Want to learn how you can perform a digital property evaluation? Download our free eBook of the month.
When it comes to commercial real estate, it is a completely different ball game compared to residential. Commercial property buyers are often looking for different attributes than those in the residential market, attributes such as location in relation to traffic, transportation, and other highly trafficked amenities. This week, to assist with your sales, we’ve got some commercial real estate tips to assist that take into consideration many of these differences.
While investing in commercial real estate has both pros and cons, real estate costs have shot up in recent decades across the spectrum. Furthermore, in the GTA, the commercial market has been booming. Not only are prices rising, but there is not a lot of supply. Still, savvy entrepreneurs are better off buying properties than renting them.
Not only will your clients avoid rent increases, but your property will likely – based on the current market – appreciate in value as well. Plus, a buyer can deduct the value of a loan, mortgage interest or depreciation in the value of a building from company taxes—something that can’t be done when in an owner-occupied residential dwelling.
Buying a commercial space is often one of the most complex transactions an entrepreneur will ever make. That’s why it’s essential to work with a real estate professional who can do the relevant research and plan before purchasing any property to make sure it meets your client’s needs and maximizes their investment.
Commercial properties fall into many categories and include industrial properties, shopping centers, farms, offices, or even vacant land. Commercial real estate is always a major investment in time and money – especially money – so it’s important to help your client learn the most information possible about the property they are about to invest in.
So, what makes a successful commercial real estate acquisition? Knowing the local real estate market and due diligence of course. There are several factors that you need to consider before helping your clients make an acquisition, including helping them determine the type of property they want to purchase, the risks and benefits involved, and how to finance the property.
For more advice, the Business Development Bank of Canada has an excellent guide about commercial real estate. Check it out here: https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/pages/default.aspx?utm_campaign=outreach&utm_medium=blog&utm_source=canadabusiness.ca&utm_content=text-link.
Whether commercial or residential, smart real estate professionals want to ensure that, when running a search on properties being purchased, the information is accurate, up-to-date and valuable.
With the valuable information and detailed reports available through GeoWarehouse, you can rest easy knowing that you will help your clients make the most informed decision when it comes to commercial real estate transactions.
Not a subscriber yet? Visit www.geowarehouse.ca today!