixed use building, how
does this actually compliment the

922
00:29:18,070 --> 00:29:20,630
immediate area versus, okay, I've
got this really cool, you know,

923
00:29:20,730 --> 00:29:22,050
use, but maybe they're a startup,
but I can see they're going to

924
00:29:22,050 --> 00:29:29,590
work their butt off, but they want
me to invest in a little bit of

925
00:29:29,590 --> 00:29:33,630
paint outside, or they want to
have channel led signage, or they

926
00:29:33,770 --> 00:29:37,030
want something that's going to
require a little bit more of an

927
00:29:36,970 --> 00:29:39,030
investment that I've historically
ever had to do with other tenants.

928
00:29:39,030 --> 00:29:39,470
That's an evolution.

929
00:29:39,470 --> 00:29:40,870
And I think.

930
00:29:40,870 --> 00:29:43,670
The thing that frustrates me the
most with my industry, with some

931
00:29:43,670 --> 00:29:46,770
of my colleagues, with some of the
landlords that I've worked closely

932
00:29:46,770 --> 00:29:48,790
that don't want to deal with
commercial agents, or they just

933
00:29:48,790 --> 00:29:51,510
have their own system, is when
they do lazy deals.

934
00:29:51,730 --> 00:29:53,690
That's what really bothers me, is
there's an opportunity to evolve

935
00:29:53,690 --> 00:29:56,850
and to bring something to a market
that could be a really good thing

936
00:29:56,850 --> 00:29:58,490
for not just the nickels and dimes
of the rents.

937
00:29:58,490 --> 00:30:01,540
could be a building block off of
the rest so in your instance like

938
00:30:01,620 --> 00:30:04,100
there's nothing wrong with the
fact that you've inherited those

939
00:30:04,460 --> 00:30:13,660
things and this is kind of the way
we've done it but if you take a

940
00:30:13,660 --> 00:30:17,320
flyer on maybe that you know and
i'm just using way examples but

941
00:30:17,320 --> 00:30:20,620
that gluten -free bakery couple
that's really working hard at the

942
00:30:20,740 --> 00:30:22,540
farmer's market but they're going
to bring something that's been

943
00:30:22,540 --> 00:30:25,340
unique and shake it up like That's
pretty cool.

944
00:30:25,780 --> 00:30:29,100
And all of a sudden you get that
next use that goes, you know, I'm

945
00:30:29,100 --> 00:30:32,810
a cool hair salon that really
would love to be beside this youth

946
00:30:32,810 --> 00:30:33,270
and energy.

947
00:30:33,270 --> 00:30:35,170
That's the opportunity.

948
00:30:35,170 --> 00:30:36,310
Like that's where you start.

949
00:30:36,310 --> 00:30:38,450
I don't ever advise clients to

950
00:30:38,450 --> 00:30:40,550
just go buy something, put
lipstick on it and just say, hey,

951
00:30:40,550 --> 00:30:41,810
hopefully they come.

952
00:30:41,810 --> 00:30:44,570
Like there's got to be a strategy

953
00:30:44,570 --> 00:30:47,570
of how you get there instead of
just spending clients cash because

954
00:30:47,570 --> 00:30:51,230
that never really works well for
agents as well when you just start

955
00:30:51,230 --> 00:30:51,470
saying, well.

956
00:30:51,470 --> 00:30:52,450
build it and they will come.

957
00:30:52,770 --> 00:30:54,670
There's got to be some
thoughtfulness to it.

958
00:30:54,670 --> 00:30:54,790
Yeah.

959
00:30:54,790 --> 00:30:56,270
Another point, you know, you

960
00:30:56,270 --> 00:30:58,090
touched on there is entry level.

961
00:30:58,090 --> 00:30:59,710
So yeah, I get people reaching out

962
00:30:59,710 --> 00:31:02,730
to like, Hey, what am I approved
for, for a commercial mortgage?

963
00:31:02,730 --> 00:31:04,350
It's like, well, it's based on the
debt coverage ratio.

964
00:31:04,430 --> 00:31:04,650
Right.

965
00:31:04,650 --> 00:31:07,730
So do you guys want to talk a

966
00:31:07,730 --> 00:31:09,650
little bit about that?
How do you, I guess, not pre

967
00:31:09,650 --> 00:31:11,150
-approved, but like vet a
potential new client that's coming

968
00:31:11,150 --> 00:31:12,630
in that wants to buy commercial
space?

969
00:31:12,630 --> 00:31:14,650
Like how does that conversation?
Yeah.

970
00:31:14,650 --> 00:31:14,890
Yeah.

971
00:31:14,890 --> 00:31:15,790
First and foremost, patience.

