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.
Calgary is a bustling metropolis, offering a little bit of everything. But one of its most prominent attributes is its abundance of land. Regarding commercial property for sale, Calgary is rich and plentiful. This fact is exemplified in Calgary’s unique inner-city industrial and commercial real estate development location—Eastpoint. This site is a finely situated commercial […]
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 2023! As a Calgary-operated business, our great joy is serving Calgarian business owners and tenants like yourself […]
Choosing a property for your business, whether commercial or industrial real estate, can have a long-lasting impact on your company. This notion highlights the importance of finding the right commercial real estate agent to become your tenant representative. While a positive first impression is an excellent place to start, you need to dig deeper to […]
When listing an industrial property, there are things to check and understand. The industrial sector of the property division is usually bustling. Typically, it is the first segment within most cities and towns to react to economic turnarounds. As such, you can prosper – even flourish – selling and leasing industrial properties. But the question […]
Industrial real estate leasing can get complicated, fast. And if you haven’t done your due diligence, these complications can become an unnecessary headache. Luckily, such circumstances can be avoided. And the best way to do that is to fully understand the asset in question and the rental and leasing conditions of the agreed-upon contract. Keep […]
If you’re looking for industrial property management services in Calgary, you’ve come to the right place. At CMS Real Estate Ltd. we offer management services for your industrial property to help alleviate the pressure and strain that’s often associated with operating a commercial or industrial facility. As a full-service industrial real estate brokerage, we provide […]
© Copyright 2023 CMS Real Estate Ltd.