Investing in Commercial Real Estate in Toronto
By : Hesham Farid
Commercial real estate represents a prime investment opportunity with high potential for the right buyer. If you’re considering your next investment, commercial real estate in Toronto should be at the top of the list.
Countless benefits come from owning commercial real estate in Toronto. In the following sections, we’ll explore some of the most important advantages.
When you’re ready to move forward with a commercial mortgage application or if you simply want to explore the lending market to find out what kind of rates and terms you would be looking at, Mortgage Capital Investment is ready to help. We are licensed commercial mortgage brokers and can make your dream of owning commercial real estate in Toronto a reality.
There’s High Income Potential in Commercial Real Estate
As Canada’s largest city, Toronto is an excellent area for real estate investment. As the population continues to grow, real estate is likely to become more valuable. We’ve seen this in highly urbanized cities around the world, and Toronto isn’t likely to be any different.
Owning commercial real estate in Toronto can give you exposure to high-income potential. Commercial buildings and mixed-use buildings typically attract higher rent and sale prices should you choose to offload the asset in the future. The potential for returns is much higher when compared to residential properties.
Even if you don’t intend to sell the property any time soon, the rent generated can be significant and would greatly offset the total cost of the purchase when looking at the deposit, any investment in maintaining the property, and the money that you put back in over the term of a mortgage.
If you want to invest in a property for your business to operate from, the potential is still there. Choosing the right commercial real estate in Toronto can give you an excellent base for your business with access to a robust and highly educated job market, and more potential clients than anywhere else in Canada.
No matter how you look at it, commercial real estate in Toronto is an excellent investment.
There’s Often Less Competition in Commercial Real Estate
Toronto does have a highly competitive real estate market, but there’s less competition in commercial real estate than there is in the residential market. There are far more homes bought and sold every year than there are commercial properties.
This can benefit you in two key ways…
- With less competition for commercial real estate in Toronto, there’s a higher likelihood of finding a property that suits your long-term business goals.
- The bidding wars that exist in the residential market are rarer when considering commercial real estate in Toronto, so it’s more likely that you can purchase closer to market value.
You’ll still be competing with other potential buyers when making an offer on commercial real estate in Toronto, especially if you’re looking in prime locations, but it’s generally far less frustrating than in the residential market.
There’s a Broad Range of Commercial Real Estate in Toronto
What is your motivation for investing in commercial real estate? Are you looking for new business premises? Do you want a property for income? Are you looking to develop a site for a specialized purpose such as an entertainment hub, a shopping centre, or a mixed-use commercial and residential space? Do you want to be a landlord, or do you want your business to become the occupant of the property?
Whatever your reason for investing, you’ll find extensive options in commercial real estate in Toronto. From shopping centers and gas stations to large malls and commercial office buildings, there’s something for every type of investor.
Being Canada’s biggest city, the market for commercial real estate in Toronto is incredibly diverse.
Lower Turnover for Landlords
If you want to invest in commercial real estate in Toronto to rent out the property, you’ll enjoy the lower turnover when compared to the residential market. If you’ve previously owned, or still do own residential property with tenants, you will know how frustrating the turnover can be. It complicates the entire process and adds to the cost.
With commercial real estate in Toronto, you will typically be signing commercial tenants up to multi-year leases.
We Can Help You to Invest in Commercial Real Estate in Toronto
You’ll need the right mortgage to invest in commercial real estate in Toronto. Mortgage Capital Investment is a licensed broker ready to help you find an affordable mortgage. We work with all types of clients to find fairer mortgages with the best conditions and rates.
Start your journey towards owning commercial real estate in Toronto. We are available now to begin the mortgage consultation process.
Lowest Residential Mortgage Rates in Canada*
|Term||OUR RATE||Bank Rate|
|3 Year Fixed/ 25 yrs||3.79%||4.19%|
|3 Year Variable/ 25 yrs||2.10% Promo||2.86%|
|5 Year Fixed/ 25 yrs||3.94%||4.24%|
|5 Year Variable/ 25 yrs||2.20% Promo||2.75%|
|5 Year Fixed/ 30 yrs||4.49% Promo||4.99%|
|5 Year Variable/30y||2.70%||3.40%|
Updated: May 16, 2022
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion . Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA* * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.