Office Condos – How Do They Work? By Ali Akman

Though it may seem like an unfamiliar concept, a commercial condominium is very straightforward. An office condo is still a condo at its core, and functions the same way that a residential condo does, just with a different purpose. Many small and medium businesses find that an office condo is a solid investment, allowing them much more stability and versatility than renting office space typically provides.

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What does an office condo look like?

A growing trend in commercial real estate, office condos are typically part of a mixed-use building that often hold small retail, restaurants or cafes, and offices. Regal Plaza development, a mixed-use condominium in Mississauga, is a prime example of this type of commercial condominium. Located near Pearson Airport, Regal Plaza offers retail, office space, and an addition to the existing Holiday Inn for the most convenient access for business trips. With this type of building, businesses can purchase one unit or a number of units that they require and customize them to best suit their needs as a business, all with access to stores and hotel rooms for the ultimate business convenience.

SAMM Holdings’ Regal Plaza mixed-use development featuring office condos.

How does it work?

In the same way that residential condo owners share in the building amenities, so do office condo owners. Common spaces are co-owned by all office condo owners, landscaping and maintenance is handled by a condo board and their property manager, and owners all share the benefits that come from these factors.

Who does an office condo work for?

Not every business is suited for a condo space. A rapidly growing business, for example, can’t predict the amount of space they may need in the future, and owning their own office space is too permanent of an investment. For businesses that know the approximate size they will need in the future however, an office condo works perfectly. Businesses like an architecture firm or a doctor or dental office are likely to only need a certain amount of office space over many years, so there is little risk of them outgrowing their office condo. With a consistent size requirement and the additional factor of the option to customize your office space as needed, a commercial condo is the perfect fit if your business requires versatility and a set amount of space.

Why should a business owner invest in a condo space?

The independence and financial responsibility that comes from condo ownership carries from residential into commercial condos. Ali Akman, SAMM Holdings’ President, suggests that “the equity gained from owning your own office space is invaluable to the future of your business. It provides a significant boost to the value of your business without the massive investment of an entire office building.” Purchasing an office condo is the same sort of investment that purchasing a residential condo is - a source of equity that remains stable and isn’t subject to the risk of rental increases from landlords. The stability that a commercial condo provides puts them at a high value to business owners.

The Rising Tide of Office Condos by Ali Akman

The ever-changing needs of commercial real estate requires the market to always be adapting. The Toronto commercial real estate market is a dynamic one and perhaps one of the most promising and stable markets globally. A prime example of the way a stable market can change without losing equity is the rising trend of Office Condos, which SAMM Developments is working to supply.

In the face of the impact that COVID-19 has made on both the global and local economy as well as the needs of businesses and employees, office requirements have been in a strange flux. Many office employees are lucky enough to be able to work from home in order to follow social distancing protocols, but there are countless others that still have a need for physical office spaces to greet clients, support patients, and collaborate in person. 

Due to this, while businesses may have less employees physically in office, physical distancing will call for more square footage per employee in order to stay six feet apart. SAMM Developments’ Regal Plaza, which will consist of 150 office condo suites of approximately 800 sq.ft., presents a unique opportunity to accommodate this growing need - by purchasing one suite or combining several suites, allowing buyers to customize how much office space is required for their business. 

“Office condos have already been a popular choice for some time now, especially for dental and medical practices, lawyers, and architects,” says Owner and President of SAMM Developments’ Ali Akman. “Small and medium sized businesses are attracted to the idea of committing to purchase their office space as they are generally not growing or shrinking drastically, so they know their size requirements won’t drastically change over the next few years.” 

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The decision to purchase real estate versus renting is an ongoing deliberation, but purchasing an office condo as opposed to renting provides many benefits. Hard assets such as real estate provide reliable equity, which has always made it a popular investment choice in times of economic uncertainty. And with the added benefit of not worrying about lease changes - considering how many businesses have lost their lease through the COVID-19 pandemic - purchasing property ensures that you are in control of your company’s location in the future.

SAMM Developments facilitates the growing popularity of office condos, providing workspace for small and medium companies that want the stability and equity that comes with owning commercial real estate without the need or financing to purchase an entire building. This changing trend in the GTA commercial real estate market suggests greater demand for office condos in the coming years as many businesses reassess their needs for commercial office space in the wake of COVID-19.

