Selling commercial real estate can be a lot
different than dealing with residential properties. While residential real
estate often revolves around the needs and wants of a homeowner and their
family, commercial real estate is more business-oriented. Owners invest in
commercial property to achieve an anticipated rate of return on their funds.
The key factor in selling commercial property hinges on numbers and
return-on-investment (ROI) calculations. In commercial real estate, a person
can buy, sell, lease (as a lessor or lessee), syndicate, joint venture,
develop, option, and invest in a wide range of commercial real estate
categories. Commercial real estate agents are usually familiar with many of
these areas, but generally specialize in one discipline or another. Most often,
REALTORS® that choose to focus on commercial real estate either represent
tenants or lessees, building owners or lessors, and investors looking to
capitalize on a profitable opportunity.
Here are 6 valuable tips for selling
commercial real estate in the Peel Region.
1. Become
Familiar with the Appraisal Process
Appraisals in commercial real estate are much more complicated and involve
more subjectivity than appraisals on residential properties. The inspection is only a small part of the
appraisal process. It is important to know what to ask for and also what to
provide to the appraiser. Appraisers must adhere to a strict code of ethics, so
it is important not to withhold any information that could be a part of the
appraisal process.
2. Know
Your Zoning
There are a lot of nuances when it comes to commercial use and zoning. In
order to best serve your clients, it is important to be on top of any upcoming
changes. Talk to your local zoning officer about individual properties to
ensure that you’re up to date.
3. Prepare for
a Slower Pace
While the average home will sell in between 10 and 90 days, the commercial real
estate business tends to move much slower. It can take longer to move
commercial listings, so be prepared for a slower pace, especially when you’re
first getting started.
4. Focus on
Connectivity
The Peel Region is one of the most connected communities in all of Canada.
Businesses are just a short drive away from Toronto and the U.S. Border, making
it one of the most sought after areas for commercial real estate. The Region of
Peel is within a day’s drive of over 158 million consumers. The region is
connected via Ontario’s extensive 400 series highway network and is also
located near Toronto Pearson International Airport, which is Canada’s largest
and most connected international airport.
5. Excellent
Supplier and Consumer Base
There are over 8,700 business establishments located in Brampton and over
80% of those businesses are small-and-medium sized enterprises with less than
50 employees. As a designated urban growth centre by the Province of Ontario,
Brampton has the second-fastest growth rate among the 50 largest cities in
Canada at 4.2%. An average of 18,000 people move to Brampton each year, giving
the region a prosperous consumer market.
6. Prosperous
Consumer Market & Labour Force
The last of the 6 tips for selling commercial real estate is to focus on
the expanding consumer market and talented labour force. Businesses need
talented employees to survive and prosper. Brampton’s population features a
highly skilled work force. Over 50% of residents have obtained a post-secondary
education of some kind.
With a consumer base that is expected to grow to 900,000
people by 2041, the region of Peel has become a great place to invest in
commercial real estate. Follow these 6 tips for selling commercial real estate
and you will be sure to get a great return on your investment!