Most Lucrative Commercial Real Estate Investments in Ontario

A wealth of financial opportunities can open up to you if you are fortunate enough to have substantial capital. Next, it’s all about finding the right vehicle to enhance your equity and purchasing power, and there are few better ways to invest and get your money working for you than with commercial real estate. More specifically, I often recommend industrial properties due to their inherent flexibility and potential to grow your wealth even further.

Since Ontario is a major hub for manufacturing and industry, there will always be a group of high-worth tenants searching to expand or move their operations. By dividing your property into multiple units, you can now rent each space to small, medium, and larger businesses. Having multiple tenants doesn’t just increase your potential for profit, but it also helps reduce your risks. All of this barely scratches the surface of the nearly unlimited possibilities in commercial real estate.

In this post, let’s explore some of the most lucrative opportunities that may be available. In addition, I’ll show you how to leverage your advantages while mitigating your risks as much as possible.

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Leveraging Your Investments

As someone with extensive finance experience and the former president of an industrial manufacturing facility, I have unique insights into how commercial investments work. Knowledge, however, is only the beginning if you want to make the most of your venture.

The most successful investors have capital, and they know how to leverage it fully. Even more importantly, they have connections. For years, I have worked hand-in-hand with professionals in nearly every industry. As my client, you’ll also be able to leverage my network to find any expert you need to turn your investment into a thriving operation. For example, industrial HVAC, electrical, and plumbing contractors are all just a phone call away.

Is commercial real estate investing right for you in the current market? The posts below will help you assess your risk versus potential:

Spotting High Reward Opportunities

You might be able to uncover a fantastic commercial property by browsing listings on the MLS®. However, you’ll need to know what to look for and how to analyze the financial data to know if you might make that investment work. Even then, keep in mind that the best properties often don’t even make it to the MLS®. Instead, they change hands through word of mouth.

If you’re a new investor or trying to break into a new market, you may never even hear about the best opportunities. Since properties in Toronto come and go on the market so quickly, it’s almost impossible to point to a specific investment that will be lucrative in your situation. Fortunately, it’s not about being specific; it’s about being strategic and having someone on the inside to advocate for you.

As a long-time commercial real estate agent, I’m often the first to know when a building becomes available. I don’t just wait passively for these opportunities to arise, either. I’m out there every day, working my network and reaching out to property owners who might be interested in selling.

If you want to make sure you don’t miss out on the right opportunity, reach out to me and I will begin scouring the market for you. Additionally, I can walk you through the numbers, breaking down the current rental rates for these buildings while analyzing your potential investment and return per square foot for a specific property.

Short Term Vs Long Term Investments

Like many investments, you have to be very careful when dabbling in commercial real estate for the short term. It’s not that fast gains aren’t possible. However, you are playing a game fraught with risk with no real way to manage it. Getting in at the lowest possible price and cashing out at the precise moment is absolutely critical – and this comes down to luck rather than strategy.

The commercial real estate market typically rewards patience and careful planning, and it is definitely a long-term commitment. In time, you’ll be able to generate a reliable source of income from your rental properties, as well as build your equity as real estate values rise.

All of this requires the right balance of assertiveness and caution at all times. Being forced to exit prematurely can result in a loss, both in short-term income and long-term potential. That’s why you want to be sure that you plan for the unexpected, have a financial cushion to get you through lean times, and avoid over-leveraging yourself with too much debt. Partnering with an experienced commercial real estate agent who understands market trends and local real estate dynamics is essential to your success.

More Reasons to Partner With a Commercial Real Estate Agent

The obvious benefit of working with a professional is you have someone on your side with unique insight into the market. I can help you assess the price of a specific property right down to the square footage to help you determine whether it has potential.

That, however, is just the beginning of what I can bring to the table. With my background in finance, I can also help you understand the process and put you in touch with the right mortgage lenders.

Remember that you cannot find all of the answers on Google when it comes to really understanding the nuances of commercial real estate. Nothing contributes to a successful investment like having access to a knowledgeable team of experts at all times, from accountants and lawyers to tradespeople and business advisors. By working with me, you’ll have access to every other professional to give you the best possible chance at success.

You’ll have endless support for your transaction from start to finish. Even after your closing date, you’ll have questions about running your business or choosing a property management team during a lease or renewal. My service to you continues for as long as you hold the property and beyond.

Expertise and a network are the foundation of all successful real estate endeavours. Gain more insight in the posts below:

A Client Case Study

One of my clients had a well-established business and was looking to purchase a new commercial retail unit. We visited many different addresses, some listed on the market, and some off the market. Even though this client was experienced and knowledgeable, they were still having trouble finding the right property in the area they were looking for.

That’s when I put my network to good use. Often, finding the perfect fit is about knowing someone who knows someone who can put you in touch with someone else. And that’s exactly what happened in this case.

I reached out to a couple of different brokerages that I knew held retail real estate and eventually secured an off-market deal for my client. This particular property had the exact square footage that they needed. From here, I dispatched my trusted project manager and engineering team, who requested all the drawings from the builder. They created a beautiful layout and drawing for my client’s specific business. They also applied for the permits and oversaw all the renovations and outfitting of the project.

We even managed to negotiate a free parking space for my client in addition to the retail unit, which truly was the icing on the cake. Already, that client is eagerly looking for their next great opportunity.

Do you want to discuss what commercial real estate investments might fit your budget and investor profile? Reach out to OMarjanovic@kw.com or call 647.620.2882 to explore the possibilities.