Owning Your Office Space: The Future of Toronto Commercial Real Estate by Ali Akman

In the rapidly expanding Toronto real estate market, trends determine the future of all upcoming developments. With the recent trends showing that business owners are heavily pressing to own their office space instead of risking the changing rates and uncertainty of renting, the market for commercial real estate is facing invigorated growth. Many new projects are in development to support this new demand, though few are as unique as Regal Plaza, a $130 million mixed-use development by SAMM Holdings.

SAMM Holdings’ Regal Plaza mixed-use development will feature office condos.

Location is one of the most important factors in any real estate investment, but more people purchasing office condos proves just how essential it is to choose your location wisely. Adjacent to the Toronto Airport East Holiday Inn at Dixon and Martin Grove by Pearson Airport, SAMM Holdings’ Regal Plaza will include a 204-key Staybridge Suites hotel offering a 24-hour shuttle to the airport for added convenience.

Regal Plaza will also feature 150 condo office suites that are approximately 800 square feet each; however, buyers will have the opportunity to purchase five units to take up an entire floor. With easy 401 access it is remarkably convenient for corporate travellers and condo office owners and their employees to access both the airport and downtown.

This inspired new development will also include a ground-level shopping arcade and an upscale restaurant in addition to commercial office spaces, filling the demand for non-rental office suites while simultaneously providing much-needed amenities for corporate owners and employees. Ali Akman, President of SAMM Holdings, is certain that this project is the most stable future for GTA real estate. “We have already done similar projects in Europe,” Akman said. “I like a mixed-use project because there is a lot of action within the building. It also mitigates the risk for the developer and owner because of the different sectors.”

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With these different sectors as part of a project like Regal Plaza, in combination with the location, these office condos present a unique opportunity for Toronto real estate. Over the years commercial real estate has seen tremendous growth, and Regal Plaza will provide a much-needed addition to the Airport Strip for all those looking to purchase office suites, and put corporate staff in the best possible location close to the downtown core and Mississauga, ideal for locals looking for a short commute as well as those who need to conduct international business.

6 Steps to Success: How to Make Sure Your Commercial Development Thrives by Ali Akman

With the constant surge of the Toronto real estate market, developmental pressure is growing. Taking on a project to develop commercial real estate can change the stakes for any business. Building a new commercial property can be essential to your company’s reputation, growth, and future prospects - even a small build can drastically change your company’s equity! But no matter the size of your project, there are some things you need to consider before diving head-first into the rocky waters of building commercial real estate.

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1 - EVALUATE YOUR NEEDS

The first step for any real estate project is knowing exactly what it is you want to gain. Going into a high-stakes venture without knowing your end goal can sink your project before it’s even started. So before you begin, make sure you know:  

●       What does your company hope to gain from this?

●       How much space does this project require?

●       Where do you want the development to be located?

●       What is the scope of work?

●       How do you want to go about developing it?

●       How many concessions are you willing to make?

Once these questions have been answered, you can begin to see the bigger picture.

2 - HAVE A FINALIZED PLAN

If knowing what you need is the first step, digging into that and breaking it down to the fine details is the second - and arguably most important - step. Having secured financing, a realistic budget and timeline, and informed expectations are essential to your business thriving during the stress of the development project. Instead of straining your resources or employees under unrealistic deadlines or running out of financing and putting your company at risk, make sure to have everything securely planned before beginning the development process.

3 - FAMILIARIZE YOURSELF WITH REGIONAL REGULATIONS

Zoning restrictions and building permits change drastically from region to region. Before starting your project, make sure you understand the requirements for each permit and familiarize yourself with each of them. Don’t risk your real estate investment by overlooking regulations - have the right permits acquired, conduct the right inspections, and follow the regulations set in place in the area you are developing in.

4 - CREATE A STRONG SAFETY NET

It’s never possible to predict problems that may arise. From additional costs to potential complications, there must be flexibility in your timelines, plans, and most importantly, in your budget. Plan to have a contingency budget of approximately 5-10% of your total project costs to ensure that any surprises don’t break the bank.

5 - SECURE THE RIGHT TEAM

Every development project is a complex machine. Every piece has an important part to play, and getting the right parts is an integral part of a successful build. Do your research to find a suitable architect, designer, contractor, and supplier. Find a team that specializes in commercial development, and hire a project manager familiar with GTA real estate to get a good leg-up in this competitive market.