What You Need to Know about Investing in Commercial Real Estate?
A Beginner’s Guide to Investing in Commercial Property
Navigating the details and legalese of commercial property can be difficult and time-consuming. At MCL, our team of real estate agents share their knowledge in a series of weekly blog posts designed to help inform and educate prospective buyers.
The recent housing boom in Canada has encouraged many people to buy a residential property as an investment; however, buying a commercial property can be a lucrative investment, even for beginners. Many residential property investors are intimidated when considering investing in a commercial property to maximize the return on their investment. But with a little homework and the right commercial real estate agent, investing in commercial could be the right step for your financial portfolio.
The Pros and Cons of Investing in a Commercial Property
The financial reward of a commercial property has the potential to be much higher than a residential property. But as with any investment, understanding the pros and cons of buying a commercial property is essential to ensure that this is the right investment for you.
Commercial properties include retail buildings, office buildings, warehouses, industrial buildings, apartment buildings, and “mixed use” buildings.
Take the time to research the demographic trends of the area, including population growth, employment, transit, and development. The right real estate agent with expertise in commercial properties can assist you with this type of data.
When considering a commercial property for purchase, it is vital that you check into the legal implications of the operation.
- Can the property be legally used for the intended commercial use?
- Does it satisfy any environmental concerns?
- What are the licensing obligations
- Are there any zoning restrictions
These are just a few areas to be explored, but it is vitally important to make sure the legal details will not impede future intended operations.
If you have questions about buying or leasing a commercial property, contact us, we’ll be happy to answer any questions you may have.