A Higher Level of Sophistication to Office and Retail Ownership

The Burnaby strata office and residential markets have seen significant increases in supply and demand over the past 10 years. What was typically seen as two different assets, investors are beginning to realize the potential in office strata as price per square foot continues to increase as new projects come to market. Additionally, existing resale projects with strata offices has shown exponential capital appreciation, year-over-year. Silver resales increased from $534 per SF in 2013, when the project launched, to $762 up to $913 per SF in 2016 (an average increase of 57%).

Benefits to owning office strata over residential real estate includes worry-free triple net leases, a higher rate of return compared to residential investments, less turnover as commercial lease terms are typically five years or more, and the opportunity to diversify your wealth portfolio. In addition, the 15% property transfer tax on foreign buyers does not apply to commercial properties.

There are several benefits to owning commercial real estate versus leasing. Monthly mortgage payments help owners build equity because a portion of those monthly payments goes towards paying down the principle loan amount. When owners eventually sell or refinance their property, they can extract the difference between the remaining loan amount and the current fair market value as equity for their business. With leases, payments go to the landlord and no principle is paid down. In addition, monthly mortgage payments are often less than monthly lease payments. The following can be deducted when calculating tax payments: interest expense, depreciation expense and non-mortgage related expense. Commercial real estate owners control their own property, whereas landlords have certain rights built into the lease, including the legal right to raise the rent on a tenant’s lease at least once a year.

With the majority of units sold out during opening weekend, a limited quantity of office, daycare and restaurant space is available for sale. Don’t miss your opportunity to purchase premium corner office units from 1,400 square feet up to 1,900 square feet; featuring impressive views, excellent business services and cutting-edge technology. For more information on ownership opportunities at THE CENTRE at Sun Towers, please visit our website: www.thecentreatsuntowers.com or call: 604 336 0899.