Have you considered investing in commercial Canadian real estate recently? Purchasing investment properties frequently offers a lucrative way to expand your financial holdings. Yet prospective buyers need to exercise prudence. Consider asking your real estate agent for assistance researching any of these potentially high risk types of holdings:

1. Former Gas Stations

Sometimes prospective realty buyers discover attractive deals on small gas stations. While refurbishing these properties and renting them out as retail sites may seem tempting, it remains important to verify whether or not the seller has removed or remediated underground storage tanks on the premises. Fixing leaks from old, decaying buried gasoline tanks can consume a small fortune!

2. Abandoned Mines

Similarly, commercial real estate shoppers must exercise due diligence before purchasing abandoned mining sites. Even a previously active mine often contains recent, potentially serious, safety issues. For example, in the past gold miners often utilized cyanide during refining. Some old mines still contain a high level of cyanide in the soil. A single lawsuit from a neighbor injured by polluted groundwater runnoff may demolish an unwary investor’s profits.

3. Industrial Sites

Of course, purchasing a former industrial site requires caution, too. While today many older buildings make excellent renovation projects, the nature of the commercial activities conducted on the site in the past often influence the suitability of the location for new residential or commercial uses. (Remember, during former decades, many factories utilized toxic substances extensively during production processes: asbestos, lead, and sulphuric acid still contaminate some plants.)

In most cases, a prospective buyer should consider performing extensive investigations to determine the exact nature and scope of the industrial activity conducted on a property before making a purchase offer. It may prove wise to request current environmental testing before investing significant sums. Consultation with an experienced commercial Toronto real estate agent often proves extremely helpful!

4. Former Military Facilities

Military bases frequently include storage depots for munitions. Prospective buyers hoping to renovate these locations for modern business or residential uses need to proceed with care. Did the site once contain weaponry? Have any stockpiled weapons leaked caustic substances into the local groundwater? What types of materials did any warehouses near the site store in the past? Does the realty present a fire or explosion hazard? Obtaining answers to these types of questions initially may save an investor considerable frustration, delay, and expense later.

Some savvy investors achieve stunning success purchasing commercial real estate bargains. By checking the sites of former gas stations, mines, factories, and military sites carefully, ambitious property seekers may avoid disappointments. Careful research prevents mistakes!