Commercial Real Estate

Before making a decision on what to buy, entrepreneurs should take heed to what geographic area they are buying. Each local market has its own tax rates, land inventory and environmental issues. The supply of skilled labor in the area also needs to be considered.

Before proceeding with any decision on where to buy your real estate property, spare some time to learn and understand the market, in which you plan to invest. Familiarize yourself with:

Canadian Interest rates

The Bank of Canada raised its interest rate, a first in seven years. Such a move usually has an influence on the cost of borrowing on variable-rate mortgages and other loans. The reason you should watch out for any increase (or decrease) is that an increase affects the growth of companies and consumer spending, which in turn affects demand for commercial and residential properties.

Ontario Area Demographics

Demographics and things like population growth count as predictive tools that can help you as an investor figure out market dynamics. Think of it this way. Different segments of the population may be motivated to move to one place or the other or purchase a home in a specific neighborhood due to life events like starting a family, getting married, receiving a promotion or raise, the need for a retirement home, and so on.

As they move and settle in these places, new opportunities will arise. For instance, there will be a demand for things like childcare facilities, and places to shop, eat or hang out. A place with a high concentration of boomers will definitely create demand for healthcare services.

Chances are many of the people in these demographics will seek these services in places that are close to their homes, a situation that can fuel demand for office or commercial space for those looking to meet the needs of these people.

Similarly, locations with strong population growth may require additional services due to rising consumer demand. More cafés, grocery stores, support services, specialty shops, etc. will be needed. This translates to a demand for more commercial space.

Other Commercial Real Estate factors that are just as important to familiarize yourself with include:

• Tax matters (both at the Canadian federal and provincial levels)
• Property ownership – Learn about the requirements and rights related to ownership of property as a Canadian citizen, permanent resident, and non-resident.
• Competition
• Environmental Issues in Canada
• Investment options available – Apartments, income properties, mixed-use properties, flipping, new construction, etc. Learn about the advantages, disadvantages, and risks of these.
• Supply of skilled labor in Ontario

Some of the aforementioned aspects, like tax and purchase laws, financing, and property ownership, undergo changes more often. Therefore, you’ll have to keep yourself up to date just so that you don’t end up making costly decisions.

Once you’ve understood Toronto’s Commercial real estate market, the next thing you’ll want to focus on is how one can find a list of commercial real estate properties that tick all the boxes in relation to their needs. That’s where we come in.