FAQ
Industrial real estate questions, answered plainly.
General, educational answers for buyers, sellers, landlords and tenants of industrial property in the GTA. For anything specific to your situation, consult your lawyer, accountant or lender.
Buyers & investors
What should I look for when buying an industrial building in the GTA?
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Start with operations: total size, clear height, shipping doors and truck court, power supply, office ratio and yard space. Then confirm zoning permits your use, and assess location against highway access and your labour pool. Due diligence typically covers environmental, building condition, title and municipal compliance.
Is a Phase I Environmental Site Assessment required?
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It isn't legally required in every purchase, but it is common for industrial property and many lenders require one. A Phase I reviews historical use and site conditions; if it identifies potential concerns, a Phase II involving sampling may follow. Your lawyer and lender can advise on what is appropriate.
How is financing different for industrial property?
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Commercial mortgages are underwritten on the property, the borrower's financial strength and, for investment property, the income produced. Down payment, amortization and terms vary by lender and situation. Speak with a commercial lender or mortgage professional early in the process.
Should I buy or lease my industrial space?
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Buying offers control, potential equity build-up and protection from rent increases, but ties up capital and concentrates risk. Leasing preserves capital and flexibility. The right choice depends on your growth plans, balance sheet and how long you expect to stay. An accountant can help model the financial side.
Sellers
How is an industrial property's value determined?
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Value reflects comparable sales and the building's specific attributes — location, size, clear height, shipping, site coverage, condition, zoning and, for tenanted property, the lease income and tenant quality. Different buyer types (owner-users, investors, developers) may value the same property differently.
What documents should I prepare before selling?
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Survey, site and floor plans, building specifications, any environmental reports, permits, realty tax and operating cost information, and for tenanted property, all leases and a rent roll. Having these ready shortens due diligence.
Can you guarantee a sale price or timeline?
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No. No REALTOR® can guarantee a price, timeline or outcome. What a strong process does is present the property accurately, reach the right buyers and negotiate carefully — improving the odds of a good result.
Can I sell my building and keep operating in it?
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Yes — a sale-leaseback lets an owner-operator sell the property and lease it back. It can free up capital while maintaining operations. Tax and legal implications should be reviewed with your accountant and lawyer.
Tenants & landlords
What is a net lease?
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In a net lease, the tenant pays base rent plus additional rent — typically a share of realty taxes, insurance and operating costs. It is the common structure for GTA industrial property. Responsibility for structural items and major systems varies by lease.
What is an offer to lease?
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The offer to lease sets out the key business terms — rent, term, inducements, deposit, conditions and permitted use. Once accepted, a formal lease document is prepared. Both should be reviewed by a lawyer before signing.
How early should I start looking for space or planning a renewal?
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Earlier than most expect. Searching, negotiating, completing improvements and relocating takes time, and lease renewal options often require notice well before expiry. Starting early preserves alternatives and negotiating leverage.
Who pays the real estate commission on a lease?
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Commission arrangements vary by transaction and are set out in the applicable agreements. In many industrial leases the landlord pays commission, but this should be confirmed at the outset of any engagement.
Working with Meshesha
Which areas do you serve?
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Toronto and the Greater Toronto Area, including Mississauga, Brampton, Vaughan, Markham, Etobicoke, Scarborough, Durham Region, Halton and Caledon.
What property types do you work with?
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Industrial property of all types: warehouses, distribution centres, manufacturing facilities, flex/industrial space, small-bay units and industrial land.
Do you list properties on this website?
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No. This site provides general information about industrial real estate services and the transaction process. To discuss specific opportunities, request a consultation.
How do I get started?
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Send a consultation request or text 647-342-1355. Include whether you're buying, selling or leasing, the type and size of space, the areas you're considering and your timing.
General information only — not legal, financial, tax or investment advice.
Talk through your industrial requirement.
Buying, selling or leasing — a short conversation clarifies options, constraints and next steps. No obligation.
Meshesha Robel, REALTOR® · Sutton Group Admiral Realty, Brokerage