Question 1

What does a commercial REALTOR® do that a residential agent does not?

Accepted Answer

A commercial file is valued on income, not on comparable sale price alone. That means reading the lease in full, abstracting the term, options, escalations and operating costs, confirming permitted use with the municipality, and rebuilding the rent roll to get a real net operating income. On a business sale there is also franchisor approval, equipment lists and staff transition to coordinate.

Question 2

How is a cap rate calculated on a Calgary retail property?

Accepted Answer

Cap rate is net operating income divided by purchase price. NOI is gross rent less vacancy allowance and the operating costs the landlord actually carries, not the pro-forma figure printed on a listing sheet. Calgary multi-tenant retail has generally traded in the five to seven percent range, but the number only means something once the leases behind it have been verified.

Question 3

Can I buy a business without buying the building?

Accepted Answer

Yes. You purchase the business — equipment, build-out, brand rights and goodwill — and take an assignment of the existing lease from the landlord. The lease terms then matter as much as the asking price, because a short remaining term or a weak renewal option can make an otherwise good business hard to finance or resell.

Question 4

What deposit and financing should I expect on a commercial purchase?

Accepted Answer

Commercial lenders typically want thirty to thirty-five percent down on property, and business acquisition loans are underwritten against cash flow and often need a personal guarantee. Franchise purchases can sometimes access brand-specific lending programs. Engage a commercial mortgage broker before writing an offer.

Question 5

How long does a commercial transaction take to close?

Accepted Answer

Plan for sixty to ninety days from accepted offer. Due diligence alone commonly runs thirty days to cover financing, environmental review where it applies, lease and zoning confirmation, and landlord or franchisor consent. Residential closings in the same market usually run thirty to forty-five days.

Question 6

Do you also handle residential buyers and sellers?

Accepted Answer

Yes. Roughly half the practice is residential across Calgary, Airdrie and the surrounding towns, with full access to the Alberta MLS®.

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