Choosing A Commercial Property Management Company Cheat Sheet
Q: I’m buying commercial property – how do I choose a property manager? -B.L., Toronto
A: Capable, full-service, commercial property management is essential to thesuccess of a commercial real estate investment portfolio. Recommendations by experienced Realtors® for specialized services is advised – yet, how do you know that you’ve received a good recommendation? Here are the steps to take to ensure a positive property management experience with a professional, much of which also applies to self-managed commercial properties:
Most property management firms will provide a free, written proposal outlining services to be expected, accompanied by several written references …
Is Now The Time To invest In Commercial Real Estate?
Economic conditions have made commercial property investing a more viable option for more investors. Is now the time to consider reducing or increasing your Toronto commercial real estate investment portfolio?
What The Bank of Canada Interest Rate Cap Means For Commercial Real Estate Investors
The Canadian real estate industry was abuzz from coast to coast over the recent Bank of Canada (BofC) monetary policy report released by Bank Governor Stephen Poloz. The central bank has modified its outlook for economic growth, forecasting 1.6 per cent this year and predicting increases in 2014 to 2.3 per cent and 2.6 per cent in 2015, a notable downgrade from their July forecast. BofC predicts economic recovery by the fourth quarter of 2015 and announced that the key interest rate will remain at one per cent, at least until then, possibly beyond. BofC’s warning of an inevitable rate …
Commercial Real Estate’s Industrial Revolution in the GTA
Q: I currently own a small office complex and am considering other types of commercial real estate investment, but am not sure which direction to take. Should I stick with office space or branch out?
A: Retail and Office real estate accounted for only 10% each of all commercial property leased in the GTA during the third quarter of the year. This recent two-minute video report from TREB Senior Market Analyst Jason Mercer illustrates that, “80% of leasing activity was accounted for by the industrial segment of the marketand industrial transactions were up… approximately 30%,” making industrial properties worth …
Canon, Air Canada on the move to Brampton, Ontario
Q: We’re looking for land in the GTA to build our company headquarters. Where would you suggest?
A: On the heels of a similar announcement from Air Canada in late 2012, Canon Canada Inc recently announced that they, too, are building new corporate head offices in the GTA. After careful assessments, each company chose to headquarter in Brampton, Ontario.
Brampton Mayor Susan Fennell announced in January, “I’m thrilled that Canon Canada, a globally renowned company, will open its new corporate headquarters in Brampton. It’s a great boost to Brampton’s economy.” Mayor Fennell later added, at the February Board …
Commercial Real Estate and the GTA’s Planned Urban Thrall
Q:My partner and I want to capitalize on a commercial property we own together, so are considering either developing or selling it. It’s several acres and zoned for most uses. Which do you recommend?
A: Your property is not only in one of the fastest-growing real estate markets in Canada, but also in the most well-planned. Forecasts predict that Ontario’s Golden Horseshoe area will grow by 3.5 – 4 million by 2031, increasing the population by nearly 50%. Leading the way on urban planning, Places to Grow is the official land-use plan for the …
Toronto Commercial Real Estate Leads Economic Growth
Q: An investor has expressed interest in buying my apartment building to convert into condominiums for resale. Hasn’t the height of the condo market seen its day in Toronto?
A: The GTA’s condominium market is alive and well. Recently appointed Vice President and Deputy Chief Economist for TD Bank Group, Derek Burleton, leads a team of financial analysts and is the author of respected economic reports like, “A New Normal: Canada’s Potential Growth During Recovery and Beyond.” Burleton kicked off the new year serving as the 2013 Outlook Keynote Speaker at a January industry event hosted by the National …
Retiring Baby Boomers Create Property Demand for Assisted Living Facilities
Q: The vacancy rates in my mid-century, mid-sized professional and office buildings and small malls have been steadily on the rise over the last twenty years, while my apartments enjoy a steadier rate of return. I’ve thought about converting some, but construction is not my field. Should I hold on and wait for the commercial rental market to bounce back?
A: The market for retail, office and light industrial properties is evolving. Many commercial property owners are taking advantage of developing markets in order to guard the bottom line. Most notably, many stakeholders and developers alike are now …
Commercial Real Estate Ownership Options
Q: I inherited a building. Do I have to form a corporation to keep it?
A: As in all businesses, commercial property ownership can take a variety of forms. The various types of ownership fill different needs, and it’s useful to have an overview of all options to know which one is right for you. You do not necessarily have to form a corporation, and most don’t. However, you may want to do that very thing, despite the inherent costs of start-up and maintaining a corporation, in order to protect your assets.
By far …
Buy Low, Sell High? Your Investment Property Exit Strategy
Q: My commercial property is performing well, but I see a lot of opportunities available in other real estate. I hesitate to maximize my credit, but it seems a good time to buy. I’ve also thought about selling to finance acquiring more property. How can I tell if it’s a good time for me to sell?
A: The custom of holding onto income property til death do us part, more or less, is rapidly declining, along with the changing profiles of ownership and of how business can profit in this century. Long gone are the days …