Before purchasing any form of commercial property or industrial property, it is important to make sure that you are getting the best value for your money. Know more about the type of commercial property that you will be buying into and that you get the most accurate property valuation before finalizing any paperwork. Make sure that you are also not buying into property that will not be financially viable – the previous owners could have amassed a huge amount of debt that you are completely not aware of!

What is the definition of commercial property? Commercial property (also referred to as commercial real estate, investment or income property) refers to buildings or land intended to generate a profit either from capital gain or rental income. As everyone is in the business to make money, make sure that the commercial property that you are purchasing is in the right area for the type of business that you are in. If you are looking to buy commercial property with the idea of leasing it out, you need to make sure that you are protected as a buyer.

Commercial real estate is commonly divided into six categories:

  • Office buildings – this category includes single tenant properties, small professional office buildings, downtown scrapers and anything in between
  • Industrial – this category ranges from smaller properties, often called “Flex” and “R&D” properties to larger office service or office warehouse properties to the very large “big box” industrial properties
  • Retail/Restaurant – this category includes pad sites on highway frontages, single tenant retail buildings, small neighbourhood shopping centres, larger centres with grocery store anchor tenants and “power centres” with larger anchor stores such as Edgars, CNA or Totalsports.
  • Multifamily – this category includes apartment complexes or high-rise apartment buildings. Generally anything larger than a fourplex is considered commercial real estate
  • Land – this category includes investment properties on undeveloped, raw, rural land on the path to development.
  • Miscellaneous – this catch all category would include any other non-residential properties such as hotel, hospitality, medical and self-storage developments, and many more

What would be of benefit to me when purchasing commercial property?

Make sure that your business is valuated. The reason for this is so that you have a greater understanding of what your business is actually worth. There are different avenues that a valuation company will go through in order to give you a comprehensive valuation. When purchasing a property to obtain a rental income from a tenant, you will need to have a proper valuation as this valuation will assist in determining the monthly rental that you will be charging your tenant.

Property purchase need not be a daunting affair if you have the right company at your side. The Property Partnership will assist you in the valuation of your commercial or industrial property to ensure that you get the best value for your money. From purchasing and selling to tax valuations, The Property Partnership will be with you every step of the way. To find out more about property valuation, visit