Have you considered investing in the real estate market? There are plenty of commercial real estate investment opportunities available. Your Calgary commercial Realtor® can provide you with a list of properties within your price range. Why would you want to own commercial property in Calgary? There are many benefits of owning commercial property, some of which are mentioned below.
You can be your own landlord. Buying a commercial property where you can operate your current business makes sense. When renting space from someone else, your rental fees help the building owner pay the financing. If you own your building, you are essentially investing in your future. Your lease payments that generally would be paid to your landlord can now be applied to your building’s financing. So after a few years, you will have built equity in your commercial building.
Moreover, it may be cheaper to own your real estate than it is to rent. Contact us today for a rent-to-own analysis.
Owning a commercial building with multiple tenants allows you to invest your money and see a return on your investment. Additionally, a multi-tenant building reduces the risk if a tenant has financial issues or one’s lease expires. If such is the case, there is still cash flow from the building to cover the mortgage payment. This setup allows your realtor time to find a replacement tenant for the vacant space.
Look for buildings with a positive cash flow. This means the money coming in from the rent is more than the money going out for expenses. Every building has expenses, but if you can purchase one that has a positive return on your investment, it can be better than putting your hard-earned cash in the bank.
Owning a commercial property allows you to leverage your money. The commercial real estate market can offer you ways to invest minimal cash in more than one property. When you own more than one property, you have the opportunity to grow your profits at a quicker pace. When prices increase, you can sell one or all your properties and reap the rewards of your investment. However, this is all subject to interest rates and property values—they can both work in your favour or against you.
Owning a multi-tenanted commercial space for rent in Calgary allows you to control the type of tenants in your building. You can choose the businesses you want to have in your building to complement each other. Make sure to get long-term leases for all your tenants in the event you choose to sell your building. Having solid leases makes a building much more attractive to a potential buyer and certainly more viable for a commercial lender. Choose your commercial investment property based on the information provided by your Calgary commercial Realtor®. They can provide you with all the necessary details. One way to determine a building’s value is based on the lease rental rates. To compare properties, your realtor must be aware of these and current market rates.
Commercial real estate investing has long been associated with high returns. And while there are no guarantees, there is potential for a high Return On Investment (ROI). ROI is based on the capitalization rate of the property’s net income. The calculation takes the total revenue to the property, less operating costs, and less allowance for vacancy to determine a ‘net income.’ The capitalization rates or cap rates vary between regions (i.e. Calgary vs Vancouver), building types (i.e. industrial building vs office building) and timing (i.e. 2021 vs 2023). It’s important to note that cap rates aren’t static. Your commercial realtor would be able to analyze your building, compare it with others in the area and estimate your cap rate to determine a market value if you were to list the property for sale.
The benefits of owning commercial property can be far-reaching. And when done right, this type of investment can potentially help you accomplish many of your personal and professional goals. At CMS Real Estate Ltd., we are a full-service industrial and commercial real estate company in Calgary. With nearly 40 years of industry experience, we’re here to help. So contact us today to see how we can meet your commercial real estate needs.
The material presented in this blog is provided for general information and educational purposes only. It is not a substitute for professional advice. All information is subject to change regularly and without notice. CMS Real Estate Ltd. assumes no responsibility for any errors in the information provided, nor assumes any liability for damages incurred as a consequence, directly or indirectly, of the use and application of any of the contents of the blog/website page.
Our team at CMS Real Estate would like to wish you a festive holiday season and a happy new year! We appreciate your support and loyalty this past year and look forward to continuing to serve you in the new year! As a Calgary-operated business, our great joy is serving Calgarian business owners and tenants […]
Part of owning a brick-and-mortar small business means finding a commercial property to house your company. When the opportunity to purchase a commercial property in an up-and-coming development arises, your business will be part of the excitement with other great amenities, and you’ll help attract new business to the area. The East Point Business Park […]
As CMS Real Estate marks its 40th anniversary, we fondly reflect on a journey that has firmly established us as a mainstay in Calgary’s real estate sector. Our secret to longevity and success? A client-first philosophy. When you emphasize the importance of prioritizing client needs, it fosters an atmosphere for our clients that builds incredible […]
If you’re looking for a great industrial property for sale in Airdrie, we currently have an exciting opportunity available in the Kingsview area. Located at #104, 2926 Kingsview Blvd SE, this property boasts impressive features and amenities ideal for a: Distribution warehouse Storage warehouse Manufacturing facility Property Overview This expansive industrial property in Airdrie features […]
Calgary’s industrial landscape has long been known for its vast warehouses and distribution centres, housing goods and materials for a variety of industries. However, in recent years, compact industrial spaces are revolutionizing the way businesses operate in Calgary, providing them with adaptable solutions to meet their specific needs. The future of small industrial warehouses for […]
Operating a small business often involves renting office space, a warehouse, or other property types. There are two common kinds of commercial leases: a triple net lease and a gross lease. These two types of leases have distinct approaches to allocating costs between tenants and landlords. Whether you’re looking for a retail space or a […]
© Copyright 2024 CMS Real Estate Ltd.