972
00:31:15,790 --> 00:31:18,570
Like us, along with other great
colleagues that we work with other

973
00:31:18,570 --> 00:31:20,510
brokerages that kind of do a lot
of commercial real estate.

974
00:31:20,510 --> 00:31:22,630
There's no such thing as a quick,
fast, easy, brainless transaction.

975
00:31:22,630 --> 00:31:25,030
I think that you have to
understand the client a little bit

976
00:31:25,030 --> 00:31:26,070
about what their risk tolerance
is.

977
00:31:26,070 --> 00:31:30,210
capitalization rates and some
other things, there is risk in any

978
00:31:30,210 --> 00:31:33,410
type of commercial real estate or
any type of real estate in

979
00:31:33,410 --> 00:31:33,490
general.

980
00:31:33,490 --> 00:31:34,350
I think patience and I think that

981
00:31:34,350 --> 00:31:35,970
your point of entry is difficult
in the Okanagan.

982
00:31:35,970 --> 00:31:37,790
Quite frankly, it's not cheap to
get into commercial real estate.

983
00:31:37,790 --> 00:31:39,650
You don't commonly find a $200
,000 little tiny office strata

984
00:31:39,650 --> 00:31:39,710
unit.

985
00:31:39,710 --> 00:31:40,370
That's very, very rare.

986
00:31:40,370 --> 00:31:41,390
You're talking probably multiple
millions of dollars.

987
00:31:41,390 --> 00:31:42,690
If you're talking about
acquisition of land and

988
00:31:42,690 --> 00:31:45,430
developing, there's, as I've
mentioned, better have some

989
00:31:45,430 --> 00:31:48,080
experience with that or at least
have the end.

990
00:31:48,080 --> 00:31:51,220
user or your home business that
you're evolving, like you've got

991
00:31:51,220 --> 00:31:52,820
to have some of the cards ready
for that.

992
00:31:52,820 --> 00:31:55,940
What I find really interesting in
the Okanagan is there's a lot of

993
00:31:55,940 --> 00:31:56,860
historical money.

994
00:31:57,160 --> 00:31:58,360
There's clients and developers

995
00:31:58,360 --> 00:32:01,980
that have owned stuff forever and
they have no succession plan.

996
00:32:01,980 --> 00:32:07,420
So for me, I was trying to kind of
think like, what would be ways

997
00:32:07,420 --> 00:32:10,120
that I would encourage people to
get into commercial real estate

998
00:32:10,120 --> 00:32:12,850
that have no experience whatsoever
in it?

999
00:32:12,850 --> 00:32:14,670
And unless your family's giving
you a building.

1000
00:32:14,670 --> 00:32:15,290
Which, congratulations, that's
awesome.

1001
00:32:15,290 --> 00:32:17,290
But it doesn't happen a whole lot.

1002
00:32:17,290 --> 00:32:18,570
I think there's a lot of clients

1003
00:32:18,570 --> 00:32:19,890
out there that are starving for a
mentor or for a mentee.

1004
00:32:19,890 --> 00:32:21,610
Like something to say, hey, like,
I built this.

1005
00:32:21,610 --> 00:32:24,230
I worked my butt off since the
60s, 70s, 80s.

1006
00:32:24,230 --> 00:32:26,590
I went through crazy times.

1007
00:32:26,590 --> 00:32:28,070
I went through COVID all by

1008
00:32:28,070 --> 00:32:28,650
myself.

1009
00:32:28,650 --> 00:32:29,670
And now I have no legacy.

1010
00:32:29,670 --> 00:32:32,850
And I think you'd be surprised on
how many developers are out there

1011
00:32:32,850 --> 00:32:34,570
that if somebody wanted to get
into the industry and learn and

1012
00:32:34,570 --> 00:32:36,190
really work, there would be kind
of a unique approach into that.

1013
00:32:36,190 --> 00:32:39,150
So I know that's a little
holistic, but I've got several

1014
00:32:39,150 --> 00:32:39,390
clients.

1015
00:32:39,390 --> 00:32:41,290
that don't have any succession

1016
00:32:41,290 --> 00:32:44,610
plans and they just loved
commercial real estate and they

1017
00:32:44,610 --> 00:32:46,270
just loved developing and they
loved owning those buildings.

1018
00:32:46,270 --> 00:32:48,410
I'm surprised that they don't have
somebody that's just ready to take

1019
00:32:48,410 --> 00:32:48,830
them over.

1020
00:32:48,830 --> 00:32:50,510
So I've asked a lot of questions

1021
00:32:50,510 --> 00:32:51,350
out there.

1022
00:32:51,350 --> 00:32:52,910
If I was just somebody wanting to

1023
00:32:52,910 --> 00:32:54,730
get a commercial real estate,
maybe an uncle or neighbor or...

