RE: Staying at 1861 Wish List

From
Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com>
To
Madonna Borger <madonna.borger@thekey.com>, Timothy Thomas <tt@thekey.com>
CC
Mary Bradley <mbradley@relo-strategies.com>, "Fuller, Lauren @ San Diego" <Lauren.Fuller@cbre.com>
Date
2023-02-08 23:09:57
Folder
INBOX
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Hi Team – I just got off the phone with the Landlord. He wasn’t keen on providing any additional $ in the deal and had concerns on the allocation of funds. I was able to secure this:

  *   3 months rent abatement (tenant to pay $2500/mth vs $2000/mth) – total of $10,200 vs $7,800
  *   Treat the rental abatement similar to a TI, where you essentially get re-imbursed up to the $ amount spent after proof of work/paid invoice. In this case, the month immediately following the paid invoice will be abated. He is OK with consecutive months. Ie if work is completed today, March, April & May would be abated to $2500/mth.

I believe this to be the best achievable deal with this landlord.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

Connect with me on LinkedIn<https://www.linkedin.com/in/officespacevancouver>

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From: Wittenberg, Zachary @ Vancouver
Sent: Tuesday, February 7, 2023 2:19 PM
To: Madonna Borger <madonna.borger@thekey.com>; Timothy Thomas <tt@thekey.com>
Cc: Mary Bradley <mbradley@relo-strategies.com>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com>
Subject: RE: Staying at 1861 Wish List

I’ll let you know when I hear back.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

Connect with me on LinkedIn<https://www.linkedin.com/in/officespacevancouver>

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From: Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Sent: Tuesday, February 7, 2023 7:55 AM
To: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Cc: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>; Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>
Subject: Re: Staying at 1861 Wish List


External


Great, thank you.

On Tue, Feb 7, 2023 at 6:46 AM Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>> wrote:
Good with me. Thanks

On Mon, Feb 6, 2023 at 6:20 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
If you’re good with the attached (red-line for reference), we accepted all the changes but I left Jan 2024 as the 3rd free rent month.

On approval, I’ll send to the LL.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

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From: Wittenberg, Zachary @ Vancouver
Sent: Monday, February 6, 2023 12:44 PM
To: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>; Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Cc: Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>
Subject: RE: Staying at 1861 Wish List

We can try. I amend the doc to include it and send it back?

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

Connect with me on LinkedIn<https://urldefense.com/v3/__https:/www.linkedin.com/in/officespacevancouver__;!!GnpIGg!b68x1ELHIIlIYZs1VRWH4L1kWpyOBq0_fWuYCqyyyLdICi_riOdJI1RGfW9fm23-AMnU8x2tNu41G3_JLXc-0bmwIDzk9vhI$>

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From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Monday, February 6, 2023 11:09 AM
To: Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Cc: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>; Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>
Subject: Re: Staying at 1861 Wish List


External


I would still like to push for 3 months so we can correct these issues.

On Mon, Feb 6, 2023 at 1:37 PM Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>> wrote:
Tim,
What do you think?

On Fri, Feb 3, 2023 at 1:21 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
Hi Team – Just received the response back from the Landlord attached. Very quick with these independently owned buildings!
Highlights:

  *   Came up $100/mth on rent
  *   Agreed to 2 months of free rent – but is considered basic rent as he wants the op costs covered for the 2 months. Works out to $7800 total.
  *   No issue for 2 parking stalls
  *   Agreed to renewal provision
  *   Added and extra month of security deposit (total of 2 months). This is likely due to ownership change of the legal entity (ie no personal guarantee)

I could try him on verbally for the 3rd month again to bring it to $11,600. But let me know your thoughts.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

Connect with me on LinkedIn<https://urldefense.com/v3/__https:/www.linkedin.com/in/officespacevancouver__;!!GnpIGg!eu6aHfDGjK7qwbKpxtvIEckgSvtoBhujUdCEDTzBQXspr1tMEex56RoBYt3atbZf-mMccYPvCuYGWORS$>

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From: Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Sent: Friday, February 3, 2023 9:52 AM
To: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>
Subject: Re: Staying at 1861 Wish List


External


Thank you

On Fri, Feb 3, 2023 at 9:43 AM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
Ok. I’ve made the adjustment on the attached for free rent and parking. For Free rent, I put 2 up front (April/May) and then January 2024.

I’ll send it in now.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC  V6E 0C3
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

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From: Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Sent: Thursday, February 2, 2023 10:16 PM
To: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>
Cc: Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>; Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>; Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Subject: Re: Staying at 1861 Wish List


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I would try for 3 months free rent and change the parking.
Thanks

On Thu, Feb 2, 2023 at 8:19 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
Ok. Are we going with the LOI as drafted with the change just to the parking or..?

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>  V6E 0C3<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

Connect with me on LinkedIn<https://urldefense.com/v3/__https:/www.linkedin.com/in/officespacevancouver__;!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAohq2grdA$>

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From: Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Sent: Thursday, February 2, 2023 2:11 PM
To: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Cc: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>; Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>
Subject: Re: Staying at 1861 Wish List


External


Yes i agree....let's see what he says

On Thu, Feb 2, 2023 at 2:06 PM Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>> wrote:
I'm ok with Zachs recommendation provided Madonna is as well.

On Thu, Feb 2, 2023 at 4:44 PM Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>> wrote:
oh sorry forgot it was retail.

On Thu, Feb 2, 2023 at 1:36 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
Ok I can make the adjustment to the parking. We can make the push for an additional month and/or the LL may want to push the rent higher to accommodate the work involved similar to a TI allowance. Ie. Say the LL agrees to $6k for the flooring, he would expect approx. $170/mth rent increase over the term. We can try that route?

In retail spaces, tenants are typically responsible for their own improvement work at their cost.

