I. Introduction

Real estate is one of the most stable areas that you can invest in, and you have a sizable variety of choices to explore, especially in the ever-growing, bustling city of Toronto. So, let’s take this opportunity to look at how you can get in on investing in the Toronto property market.

2. Industrial Real Estate Basics

Whether you’re a first-time investor or already have a few properties in your portfolio, reviewing the basics of industrial real estate would be helpful. For starters, you should research tax rates in various locations so that you’re prepared when you find the ideal property. The other factor relates to the three types of zoning for industrial property (light, medium, and heavy) since this affects location and regulations. Keeping these aspects in mind as you peruse through listings and tour various industrial properties in Toronto will streamline your search as well as the buying process.

3. Toronto: A Golden Opportunity

Over the last five years, rental rates for industrial property have almost doubled which means an excellent ROI once you have purchased and updated a property. Plus, the demand for industrial space is still increasing, especially in the e-commerce sector. With that in mind, further development is taking place in the Waterloo region and surrounding communities if you’re looking for a less expensive (yet prime location) alternative to the greater Toronto area.

4. Ideal Location

Toronto offers the ideal business location with easy access to major highways and waterways. The city itself provides a seamless byway between residential and industrial areas while the outlying communities offer ample commuting transportation. Overall, the locations are situated in prime areas close to shipping routes that lead to the rest of Ontario and Quebec. Likewise, you’ll find plenty of highways and waterways leading to the Northwestern U.S.

5. Money Growth in Real Estate

If you follow a solid business plan, your wealth will grow steadily. Therefore, you might consider analyzing your monthly cash flow before looking at your capital growth. Also, as mentioned, keep an eye on property tax rates and other expenses that go into industrial property ownership. Make sure you’re well prepared to handle this cost which will help you to determine a reasonable but profitable rental rate for tenants. Once you’ve established a mutually beneficial relationship with a business owner who wants to rent the property, you’ll see steady growth.

6. Investing vs. Candy Store

Likewise, investing in the Toronto real estate market proves to be a marathon rather than a sprint, but that’s the nature of property investment anyway. Acquiring enough capital and getting financed takes time as well as finding the right property to put money into. So while you might be tempted to buy one of the first favorable properties, you should research it further and do your due diligence.

7. Real Estate Agents: Your Guides

Another cardinal rule of real estate investing is to always work with an experienced and reputable real estate agent. An agent who has his/her thumb on the pulse of the market can steer you in the right direction toward finding the best investment opportunities. Plus, an agent is going to represent you in the negotiation process and get you the best deal possible.

8. Understanding Risks

Just like any other business venture, investing in industrial property comes with risks. For one thing, you must stay vigilant when it comes to interest rates. When interest rates rise, you might end up with a decrease in cash flow unless you raise the rent, which may not work well with your tenant. In the case of flipping, your property’s value decreases as rates rise. Also, tenant turnover is always a risk in the rental market, but keeping up a high-quality campus that has a favorable location can help.

9. Financing Your Adventure

One of the most challenging parts of this process is getting financed and getting a lender’s approval for a mortgage on an industrial property carries more requirements than residential real estate. You must not only prove that you have the income but also show the profitability of the place that you have in mind. These details along with a sound budget need to be included in the business that you’ll present to the bank.

10. Summary & Call to Action

As you can see, exploring the Toronto real estate market comes with a lot of potential–and a lot of necessary steps. Having a clear understanding of what goes into finding an excellent location and the possible expenses that go with the sale can help you ward off some degree of risk. Plus, having an experienced real estate agent advising you along the way guarantees success. So if you’re ready to dive into the investment opportunities in Toronto, call Allen Mayer, the real estate broker who has 25 years of experience in helping numerous clients get started on their investing.


How do I get started with industrial real estate investment?

After securing the services of a licensed agent, you can start exploring property listings and financing options. Meanwhile, your agent will get a firm understanding of what you’re looking for and how much revenue you can put into the project. You’ll be handling the financing approval, but your agent may be able to advise you during that part of the process as well.

What is the typical down payment for industrial real estate investments?

For this type, you should have 50% of the selling price ready for a down payment.

Is it risky to invest in industrial real estate?

All real estate carries a risk, but an agent can help you secure the best location and a quality property, which helps to ward off this risk.

What is the future of industrial real estate?

With the rise of e-commerce in the past three years, the demand for warehouses, fulfillment centers, and to some degree, manufacturing facilities might increase. You’ll also see more of a demand for industrial space that also contains open office space that’s conducive to a hybrid workforce.