1024
00:32:54,730 --> 00:32:55,190
Something like that.

1025
00:32:55,390 --> 00:32:57,050
And I think maybe if I could add

1026
00:32:57,250 --> 00:32:58,830
to that, Taylor, because it's a
great question again.

1027
00:32:58,830 --> 00:33:02,670
And the first thing I'm going to
ask that client is, are you an

1028
00:33:03,050 --> 00:33:04,090
owner occupier or are you an
investor?

1029
00:33:04,170 --> 00:33:06,270
That is going to let me understand
their risk profile.

1030
00:33:06,270 --> 00:33:08,150
And then I'm going to say, for
instance, as an investor, we're

1031
00:33:08,150 --> 00:33:09,610
going to do a deep dive into the
leases.

1032
00:33:09,610 --> 00:33:11,550
We're going to say, what income
are you buying?

1033
00:33:11,550 --> 00:33:13,930
Where's the upside?
Where can we create value?

1034
00:33:13,930 --> 00:33:16,490
What are the limitations of that
lease that you need to be aware of

1035
00:33:16,490 --> 00:33:18,510
moving forward before you sign on
the dotted line?

1036
00:33:18,670 --> 00:33:20,710
Because for instance, there might
be a fantastic tenant in place.

1037
00:33:20,710 --> 00:33:23,010
They might have 15 lease renewals
that have already identified those

1038
00:33:23,010 --> 00:33:24,140
lease rates.

1039
00:33:24,140 --> 00:33:26,540
Well, then you need to put that in

1040
00:33:26,700 --> 00:33:29,040
your reforma and understand that
this is the max income you're

1041
00:33:29,040 --> 00:33:33,340
going to get versus somewhere
where it's, hey, we got a couple

1042
00:33:33,340 --> 00:33:35,420
of year leases in here, but
they're incredibly under market.

1043
00:33:35,420 --> 00:33:36,460
They have no renewal periods.

1044
00:33:36,460 --> 00:33:37,420
And here's the opportunity for us.

1045
00:33:37,420 --> 00:33:41,020
Oh, by the way, realize that I
would advise that this maybe you

1046
00:33:41,020 --> 00:33:44,000
do want to do a little bit of a
building upgrade here.

1047
00:33:44,000 --> 00:33:47,280
I might have someone in my back
pocket would be a perfect tenant

1048
00:33:47,280 --> 00:33:52,260
looking for that space, but we
need to do X, Y. to get you there.

1049
00:33:52,260 --> 00:33:56,900
But that's the value add that we
provide to, I'd say, an investor

1050
00:33:56,900 --> 00:33:57,420
buyer.

1051
00:33:57,700 --> 00:33:59,700
If it's somebody who's an owner

1052
00:33:59,700 --> 00:34:01,040
occupier, that's pretty simple.

1053
00:34:01,040 --> 00:34:02,440
But what I would say is if you

1054
00:34:02,440 --> 00:34:06,000
want to become an owner occupier,
you may want to look at building a

1055
00:34:06,000 --> 00:34:08,280
larger facility that we could then
tenant and you can become a

1056
00:34:08,280 --> 00:34:08,880
landlord as well.

1057
00:34:08,880 --> 00:34:11,739
Use portion as in your investment.

1058
00:34:11,940 --> 00:34:15,460
So if you're going to be building
something, you might as well build

1059
00:34:15,460 --> 00:34:17,800
it to its max potential than just
what you need.

1060
00:34:17,800 --> 00:34:19,520
And who knows, you either lease
that space out or your business

1061
00:34:19,520 --> 00:34:20,480
then grows into it.

1062
00:34:20,480 --> 00:34:21,920
Jay's answer is better than mine.

1063
00:34:21,920 --> 00:34:23,260
I like both of them.

1064
00:34:23,260 --> 00:34:25,260
To your point, Chris, I can act as

1065
00:34:25,260 --> 00:34:26,719
a nephew.

1066
00:34:26,719 --> 00:34:28,880
Like if you have some uncles that

1067
00:34:28,880 --> 00:34:31,219
are looking to pass down the torch
and for you, Jay, I think

1068
00:34:31,219 --> 00:34:34,260
something that like a light bulb
went off there for me is.

1069
00:34:34,260 --> 00:34:36,340
Do you guys ever, I'm assuming
this doesn't happen frequently,

1070
00:34:36,340 --> 00:34:38,340
but is there ever an opportunity
during the purchase where you

1071
00:34:38,340 --> 00:34:41,380
would do like a lease buyout or if
there's an existing tenant, that's

1072
00:34:41,380 --> 00:34:44,460
part of the condition of like,
hey, you know, you have to find a

1073
00:34:44,460 --> 00:34:47,380
way to terminate this because that
lease is so undervalued.

