In the ever-changing landscape of commercial real estate, the decision to lease or buy property is significant for any business owner. While leasing offers certain advantages, many business owners are deciding to purchase commercial condos. Commercial condos are starting to gain popularity in Winnipeg after seeing proven success in major Canadian cities such as Montreal, Toronto, Vancouver, and Calgary. This article outlines the benefits of commercial condos, providing you with the information you need to make the best decision for you and your business.
What is a Commercial Condo?
A commercial condo is a property where individuals or businesses own units within a larger multi-unit complex instead of leasing a unit within a building or owning an entire building. Similar to residential condos, each unit within a commercial condo complex is individually owned, with common areas maintained by a condominium association.
Much like residential condos, commercial condo owners also incur condominium fees to cover overall maintenance of the building’s common areas, and services such as snow removal. Commercial condos are typically on secured sites and may be serviced with utilities such as water, sewer, gas, hydro, and internet.
Why Commercial Condos?
There are numerous benefits to owning a commercial condo rather than leasing a unit:
Owning
- Growing equity: By investing in real estate, you’ll be able to create equity.
- Rental increases: No concern over rental hikes.
- Upgrades add value: Your curated improvements will increase the value of your investment, thus improving your equity position.
- Long term benefits: Property becomes an investment under your control, giving you an option to sell with or without your business. Or, rent to a user for additional income and have them pay your mortgage!
- Management Fees: Decided by the condo board which you can elect to be a part of and participate in annual meetings.
Leasing
- No value generated: While renting, you can’t create equity through property, so no long-term benefits are attained.
- Rent increases: Rental hikes are beyond your control and are left to the landlord and market to decide.
- Improving space adds cost: Improvements become part of the space, resulting in a possible rent increase.
- No value carried forward: No economic benefits will be carried forward once the lease ends and you no longer occupy the unit.
- Management Fees: Controlled by the Landlord/Management company, beyond your control.
Build Equity Instead of Paying Rent
Perhaps the most compelling reason to own a commercial condo is the ability to build equity. Unlike leasing, where monthly payments contribute to the landlord’s equity, owning allows you to invest in your future. Each mortgage payment increases your ownership stake in the property, building wealth over time. Owners also benefit from the stability of fixed mortgage payments, unlike rental rates which can increase unexpectedly.
Perfect for Small Business Owners
Commercial condos are a great solution for small business owners and contractors who may not be ready to purchase a large unit. Whether you need a showroom, office space, or light industrial area, commercial condos can be customized to fit your business’ needs.
Need a little more space? Some commercial condos allow owners to combine adjacent units, providing the flexibility to increase your space as your business grows.
Customize the Space for Your Business
Commercial condos offer the ability to customize the unit to suit the needs of your business. When you rent a commercial space, you may be limited to what you can do with the space. With a commercial condo, however, there is more opportunity and flexibility to customize the unit. Some commercial condo complexes even have customization menu lists, drive-through capabilities, and the potential to combine adjacent units!
One of the largest benefits of owning your unit is that any upgrades you make will add value to your unit when you decide to sell it. Not only will the upgrades better suit your business needs, but they will also increase the value of your investment, improving your equity position. Alternatively, when you’re renting, the improvements become a part of the space and don’t benefit you once your lease ends. They can even result in a possible rent increase.
Long-Term Benefits
Owning a commercial condo becomes an investment under your control, giving you the option to sell the unit with or without your business. Alternatively, you can rent the unit to a user for additional income and have them pay for your mortgage when you no longer occupy the unit. On the other hand, when the lease ends on a unit you’re leasing, there are no economic benefits that will be carried forward once the lease ends.
Beyond Business – Ideal for Hobbyists
Commercial condos are not just solutions for business owners, they can also be an investment for hobbyists looking for space to store their vehicles, boats, motorcycles, snowmobiles, and other recreational items. Rather than paying per month for a storage unit, hobbyists can purchase a commercial condo to grow equity while benefitting from its versatile and functional space.
Commercial Condos Near Winnipeg
Rockall Park commercial condos located in Headingley, Manitoba.
Rockall Park is a state-of-the-art commercial condo complex located just minutes away from both the west Perimeter Highway and Roblin Boulevard in Headingley, just outside of Winnipeg. This newly-built complex features 18’ ceilings, as well as a paved, fenced, and secured site with a compacted gravel compound area. With units ranging from 880sf to 1,040sf, Rockall Park is a fantastic commercial condo option for small business owners and hobbyists.
Sherwin Park industrial condos located in Centreport Canada, within Winnipeg, Manitoba and Rosser, Manitoba.
Sherwin Park is an industrial complex located adjacent to the James A Richardson International Airport and within Centreport Canada, North America’s largest tri-modal inland port. With units starting at (+/-)2,200 sf and flexible bay sizes, Sherwin Park industrial condos provide ideal spaces for manufacturing, wholesale, and distribution users.
Learn More About Commercial Condo Ownership
Investing in a commercial condo is more than just a real estate decision; it’s a strategic move towards financial independence and stability. By choosing to own rather than lease, you can build equity, avoid rental increases, and enjoy the long-term benefits of property ownership. Whether you’re a small business owner looking for the perfect workspace or a hobbyist needing a secure storage area, owning a commercial condo offers many advantages.
Learn more about commercial condos, including Rockall Park and Sherwin Park, by contacting our team.
