Warner Lambert
 
 The Challenge 
The lease for the head office of Warner Lambert Canada had reached the midway point of a twenty-year commitment. The rate for the first ten years had been fixed at the outset of the transaction, but the rate for the latter ten years of the lease was to be a market rent negotiated between the involved parties. In the event that they could not agree on a fair rate within the specified time period, the issue would be taken to arbitration.

The atmosphere of increasing market rates and decreasing vacancies made it clear to everyone that a move for Warner Lambert was impractical. The company was entrenched in a building with a lengthy lease and a large investment in infrastructure. The landlord of the building, located at 2200 Eglinton Avenue East, initially proposed relatively high rental rates and persisted in demanding the rates even if arbitration was necessary.
 
 
The Solution  
The CB Richard Ellis team believed that the arbitration could become long, involved and expensive for Warner Lambert. At a number of strategy sessions with the senior executives of Warner Lambert, the team proposed that it was necessary to demonstrate to the landlord why the client believed the proposed rates to be excessive and then convince him that they were prepared to defend this position in arbitration.

The CB Richard Ellis team provided a series of crucial comprehensive reports based on recent transactions, which would lend credence to the argument for lower rental rates. Based on the team’s recommendation, Warner Lambert also hired a lawyer and an engineer to become a part of the negotiating team. The lawyer provided a favourable opinion regarding the specific criteria for market rent as set out in the lease. The engineer contributed an analysis of the condition and value of the systems within the existing facility along with an estimate of the cost to upgrade those systems.