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Buying Commercial Real Estate in the GTA Can Be an Excellent Investment
By Jayne B
Community Connections
 

Commercial Real Estate in the GTA

 

Commercial real estate in the GTA can be an excellent investment. The Greater Toronto Area is booming. The Government of Ontario projects population growth to reach almost 9.5 million by the year 2041. While there is terrific business potential in GTA real estate, it’s important to do some homework before getting into the market.  Here are some words of advice.

 

Why the GTA?

 

There are many reasons to invest in Toronto. According to The Economist Magazine, Toronto is the world’s best place to live when evaluating cities according to measures such as livability, cost of living, democracy, and business environment. More and more companies are looking to start up or expand businesses in the thriving metropolis, with numerous incentives such as:

  •        flexible workforce
  •        variety of work sectors, including accounting, banking, technology and culture
  •        skilled workers
  •        global connections and an international destination
  •        access to resources
  •        diverse population
  •        a reputation for collaboration, productivity, innovation and creativity

 

A look at the Toronto skyline indicates a building boom, with construction and cranes in every direction. Low interest and vacancy rates make buying a better investment than renting.

 

What to Consider Before Getting into the Market

 

It’s important to gather as much information as possible before jumping into any financial transaction but particularly when purchasing real estate. Understand the needs of the business and how it should grow and evolve. Research various locations and neighbourhoods, keeping in mind zoning by-laws, foot traffic, accessibility, how much square footage is needed and tax implications.  What are the most important features for the business?  Low cost? Space? Family friendly? Industrial? Consider locations out of the downtown core that can be more cost effective.

 

Financing Homework

 

Unless the corporation has very deep pockets, financing will have to be arranged. Know the financial health of the company. Have a proper, professional financial statement prepared. Ideally, one that includes a solid business plan. Include the company’s projected growth and any relocation, renovation and building costs. Have a contingency plan for items such as higher overhead, the costs of environmental regulations, or rising interest rates.

 

Get the Right REALTOR®

 

When looking for a REALTOR®, look for a company that has commercial real estate experience. According to CREA(Canadian Real Estate Association), a commercial REALTOR®can provide personalized services, helping clients meet their objectives. Those services include appraisals, experience in business sales and acquisitions, marketing skills and advice on property development. 

 

If the GTA core is too expensive or doesn’t suit the requirements of the business, look to what is known as the 905 area. Areas that are growing and expanding, yet still affordable can be found in the Peel Region: encompassing Brampton, Caledon and Mississauga.  The Brampton-based, boutique brokerage of JN Asensiois an excellent option when looking in this area. They have both residential and commercial real estate expertise.

 

Buying and selling commercial real estate in the GTA can involve hundreds of thousands of dollars, perhaps millions, so be sure to do your homework and have the right REALTOR®at your side to guide you through the process.