Tips To Successfully Acquire Commercial Real Estate
Renting a location for your business may seem like the easiest and quickest approach to securing your business needs. However choosing to build your business in a rental storefront or office space can be detrimental to your success. This is because your business is at the mercy of your landlord and your lease agreement.
As a business owner it is essential to make smart decisions every step of the way, and this includes having full control over your location. As the value of commercial real estate in the City of Toronto and surrounding areas continues to rise, owning your business location secures the foundation of your business. And if and when you choose to sell, it’s likely you’ll benefit from capital gains.
When acquiring commercial real estate, here are a few tips to keep in mind to make sure it’s a successful and seamless experience.
Understand the local real estate market.
Before making a decision on what and where to buy, it’s important to consider aspects such as property tax rates, target market research, land inventory and environmental matters. The supply of skilled labour in the area also needs to be taken into account.
Consult an accountant.
Affordability can be a hurtle for many business owners. Before visiting a bank for a mortgage rate, consult an accountant to determine a realistic budget. Make sure your budget includes unforeseen costs such as taxes and construction and maintenance needs.
Tax implications can be complex in commercial real estate transactions. This is why it’s extremely important to consult an accountant who knows the ins and outs of commercial real estate prior to securing a mortgage with a bank.
Get your finances in order.
Getting approved for commercial real estate financing isn’t easy. Banks require proof of balanced financial statements and evidence suggesting business profits are being retained. This will play a significant role in determining whether you will obtain the commercial real estate loan you’re seeking.
It's a smart idea to shop around for the best financing package. Don’t forget that while the interest rate is important, it is not all that matters. There are other equally important factors you need to take into account such as the percentage of the purchase a financial institution is willing to finance are equally.
Choose the right construction contractors.
When hiring a builder or construction contractor, it’s essential to hire an organization that has successfully proven their quality of work through references. Key traits of reliable contractor includes their experience, timeliness and knowledge of your industry. For example, if your building must meet food-industry standards, your builder should have expertise in that sector.
A builder's financial history should also be considered. Completing a credit check is key.
About Royal LePage Realty Plus Toronto
Our commercial real estate industry and segment expertise coupled with Royal LePage’s national platform and integrated systems provides best-in-class real estate strategies and a competitive advantage that can’t be beat.
We help businesses identify opportunities and maximize their return on investment with actionable goals, centralized support services and a strong commitment to customer success. Our national partnerships help us establish, guide and execute successful business investments.
We offer commercial real estate agents a professional environment, focused 100% on commercial real estate. Agents can expect unlimited market boundaries to build their business without the interference of a heavy corporate structure. In addition, agents will be able to access Royal LePage’s national referral network of over 18,000 agents to develop more business in their target markets with incoming leads generated daily. The brokerage provides agents a suite of services including marketing, promotional, networking and professional development needs.
Innovation and service excellence have developed and propelled the Royal LePage brand since 1913. When you join Royal LePage Commercial Toronto brokerage, you have the backing of one of the most powerful commercial real estate services company in Canada—Bridgemarq Real Estate Services Inc. (formally Brookfield Real Estate Services Inc.). Bridgemarq is a leading provider of services to real estate brokers and agents. They are an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses and is listed on the New York and Toronto stock exchanges.