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We’ve spoken before about the development potential of Niagara in both the residential and commercial sectors. Commercial real estate can be a great investment, as properties in the commercial sector are intended to generate profit. The property types available for investors are plentiful in the commercial sector in the Niagara real estate market. The commercial real estate sector is very precise when defining property types and can be broken down into several different categories for investment potential.
How is each property type defined?
Office
Office properties can include a single building designed for office use or a group of offices in a single building. Investors are able to make a profit from rental payments from the tenants. Office buildings tend to have longer leases, meaning that if vacancies become available, they may last longer than a multi-home building.
Industrial
Industrial properties can be broken down into heavy manufacturing, light assembly, flex warehouse and bulk warehouse. The strategic location of Niagara to large Canadian, American and international markets, has meant a high interest in the region’s industrial properties.
Retail
An investment in retail can either be small (i.e. a single retail store) or large (a shopping centre). Retail shopping centres can be an incredibly profitable sector, allowing investors to acquire a multitude of tenants. A large number of shopping centres have been developed in the region, including SmartCentres in St. Catharines and the new RioCan development in Niagara Falls.
Apartment
A commercial property is defined as any real estate larger than one house on a single lot. The need for multi-home buildings in Niagara is apparent as a result of the two educational facilities located within the region (ex. the rise of student accommodation in the City of Thorold). There can be high turnover, as students are likely to sign a one year lease.
Land
Land can be a great investment in the commercial sector, especially because land is a scarce commodity. Depending on the zoning, you would be able to develop the land into something of value. Land investment opportunities in Niagara include undeveloped land for future developments.
Miscellaneous
Outside of the major commercial property categories, all other nonresidential properties can be grouped under miscellaneous. Examples of other commercial investment properties include: hotels, car washes, theatres, churches, and restaurants. Niagara offers many choices for investments in the hospitality sector, however, these can be a little more complicated than the previously mentioned categories, as many of the properties would require you to run the business, involving different regulations.
You'll need the right appraiser to find you the right property
When looking to invest in Niagara, you need to know the risks involved. Risks are dependent on the market value and a Niagara real estate appraiser can help assess the value of your property whether you are looking for a first mortgage or a refinancing. There are an abundance of potential real estate investments in Niagara- you just need to know where to look. Connect with a commercial appraiser today to discover the investment potential in Niagara.
