Commercial real estate value in Ontario benefits from a healthy economy.
Commercial real estate is an attractive investment in Ontario because of the province's stable economy, and social and financial amenities. Ontario includes the large cities of Toronto and Ottawa, and mid-sized and small cities such as Hamilton, Sault Ste. Marie, Kingston and Thunder Bay. All of these locations have small to large commercial properties for sale.
Local Economy
When investing in commercial real estate, it's more important you consider the local economy's health than when investing in a home. A failing local economy will threaten your investment, whether you are buying commercial real estate to run a business or to rent out space to other businesses. Ontario's economy has a history of stability and dependability, but you still need to research the present economy before writing any checks. Local economies are susceptible to various fluctuations. For example, the economy in Hamilton is dependent on the auto industry, and real estate values fluctuate along with General Motors stock.
Condition
The condition of an Ontario property is an important consideration. Hire an experienced and knowledgeable property inspector to review the property; it's a cost savings in the long run, considering the large investment in some commercial real estate deals. Ontario winters are severe, and the quality and condition of the heating system and building insulation are particularly important. Carefully check properties for any sign of foundation or roof deterioration. These are the two most important parts of a building, and are both very expensive to repair.
Future Prospects
The future prospects of a real estate market in any location are a guessing game. Consider the property's resale value so it doesn't become a liability, even if it's for your use and not an investment. Many local Ontario economies are very stable. An example is Kingston, where the prevalence of universities, prisons and government jobs provides a certain level of immunity to fluctuations in the manufacturing sector, stability that translates over to the real estate market.
Tags: real estate, commercial real estate, estate market, local economy, real estate, real estate market, your investment
