A Guide to Purchasing Commercial Real Estate in Toronto
- By seoserviceusa93@gmail.com
- •
- 11 Feb, 2019
Before you go ahead and sign any papers to purchase commercial real estate in Toronto, spend some time learning and understanding the market.
Investors in commercial real estate have to consider the following before they decide where they want to put their money:
Interest Rates
For the first time in 7 years, the Bank of Canada increased its interest rate in 2017. The interest rate set by Bank of Canada has a direct impact of the on the cost of taking out a variable rate mortgage as well as other loans.
Fluctuations in the Bank of Canada interest rates also influences the growth of corporations and consumer spending, which impacts the demand for both residential and commercial real estate.
Area Demographics
Gaining insights on area demographics is crucial to figuring out marketing dynamics before you make an investment in commercial real estate. Different demographic segments are attracted to certain locations so before you make any decisions, do study the neighbourhood.
For example, locations that attract families will have a demand for convenience stores, childcare facilities, eateries, etc. On the other hand, places with a large population of seniors will require healthcare facilities.
New developments will lure in more people and in turn lead to the growth of more commercial businesses like grocery stores, restaurants, cafes, support shops, etc.
Area demographics also serve as indicators for the following:
·Competition
·Federal and Provincial Tax
·Environmental Issues
·Investment Options
·Access to skilled labour
Keep in mind that the aspects listed above are constantly changing so you’ll need to update yourself regularly.
Once you have a strong grasp of Toronto’s commercial real estate market you can begin to look for listings that suit your requirements.
Commercial real estate properties in Toronto can be found through:
·Real estate listings: You can check out online platforms that carry information on recent listings.
·Real estate investment clubs (REI): REI clubs are basically networking events that bring all kinds of real estate investors together. Members of these clubs get access to reliable resources, advertising material and even the opportunity to invest in commercial properties at wholesale prices.
·Approaching owners: Interested buyers have the option of contacting property owners directly. Note that most property owners work with real estate agents and will refer buyers to them, instead of handling transactions themselves.
·Real estate agents: It’s not just property owners who can hire real estate agents; interested buyers can use commercial real estate agents to find investment opportunities for them.
Pivotal Commercial Realty is an experienced commercial real estate brokerage based in Toronto. We help investors find lucrative investment opportunities in Toronto’s commercial real estate market. Contact us today at 800-908-6718 for more information.
Investors all over the globe think of Canada’s commercial real estate market as a safe haven. Even though there is some uncertainty about the rise of interest rates, the contrast between tight supply and growing demand for real estate in the country has been a driving force in the real estate market.
The commercial real estate market continues to be viewed positively by international real estate investors with Toronto and Vancouver being the most popular destinations. In 2018, Toronto was considered one of North America’s major real estate markets to invest in. In 2019, both Toronto and Vancouver are expected to be in the continent’s top 3 destinations.
The growth in commercial real estate is being pushed by the increased sales in office buildings. Even the political uncertainty between US and Canada did not hamper the success of commercial real estate in the country.
Major Markets
In 2018, Canada’s commercial real estate sector hit a record breaking $36.2 billion. This growth can be attributed to the increasing demand of industrial, office, retail, multi-family units and ICI land.
Those looking to invest in commercial real estate in Canada should consider Toronto, Vancouver, Calgary, Montreal and Ottawa. In 2017, most of the growth in the sector was driven by office buildings but in 2018, industrial real estate led the way.
In the near future, the demand for industrial real estate is expected to rise due to the increase of e-commerce business in the country that are looking to build fulfillment centers nearby for fast and easy delivery.
The commercial real estate market in Canada is continuing to flourish. However various factors are expected to make bring changes to the landscape in the future.
2018 proved to be a record-setting year for the commercial real estate sector in Canada due to an influx of new projects and high occupancy rates. With that being said, property owners are advised to monitor fluctuations in the market. Like all real estate, the commercial real estate sector of Canada is prone to disruption.
Let’s take a look at the key disrupters in commercial real estate in Canada:
Shared Workspaces
There has been a dramatic shift in the way people work in the country. Canada is experiencing a boom in the start-up community , many of which are led by Millennials.
Traditional office spaces are being replaced with co-working spaces that are designed to enhance collaboration, allow for greater flexibility and lower operational costs at the same time. Open offices are much cheaper than conventional cubicles. Younger professionals have found a way to work with limited office space.
Landlords can’t just lease out their building to select tenants, they have to redevelop their office space so it caters to the demand of the modern workforce. This can involve offering flexible suites or open concept office spaces.
