Buying commercial property in Ontario is a capital-intensive, multi-step process that rewards preparation and penalises impulsiveness. This guide outlines the key phases of a commercial acquisition, from initial criteria setting through to closing.
Define Your Criteria
The most important step happens before you look at a single property. What asset type? What markets? What is your price range, minimum size and maximum hold period? Are you an owner-user, an investor, or a developer? The more precisely you can answer these questions, the more efficiently your acquisition process will run.
Access the Market
Ontario's best commercial opportunities — particularly industrial buildings, development land and investment assets above $5M — are sold through confidential or off-market processes. A public listing search will show you a fraction of what is available. Direct access to a broker with an active mandate book is essential.
Due Diligence
Commercial due diligence is comprehensive: title review, environmental Phase 1 and Phase 2 (if required), zoning confirmation, lease review (for tenanted assets), structural and mechanical assessment, and financial underwriting. Allocate 45–60 days for a thorough process.
Financing
Commercial financing in Ontario typically requires 35–40% equity. Lenders will assess the asset quality, lease structure and the buyer's financial capacity. CMHC-insured financing is available for multi-residential. Institutional lenders and private bridge financing are options for complex or time-sensitive transactions.
Closing
Closing a commercial transaction in Ontario involves real estate lawyers, title insurance, land transfer tax and, in most cases, HST on the purchase price (or HST election between registered parties). Budget 45–90 days from accepted offer to closing for a typical transaction.