Commercial property in Kawartha Lakes: what to check before an offer

Illustrative photo: Aivars Vilks / Unsplash

A commercial property can look suitable and still leave important questions unanswered. Before comparing asking prices or negotiating dates, write down what the property needs to do for your business. That brief becomes the starting point for a more disciplined review.

Define the intended use precisely

“Commercial space” is a broad description. An office, a food business, a workshop and a retail store can need very different layouts and building systems. Be specific about activities, customer visits, delivery vehicles, storage and operating hours.

Record what is essential on day one and what could be added later. Also identify the assumptions you are making. A plan that depends on an addition, a new entrance or a different use needs those questions addressed before that future arrangement is treated as certain.

Check the property, not just the listing label

The City of Kawartha Lakes directs users to its Planning and Property Viewer and the applicable zoning text when checking a property’s zoning. A brief category in an advertisement is not a substitute for that review.

Give the Planning Division the specific property details and a plain-language description of the proposed use. Ask which rules and approvals need to be considered. Keep written responses with the other information you are gathering, and have your advisers review any limitations or outstanding questions.

Build an information file

Ask what documents are available and what still needs investigation. Depending on the property, useful material may include surveys, plans, existing leases, service and maintenance records, utility information, property tax information and relevant reports.

Availability is not the same as reliability. Identify the date, purpose and author of a report before relying on it for a different decision. Your lawyer and technical advisers can help determine what additional work is appropriate.

Keep a simple record of each open question, the person responsible for answering it and when an answer is needed. That is more useful than a large folder of documents with no decision process attached.

Review physical and operating fit

Look at how the building and site would work together. Consider access, delivery movements, parking, accessibility, power, heating and cooling, water and waste handling. Ask qualified people to assess matters beyond your own expertise.

For an income-producing property, distinguish the seller’s presentation from your own review of the underlying agreements and records. Discuss the appropriate scope with your legal and financial advisers rather than relying on an advertised income figure alone.

Make the next step conditional on answers

Before making a commitment, work with your representatives on the investigation process, access to information and any conditions that may be appropriate to the transaction. The wording and timing belong in advice tailored to the particular property and agreement.

The aim is not to eliminate every uncertainty. It is to know which uncertainties remain and how they affect the decision. Aaron can help organize the commercial search and the questions that need to move with it.