What a Commercial Real Estate Agent Can Do For You
- By seoserviceusa93@gmail.com
- •
- 05 Dec, 2018
Whether you’re a beginner in the commercial real estate world or a seasoned veteran, having a commercial real estate agent helping you along the process of purchasing your dream property will save you from making some very costly mistakes. From helping you secure mortgage loans to everything from site selection, lease negotiations and discovering the best investment opportunities, a commercial real estate (CRE henceforth) agent may be your best bet at making a smart investment!
Here are a few ways in which hiring a CRE broker may be able to benefit you:
Time-Efficient
The amount of time you spend sifting through listings and looking for the perfect investment opportunity will be cut in half with the help of a dedicated CRE agent, saving you precious time better spent elsewhere. The right CRE brokerage will know exactly where to look, what to look for and will be able to provide you with more options that suit your particular needs than you would have been able to find yourself.
Industry Experience
Searching up properties, negotiating leases, and facilitating smooth transactions every day for a living, CRE agents build relationships and connections in various places. These then help you get access to unlisted properties, more financing options with lower interest rates, or even with zoning compliance. Extensive industry experience ensures they keep up with market trends, comparable building prices in particular areas and industry-specific resources when looking at properties.
Qualifications
While a residential real estate broker or agent might require a license to continue working in the profession in Toronto, a CRE agent usually requires formal, extensive training and university degree in finance. A CRE agent is usually more than capable of handling all kinds of business maths, and can provide you with accurate, calculated figures for your potential property and its future income value.
City Zoning Familiarity
Every major city in Canada follows a specific set of laws regarding coding zones that prevent certain business types from operating in certain areas. Imagine paying a hefty price for a property, only to find that you’re unable to use for business purposes because it doesn’t fall in the area’s zoning code! A professional CRE agent will be well-versed in Toronto’s various zoning codes, protecting you from making terrible real estate decisions.
Get In Touch With Toronto’s Leading Commercial Brokerage
A full-service commercial real estate brokerage, Pivotal Commercial Realty houses some of the best CRE agents in the city, and has been helping customers make better real estate decisions for well over a decade. We have successfully transacted in over $100 million worth of commercial real estate, and over one million square feet of leased land since our inception, truly earning our place as a leading brokerage of Toronto.
Contact us today to book one of the top realtors in the country.
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.
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.