The commercial real estate market in Ontario remains dynamic, with rising demand in major cities like Toronto and the Waterloo region. However, there are several key considerations that prospective investors should bear in mind in 2024.
One significant issue involves zoning restrictions and the complexity of Ontario’s municipal regulations. With the push towards more sustainable urban development, municipalities are introducing restrictions that may affect the potential uses of a commercial property. It’s vital to work with a lawyer familiar with the latest zoning changes to avoid potential pitfalls.
Furthermore, recent interest rate hikes have increased borrowing costs for investors. Conducting a thorough due diligence process, including evaluating financing options and the financial health of the property, will be key to making sound investments in the current climate. Whether you’re buying an office building or a retail location, understanding local regulations and the financing landscape is essential for a successful acquisition.
