Light industrial strata buildings are a hot commodity these days! They typically range in size from 1500-3000 square feet, but of course come in all shapes and sizes! You can find these types of commercial real estate investments all over, but they are most typically found in light industrial parks in suburban areas like Richmond, Coquitlam, Surrey, and Langley.
A very typical property would be tilt-up construction, and would have a warehouse on the main floor, with a mezzanine office on the second floor. Most of these buildings have 10 ft high, grade level overhead doors at the front, and very high ceilings.
1. Price; you can get into these strata warehouses in Richmond for reasonable prices of $300-$400/ square foot. Much cheaper than residential real estate, and you can own your own warehouse for under $1m.
2. Versatility; there is a huge demand for strata warehouse properties right now due to their versatile nature. Pretty much any small business could easily and affordably retrofit one of these to suit their needs. They are perfect for storage, retail, running an e-commerce business, or even an office full of people.
3. Not subject to the foreign buyer’s tax. That’s right, strata commercial properties are not subject to the 20% foreign buyers tax. For that reason, they are highly sought after by foreign investors who don’t have to pay the penalties associated with multi-family and single family residential investing.
Like all commercial real estate investments, you need to know what you are getting into first! Remember that down payment requirements are typically higher, financing terms aren’t as low, and that vacancies can last for much longer in the light industrial world. Having said that, these strata warehouses make great investments, whether you are using it to house your own business, or leasing it out.
Looking for some advice on strata commercial properties? Please reach out to our strata management company today for your residential or commercial needs!
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