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.