1074
00:34:47,380 --> 00:34:49,380
Like we can't even be approved,
you know, for financing because

1075
00:34:49,520 --> 00:34:50,460
the lease rate is so low.

1076
00:34:50,460 --> 00:34:50,860
Absolutely.

1077
00:34:50,860 --> 00:34:51,760
Yeah, absolutely.

1078
00:34:51,760 --> 00:34:52,560
And those are difficult

1079
00:34:52,560 --> 00:34:53,040
conversations to have.

1080
00:34:53,040 --> 00:34:55,520
And there's sometimes you can see

1081
00:34:55,530 --> 00:34:58,430
the writing on the wall for a
business who might just be looking

1082
00:34:58,430 --> 00:34:59,270
for a way out too.

1083
00:34:59,270 --> 00:35:01,790
So yeah, we get really creative.

1084
00:35:01,790 --> 00:35:04,310
You know, one thing we haven't
really chatted about commercial

1085
00:35:04,310 --> 00:35:05,890
real estate is we wear many hats.

1086
00:35:05,890 --> 00:35:06,930
You know, anyone that's looking to

1087
00:35:06,930 --> 00:35:07,830
get into this business, it's
really challenging.

1088
00:35:07,830 --> 00:35:09,570
It's not as simple as finishing
your solder school business degree

1089
00:35:09,570 --> 00:35:10,930
and then walking in.

1090
00:35:11,100 --> 00:35:12,440
We need to understand the art of

1091
00:35:12,440 --> 00:35:12,640
the deal.

1092
00:35:12,640 --> 00:35:13,720
We need to understand what hat am

1093
00:35:13,720 --> 00:35:15,940
I wearing that day?
So am I wearing a tenant rep or

1094
00:35:15,940 --> 00:35:17,960
lease?
Am I a landlord rep for a lease?

1095
00:35:17,960 --> 00:35:21,180
If I'm buying for a purchaser or
selling for, you know, somebody,

1096
00:35:21,180 --> 00:35:23,660
every one of those deals are a
deal.

1097
00:35:23,660 --> 00:35:25,900
different type of direction and
strategy as to how we approach

1098
00:35:25,900 --> 00:35:25,960
them.

1099
00:35:25,960 --> 00:35:27,040
So, you know, when you get into

1100
00:35:27,040 --> 00:35:28,200
this business, there's a lot to
learn.

1101
00:35:28,200 --> 00:35:30,380
We're always constantly learning,
but this is where we get excited.

1102
00:35:30,380 --> 00:35:33,300
And I think we've been fortunate
to develop some pretty great

1103
00:35:33,300 --> 00:35:35,620
relationships with owners that I
would say, Chris is a really good

1104
00:35:35,620 --> 00:35:39,140
example of two or three of his
clients that people would line up

1105
00:35:39,140 --> 00:35:41,080
for days to get to meet.

1106
00:35:41,080 --> 00:35:44,740
But, you know, Chris has them on

1107
00:35:44,740 --> 00:35:47,540
their cell phone because he's done
a great job of looking through

1108
00:35:47,540 --> 00:35:49,840
those, doing a deep dive and
understanding, hey, how can I

1109
00:35:49,840 --> 00:35:51,720
create value?
new portfolio, which then puts us

1110
00:35:51,720 --> 00:35:52,620
in their inner circle.

1111
00:35:52,620 --> 00:35:53,700
So it's really neat and something

1112
00:35:53,700 --> 00:35:55,840
that the reason why I love
commercial real estate.

1113
00:35:55,840 --> 00:35:56,020
Yeah.

1114
00:35:56,020 --> 00:35:58,580
And I think one thing that you

1115
00:35:58,580 --> 00:36:01,000
raise is ways to get a lease's
potential, right?

1116
00:36:01,000 --> 00:36:02,480
A lease can be four pages.

1117
00:36:02,480 --> 00:36:03,500
It can be 60, 70, 80 pages.

1118
00:36:03,500 --> 00:36:05,700
Like there's just a wholly
different types out there.

1119
00:36:05,700 --> 00:36:07,880
What I do love about it is that
leases are pretty enforceable

1120
00:36:07,880 --> 00:36:08,080
though.

1121
00:36:08,080 --> 00:36:09,240
Like they're not easy to get out

1122
00:36:09,240 --> 00:36:09,460
of.

1123
00:36:09,560 --> 00:36:11,570
There's ones that are a little bit

1124
00:36:11,570 --> 00:36:13,230
easier than others, but there's
always unique clauses.

