Commercial Property

Explore commercial property in Canadian real estate — what it includes, how it differs from residential, and what to know as an investor or tenant.

Commercial Property



What is Commercial Property?

Commercial property refers to real estate used for business purposes, including office buildings, retail centres, industrial warehouses, and multi-unit residential buildings with more than four units.

Why Commercial Property Matters in Real Estate

In Canadian real estate, commercial properties are governed by different zoning laws, financing rules, and tax treatments compared to residential properties.



Types of commercial property include:
  • Office space
  • Retail plazas and malls
  • Industrial and logistics facilities
  • Mixed-use and multi-residential (5+ units)



These properties are typically income-producing and require commercial leases, property management, and compliance with fire and accessibility codes.



Understanding commercial property is essential for investors, developers, and businesses seeking space for operations or rental income.

Example of Commercial Property in Action

An investor purchases a small industrial building to lease to logistics tenants, classifying it as a commercial property under municipal zoning.

Key Takeaways

  • Used for business, retail, or industrial purposes
  • Zoning and tax rules differ from residential
  • Often income-generating
  • Requires specialized leases and management
  • Includes office, retail, and warehouse space

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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