Let me know.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>  V6E 0C3<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

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From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Thursday, February 2, 2023 12:26 PM
To: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>; Mary Bradley <mbradley@relo-strategies.com<mailto:mbradley@relo-strategies.com>>
Cc: Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>; Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Subject: Re: Staying at 1861 Wish List


External


Thanks Zach,

The cost of those items will definitely exceed the 10k in abatement. @Mary Bradley<mailto:mbradley@relo-strategies.com> What are your thoughts? Can we push for a third month and or invest another few thousand to complete these changes?

Side note, I reviewed with the team and we only need two parking spaces, not three.

On Thu, Feb 2, 2023 at 1:35 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
Hi Tim – I’ve attached a simplified non-binding LOI for your review & approval.

When I spoke with the Landlord on the below items, he was aware we’ll be asking for some subsidy to do these improvements. Notably, floor replacement, washroom upgrade and adding baseboard heat to the backroom. As far as the handicap accessibility – he noted that the neighboring tenant is in the medical assistance business so they installed the retractable ramp at their own cost and maintain/operate it as such.

Highlights:

  *   3 yr term
  *   Slightly lower monthly rent @ $5800/mth
  *   2 months of free rent (April & December 2023) – I don’t believe he is prepared to go beyond given his level of interest in the space.

Happy to walk through it or if approved I will present today.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>  V6E 0C3<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>
T +1 604 662 5158 | C +1 778 990 9105
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From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Wednesday, February 1, 2023 12:17 PM
To: Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>
Cc: Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>; Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Subject: Re: Staying at 1861 Wish List


External


See answers below

•  Mold in the back room and under the  office floor ( is this not a landlord expense?) and ensure there is heat available- replace flooring OK. Was there a previous leak that wasn’t remediated properly.- Water tank from the Salon blew about 8 years ( before my time) it was mopped up but never professionally dried thus the floor thus it is warping. We had one other minor one that also was cleaned up but not professionally dried
•  Washroom floor tile needs replacing OK
•  Heat in back boardroom needs to be fixed as its freezing all the time – Is this baseboard heat or ducted?- no heat at all we have always used a portable heater .
•  Front entrance is not handicap friendly – I’m told this is grandfathered. Nothing they can do about it due to the street slope.- next door has a ramp not sure what kind of expense that is ( it retracts etc)


On Tue, Jan 31, 2023 at 8:50 PM Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>> wrote:
I spoke with the Landlord to try and pre-address the noted issues. He said he is going to the site tomorrow @ 12pm and will take a look. I have a couple comments below in red:

  *   Mold in the back room and under the  office floor ( is this not a landlord expense?) and ensure there is heat available- replace flooring OK. Was there a previous leak that wasn’t remediated properly.
  *   Washroom floor tile needs replacing OK
  *   Heat in back boardroom needs to be fixed as its freezing all the time – Is this baseboard heat or ducted?
  *   Front entrance is not handicap friendly – I’m told this is grandfathered. Nothing they can do about it due to the street slope.
Likely we can get 1-3 addressed by a free rent and pushing the LL to perform the work.
Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
1021 West Hastings Street, Suite 2500 | Vancouver, BC<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>  V6E 0C3<https://urldefense.com/v3/__https:/www.google.com/maps/search/1021*West*Hastings*Street,*Suite*2500**A7C*Vancouver,*BC*V6E*0C3?entry=gmail&source=g__;KysrKysrJSsrKys!!GnpIGg!axEWjL73sMBQJMuhfnxpZr_FgT9AmzMLODbeJlcS0Ns9E4oTVxb3oRvnCjCkoh6qsNNReiaja3IcbkCfIbpV7AYAojvqO3F5$>
T +1 604 662 5158 | C +1 778 990 9105
Zach.wittenberg@cbre.com<mailto:Zach.wittenberg@cbre.com> | http://www.cbre.ca/ZW<https://www.cbre.ca/en/people-and-offices/zachary-wittenberg>

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From: Wittenberg, Zachary @ Vancouver
Sent: Tuesday, January 31, 2023 3:56 PM
To: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>; Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>; Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>
Subject: RE: Staying at 1861 Wish List

Thanks Tim. I can draft an LOI or I can address these with the Landlord to see what he’s willing to do.

Zach Wittenberg | Vice President
Personal Real Estate Corporation
CBRE Limited | Real Estate Advisory & Transaction Services
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From: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>
Sent: Tuesday, January 31, 2023 4:00 AM
To: Fuller, Lauren @ San Diego <Lauren.Fuller@cbre.com<mailto:Lauren.Fuller@cbre.com>>; Madonna Borger <madonna.borger@thekey.com<mailto:madonna.borger@thekey.com>>; Wittenberg, Zachary @ Vancouver <Zachary.Wittenberg@cbre.com<mailto:Zachary.Wittenberg@cbre.com>>
Subject: Fwd: Staying at 1861 Wish List


External


Good morning,

Below is a list of items that would need to be addressed in the existing space if we are to renew the lease.

---------- Forwarded message ---------
From: Sharon Speirs <sspeirs@thekey.com<mailto:sspeirs@thekey.com>>
Date: Mon, Jan 30, 2023 at 5:14 PM
Subject: Staying at 1861 Wish List
To: Timothy Thomas <tt@thekey.com<mailto:tt@thekey.com>>


Hi Tim

As per our conversation here is a list of concerns that would need to be looked at as well as the wish list:)

Items to be addressed at 1861 if we stay


  *   Mold in the back room and under the office floor ( is this not a landlord expense?) and ensure there is heat available- replace flooring
  *   Washroom floor tile needs replacing
  *   Heat in back boardroom needs to be fixed as its freezing all the time
  *   Front entrance is not handicap friendly
thanks so much
Sharon
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