1125
00:36:13,370 --> 00:36:15,610
You know, when we talk about
bringing on new licensees, we're

1126
00:36:15,610 --> 00:36:19,290
like, you're not going and you're
not like swinging for the fences

1127
00:36:19,290 --> 00:36:22,030
for the home runs with the big,
you know, 30, $40 million land

1128
00:36:22,030 --> 00:36:22,190
transactions.

1129
00:36:22,190 --> 00:36:24,070
Yeah, You do need to understand

1130
00:36:24,070 --> 00:36:24,370
commercial leases.

1131
00:36:24,370 --> 00:36:25,850
Even if that's below you and you

1132
00:36:25,850 --> 00:36:29,590
don't want to, like we wouldn't
bring them on in our brokerage if

1133
00:36:29,590 --> 00:36:31,430
that was below them, to be quite
honest with you.

1134
00:36:31,430 --> 00:36:33,050
You have to understand what you're
selling.

1135
00:36:33,050 --> 00:36:36,430
And what's happened really cool is
when I was, you know, kind of a

1136
00:36:36,430 --> 00:36:39,830
baby in this industry, I did tiny
little leases, but you kind of

1137
00:36:39,830 --> 00:36:42,530
learn this huge repertoire of
like.

1138
00:36:42,530 --> 00:36:43,570
oh, that's an interesting clause.

1139
00:36:43,670 --> 00:36:44,930
That's an interesting clause.

1140
00:36:44,930 --> 00:36:46,930
I wonder how I can use that for
landlords or for tenants.

1141
00:36:46,930 --> 00:36:49,590
We've come across portfolios for
sale where we question if the

1142
00:36:49,810 --> 00:36:52,050
leases were red because if they
were red, you realize that what

1143
00:36:52,050 --> 00:36:55,060
they've been valued at, you can't
make those numbers make sense.

1144
00:36:55,060 --> 00:36:58,760
I saw one portfolio sale where it
was promoting the fact that you

1145
00:36:58,760 --> 00:36:59,900
could build on vacant land.

1146
00:36:59,900 --> 00:37:01,600
National Anchor had a no build on

1147
00:37:01,600 --> 00:37:03,120
all of its parking.

1148
00:37:03,120 --> 00:37:04,260
And, you know, you have to

1149
00:37:04,340 --> 00:37:04,980
understand that kind of stuff.

1150
00:37:04,980 --> 00:37:06,500
And I think that a really great

1151
00:37:06,500 --> 00:37:08,240
landlord understands the
intricacies of tiny little leases,

1152
00:37:08,240 --> 00:37:11,380
because that's kind of, you know,
the building blocks of most of

1153
00:37:11,380 --> 00:37:11,820
commercial real estate.

1154
00:37:11,820 --> 00:37:13,980
There are other asset classes,

1155
00:37:13,980 --> 00:37:17,160
don't get me wrong, like, you
know, multifamily, if you're just

1156
00:37:17,160 --> 00:37:18,080
selling land and all of those
things.

1157
00:37:18,080 --> 00:37:21,400
But where we nerd out is kind of
the small little details.

1158
00:37:21,400 --> 00:37:24,540
Is there any class, I mean, we
kind of spoke about opportunities.

1159
00:37:24,680 --> 00:37:27,080
Is there any class that you feel
is saturated right now?

1160
00:37:27,080 --> 00:37:27,580
I'll go first.

1161
00:37:27,580 --> 00:37:28,720
I think multifamily.

1162
00:37:28,720 --> 00:37:30,000
Probably why we haven't brought it
up.

1163
00:37:30,000 --> 00:37:30,220
Yeah.

1164
00:37:30,220 --> 00:37:30,460
Okay.

1165
00:37:30,460 --> 00:37:30,780
Yeah.

1166
00:37:30,780 --> 00:37:31,040
Yeah.

1167
00:37:31,040 --> 00:37:34,940
I mean, specific to the Okanagan
right now, I feel there's a lot of

1168
00:37:34,940 --> 00:37:35,560
units coming on.

1169
00:37:35,560 --> 00:37:35,780
online.

1170
00:37:35,940 --> 00:37:39,680
I mean, we just had a podcast with
Jeff Hancock and we kind of

1171
00:37:39,680 --> 00:37:41,820
disclosed that, but any other like
commercial asset class that you're

1172
00:37:41,820 --> 00:37:45,020
like, this has had like a pretty
good runway for the last couple of

1173
00:37:45,020 --> 00:37:48,220
years, but I feel, you know, at
least per square foot.

1174
00:37:48,380 --> 00:37:51,320
Let Jay speak to what he's
naturally going to say.

