Article
How CBRE Supports Not-for-Profits With Real Estate Solutions
April 17, 2024 4 Minute Read
Sarah Henderson found a niche early on in her career when she met her first big client in the not-for-profit sector.
The not-for-profit sector represents a significant part of Edmonton’s office market and Henderson saw an opportunity to focus her business development in this dynamic space.
“My first large client was a not-for-profit,” says the Senior Sales Associate with CBRE Edmonton. “The experience attracted me to the sector and I’ve since built a client list that is heavy on the non-profit sector.”
It’s interesting work, and it can have a big impact on important causes and charities. But it also comes with its share of challenges.
“It’s a bit of a niche,” Henderson explains. “And with non-profit groups you don’t always know if they’re going to get funding and if the deal will end up happening, so it comes with a degree of uncertainty.”
Non-profits aren’t just leasing office space; one of Henderson’s clients recently bought a 40,000 sq. ft. building in West Edmonton.
“A lot of non-profits like the idea of purchasing because it provides them with certainty, especially at a time of rising costs,” she says.
“They know there will always be demand for their services, but there are competing demands for government support. So having control of their real estate future can really help not-for-profit groups.”
Henderson walks us through the other challenges she faces with her non-profit clients, and how CBRE can help solve them and set these groups and their landlords up for mutual success.
Limited Budgets
Not-for-profit businesses have limited budgets and inconsistent funding, which can make it challenging to find suitable office space options.
“Budgets can be unpredictable,” Henderson says. “Funding that a group has for the next five years might not be available after that time. And non-profits often work within strict parameters.”
She and her team negotiate on behalf of their not-for-profit clients to ensure they can handle the lease costs and financial position today and in the future.
“And we help these groups understand the lease agreement and any associated costs, such as maintenance fees or operating costs, to ensure they’re not caught off guard by unexpected expenses.”
Best of the Bunch
Given budget limits, not-for-profit businesses typically have fewer office spaces to choose from, particularly if they are looking to be in a specific location or with certain amenities in mind.
Henderson, powered by the CBRE platform, can leverage extensive market knowledge of available options and offer clients access to off-market properties, providing a greater range to choose from.
“We’re also taking the neighbours into consideration,” she says. “We are mindful about who is going to be sharing the building with them.”
Time Constraints
Not-for-profit businesses can face time constraints when it comes to finding new office space.
“I had a non-profit that had a grant and needed to be in the space within a month, as required by the grant,” Henderson recalls.
“We had done a bit of research ahead of time anticipating they might get the grant. So we were ready with options and were able to move them into a great space within that super tight timeframe.”
Relationships with landlords can play a big part here, she acknowledges. “Our team has worked with most landlords in town, and we know which ones can work that fast. And we call in favours if we need to.”
Many landlords are also facing excess office space and looking to non-profit businesses as increasingly valued partners.
“And having tenants from a non-corporate background and engaging community stakeholders can also align with ESG goals that the landlord and investor community share,” says Henderson.
Tax Implications
Not-for-profit businesses may not be aware of the tax implications of leasing or purchasing office space.
“We know what to expect at every step of the process, from finding a space to dealing with the tax implications for a property,” says Henderson.
“We know the right questions to ask and where we might come across challenges, so we can forewarn our clients and make certain there are no surprises.”
“We want these groups to continue to do good things for the Edmonton community,” she adds. “Let the experts at CBRE take care of all the real estate details.”
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