1175
00:37:51,320 --> 00:37:53,820
Let Jay speak to what he's
naturally going to say.

1176
00:37:53,820 --> 00:37:56,460
I would say I've met a lot of
really smart developers, people

1177
00:37:56,460 --> 00:37:58,320
that have dealt with huge
portfolios and other markets come

1178
00:37:58,320 --> 00:38:01,020
to Kelowna saying, I'm going to
apply my secret sauce.

1179
00:38:01,020 --> 00:38:04,200
to the okanagan and i think they
quickly realized you know those

1180
00:38:04,200 --> 00:38:07,660
five or six families that we were
talking about have a very good

1181
00:38:07,660 --> 00:38:10,680
staple and kind of a grapple on
what happens in this market like

1182
00:38:10,680 --> 00:38:13,560
to answer your specific question i
wouldn't be building an office

1183
00:38:13,560 --> 00:38:15,760
building if i had you know 50
million dollars understanding this

1184
00:38:15,760 --> 00:38:18,460
market i would know that there's
some pretty big developers that

1185
00:38:18,460 --> 00:38:22,430
are in that game And I don't think
that I'd want to go head to head

1186
00:38:22,430 --> 00:38:24,450
with them because I think that
historically they've owned that

1187
00:38:24,450 --> 00:38:25,890
land since the 50s and 60s.

1188
00:38:25,890 --> 00:38:26,470
They've built construction

1189
00:38:26,470 --> 00:38:28,150
companies that can facilitate
those builds and the tenant

1190
00:38:28,150 --> 00:38:28,670
improvements on everything
involved.

1191
00:38:28,670 --> 00:38:30,690
I think I'd stay away from office
100%.

1192
00:38:30,890 --> 00:38:33,510
I think Jay's probably got more of
a natural, easier answer.

1193
00:38:33,510 --> 00:38:35,570
Ask the class to stay away from
right now.

1194
00:38:35,570 --> 00:38:37,510
Yeah, I mean, I love industrial.

1195
00:38:37,510 --> 00:38:37,990
That's my world.

1196
00:38:37,990 --> 00:38:41,150
And I would say that the market is
going to be completely

1197
00:38:41,150 --> 00:38:41,330
oversaturated.

1198
00:38:41,330 --> 00:38:42,670
Small Bay Industrial coming in the

1199
00:38:42,670 --> 00:38:43,410
next two to three years.

1200
00:38:43,410 --> 00:38:45,390
About five years ago, there was a

1201
00:38:45,390 --> 00:38:48,580
massive demand and there was a lot
of success on airport business

1202
00:38:48,580 --> 00:38:50,080
park being converted from gravel.

1203
00:38:50,080 --> 00:38:51,660
Lots of divided to one acre

1204
00:38:51,660 --> 00:38:52,960
parcels that had built Small Bay
Industrial on it.

1205
00:38:52,960 --> 00:38:54,540
And I know of at least three
other.

1206
00:38:54,540 --> 00:38:58,660
projects have now put that on hold
it's really slowed down in terms

1207
00:38:58,660 --> 00:39:01,600
of the demand for small bay one
thing i will add to that too when

1208
00:39:01,600 --> 00:39:03,760
we talk about value add is about
seven years ago developer came out

1209
00:39:03,760 --> 00:39:05,480
of vancouver and they started
creating these small bay

1210
00:39:05,480 --> 00:39:07,980
industrials with 40 mezzanine
which they charged on this was

1211
00:39:07,980 --> 00:39:10,240
fantastic it really kind of caught
wind of all the other developers

1212
00:39:10,240 --> 00:39:12,400
and now that is essentially how
you build these they're cookie

1213
00:39:12,400 --> 00:39:16,260
cuttered to be the exact same
product and what we're seeing from

1214
00:39:16,260 --> 00:39:18,760
the feedback from market is we
don't want mezzanines we want We

1215
00:39:18,760 --> 00:39:22,960
want four walls where we can
operate high racking, you know,

1216
00:39:22,960 --> 00:39:24,980
warehouse logistical services
versus having a mezzanine, which

1217
00:39:24,980 --> 00:39:26,980
most of the time just compiles
tires and poker room.

1218
00:39:26,980 --> 00:39:28,100
So many poker rooms.

1219
00:39:28,280 --> 00:39:29,080
I love that.

1220
00:39:29,080 --> 00:39:29,240
Yeah.

1221
00:39:29,240 --> 00:39:30,520
Thank you for the authenticity.

1222
00:39:30,520 --> 00:39:33,720
There's probably a lot of empty
spaces that are costing money and

1223
00:39:33,720 --> 00:39:37,800
people are losing money and them
playing poker.

1224
00:39:37,800 --> 00:39:41,400
But yeah, before we kind of just
wrap this up, is there anything

1225
00:39:41,480 --> 00:39:43,220
you wanted to touch on?
we haven't led the conversation

1226
00:39:43,220 --> 00:39:43,980
to?
I'm really excited for, really

1227
00:39:43,980 --> 00:39:48,380
excited for, as Jay alluded to,
the North and South Okanagan.

1228
00:39:48,380 --> 00:39:51,240
I think that major developers have
been focusing really hard on

1229
00:39:51,240 --> 00:39:51,360
Kelowna.

1230
00:39:51,360 --> 00:39:53,800
And I think that as far as an

1231
00:39:54,040 --> 00:39:55,900
opportunity for somebody that's
getting new into commercial real

1232
00:39:56,080 --> 00:39:58,700
estate as an investment, I think
there's got to be a little bit

1233
00:39:58,700 --> 00:40:01,600
more risk tolerance, but a little
bit more of an opportunity to look

1234
00:40:01,600 --> 00:40:03,740
into, say, West Kelowna, which is
already probably missed.

1235
00:40:03,740 --> 00:40:06,120
Penticton, which is kind of now
saturated as far as lots of

1236
00:40:06,120 --> 00:40:06,400
interest.

1237
00:40:06,400 --> 00:40:07,280
I think Penticton, it's already

1238
00:40:07,280 --> 00:40:07,420
evolving.

1239
00:40:07,420 --> 00:40:09,500
But I think that, you know, you're

1240
00:40:09,500 --> 00:40:12,200
starting to see a lot more
multifamily down there.

1241
00:40:12,200 --> 00:40:13,900
Residential typically comes is
when the commercial seems to

1242
00:40:13,900 --> 00:40:14,000
benefit.

1243
00:40:14,000 --> 00:40:15,900
As I mentioned, I love Vernon, to

1244
00:40:15,900 --> 00:40:16,460
be quite honest with you.

1245
00:40:16,460 --> 00:40:17,980
I don't know why I'm, you know,

1246
00:40:17,980 --> 00:40:19,020
walk through your listing.

1247
00:40:19,020 --> 00:40:20,080
I love that building.

1248
00:40:20,080 --> 00:40:22,180
I think there's so much cool
upside and potential.

1249
00:40:22,180 --> 00:40:23,760
I would say that I'm really
excited about the Okanagan in

1250
00:40:23,760 --> 00:40:23,960
general.

1251
00:40:24,100 --> 00:40:25,060
There's some pretty cool things I

1252
00:40:25,060 --> 00:40:26,260
still think that could be done.

1253
00:40:26,260 --> 00:40:27,840
We're really fortunate to be here.

1254
00:40:27,840 --> 00:40:27,920
And I mean, the Okanagan is a
little bit of a bubble.

1255
00:40:27,920 --> 00:40:31,580
And we're really fortunate to be
here and to be a part of this

1256
00:40:31,580 --> 00:40:33,200
community because it's somewhere
everyone wants to be.

1257
00:40:33,200 --> 00:40:34,880
And I think the sky's the limit
for us.

1258
00:40:34,880 --> 00:40:37,500
Yeah, I mean, you guys kind of,
it's cool.

1259
00:40:37,500 --> 00:40:40,420
You get to kind of shape the
culture a little bit, right?

1260
00:40:40,420 --> 00:40:43,020
Of like the type of tenant class
and like who's, yeah.

1261
00:40:43,020 --> 00:40:46,360
Can you tell my wife that?
I'll drive by and say, hey, look

1262
00:40:46,360 --> 00:40:47,640
at that.

1263
00:40:47,640 --> 00:40:49,060
And she goes, I don't care.

1264
00:40:49,060 --> 00:40:50,440
Every day's new, which is really
cool.

1265
00:40:50,440 --> 00:40:55,520
You get someone that calls and
says, I've got this really cool

1266
00:40:55,520 --> 00:40:57,020
concept and I'm hoping you can
help me.

1267
00:40:57,020 --> 00:41:00,950
And then all of a sudden that kind
of takes foot in plants and stuff.

1268
00:41:00,950 --> 00:41:03,630
So I do love the fact that we can
drive down and my daughters will

1269
00:41:03,630 --> 00:41:04,870
say, hey, you did that deal.

1270
00:41:04,870 --> 00:41:06,990
Or, hey, I know you've been trying

1271
00:41:06,990 --> 00:41:09,130
to get them to come to Kelowna.

1272
00:41:09,130 --> 00:41:11,630
By the way, Olive Garden is not

1273
00:41:11,630 --> 00:41:12,610
coming to Kelowna.

1274
00:41:12,610 --> 00:41:14,130
We've tried a trillion times.

1275
00:41:14,130 --> 00:41:14,570
I love that song.

1276
00:41:14,570 --> 00:41:14,990
Ikea.

1277
00:41:15,390 --> 00:41:17,130
I mean, everyone tries to get an
Olive Garden.

1278
00:41:17,130 --> 00:41:18,850
We've tried a trillion times to
talk off time.

1279
00:41:18,850 --> 00:41:20,790
Yeah, and the brand of the
Felberta too.

1280
00:41:20,790 --> 00:41:20,990
Yeah.

1281
00:41:20,990 --> 00:41:21,870
You don't have the land.

1282
00:41:21,870 --> 00:41:22,390
That's the problem.

1283
00:41:22,390 --> 00:41:25,130
You start to look at the ALC and

1284
00:41:25,130 --> 00:41:25,410
agricultural land.

1285
00:41:25,410 --> 00:41:26,810
And again, there's only small

1286
00:41:26,810 --> 00:41:27,030
land.

1287
00:41:27,070 --> 00:41:28,910
A couple of goats out in the

1288
00:41:28,910 --> 00:41:29,010
field.

1289
00:41:29,010 --> 00:41:29,090
Yeah.

1290
00:41:29,090 --> 00:41:30,150
out in the field.

1291
00:41:30,150 --> 00:41:30,570
Yeah.

1292
00:41:30,570 --> 00:41:32,790
They caught on to that, actually.

1293
00:41:33,350 --> 00:41:33,750
Yeah.

1294
00:41:33,750 --> 00:41:35,410
You can't sell a llama wool.

1295
00:41:35,410 --> 00:41:37,590
Jane and I are a sucker for

1296
00:41:37,590 --> 00:41:39,010
traveling every Topgolf weekend.

1297
00:41:39,010 --> 00:41:39,590
I know.

1298
00:41:39,590 --> 00:41:40,110
that, Topgolf weekend.

1299
00:41:40,110 --> 00:41:40,790
I know.

1300
00:41:40,790 --> 00:41:42,790
I guess also weather is a bit
tougher here.

1301
00:41:42,790 --> 00:41:45,510
Yeah, just picking up the golf
balls and six inches of snow would

1302
00:41:45,510 --> 00:41:46,010
be a little...

1303
00:41:46,010 --> 00:41:47,390
Trust us, Trust us, we have worked

1304
00:41:47,390 --> 00:41:51,430
with quite a few people looking to
bring those brands here.

1305
00:41:51,430 --> 00:41:53,350
It's a bit of a challenge.

1306
00:41:53,350 --> 00:41:55,170
Yeah, yeah, I could imagine.

1307
00:41:55,170 --> 00:41:56,630
Well, it's been awesome.

1308
00:41:56,630 --> 00:41:57,010
Appreciate it.

1309
00:41:57,010 --> 00:41:58,310
Talking to you guys.

1310
00:41:58,310 --> 00:41:59,470
Yeah, honestly, thank you guys so

1311
00:41:59,470 --> 00:42:00,350
much for coming by.

1312
00:42:00,350 --> 00:42:02,170
It was a blast chatting to you.

1313
00:42:02,170 --> 00:42:05,550
If anyone does want to reach out
to you to talk leases, selling,

1314
00:42:05,550 --> 00:42:07,690
buying, how do they reach out?
What's the best way?

1315
00:42:07,690 --> 00:42:10,760
You can view us on our website,
can view us on our website,

1316
00:42:10,760 --> 00:42:11,860
adventurecommercial .ca.

1317
00:42:11,860 --> 00:42:14,700
Probably easiest way to connect us

1318
00:42:14,700 --> 00:42:17,820
through there or call any one of
our signs.

1319
00:42:17,820 --> 00:42:18,060
Yeah.

1320
00:42:18,060 --> 00:42:18,320
Yeah.

1321
00:42:18,320 --> 00:42:19,520
No kidding.

1322
00:42:19,520 --> 00:42:21,100
Like every second block.

1323
00:42:21,100 --> 00:42:21,980
That sounded rude.

1324
00:42:23,400 --> 00:42:26,980
That sounded rude.

1325
00:42:27,120 --> 00:42:29,220
I didn't mean for that to come
off.

1326
00:42:29,220 --> 00:42:29,440
Yeah.

1327
00:42:29,440 --> 00:42:30,040
You guys are everywhere.

1328
00:42:30,040 --> 00:42:30,700
I love it.

1329
00:42:30,700 --> 00:42:32,220
So thanks again for coming on.

1330
00:42:32,220 --> 00:42:32,840
Really appreciate it.

1331
00:42:32,840 --> 00:42:33,160
Thanks.