The 2026 Value Divide Owners Can’t Ignore.

The industrial market used to be simple.
Square footage plus an address equals value.

2026 blew that logic apart.

Today, your industrial building is either functional and gaining value or obsolete, and heading quietly in the opposite direction. There is no middle lane anymore.

And yet?

The market has drawn a line. Quietly. Industrial owners in Burlington, Oakville, and the GTA should be asking one question going into 2026:

Does my building work for modern users, or does it rely on goodwill and low expectations?

Here’s where that divide shows up and what it means for value, leasing, and demand.

⚡ The New Reality: Functionality Determines 2026 Value

Forget the old valuation playbook.
Age, square footage, and past sales help, but they no longer tell the story.

Industrial tenants in 2026 want three things:

Power, movement, and efficiency.

And they’re willing to pay for buildings that offer them.

Here’s what that means:

Functional Buildings Have…

✔ 600–2000 amps of power (or upgrade potential)
✔ 18’+ clear height
✔ Modern loading + efficient truck flow
✔ Proper ventilation + cooling
✔ Logical column spacing
✔ Upgraded lighting
✔ Strong yard access
✔ Automation-ready infrastructure

These buildings lease.
These buildings attract strong buyers.
These buildings hold value.

Obsolete Buildings Have…

✘ 100 - 200 amps of power “because it worked in 1985”
✘ 16 - 18’ clear (functional… until it isn’t)
✘ Poor HVAC and dated ventilation
✘ Tight truck movement
✘ Overbuilt office nobody wants
✘ Limited modernization potential
✘ Deferred maintenance and old systems

These buildings sit.
These buildings discount.
These buildings struggle to attract quality tenants even in tight markets.

🔍 Why This Value Split Is Happening Now

Two forces collided in 2025 and exposed what already existed.

Industry 4.0 stopped being a buzzword. Automation, robotics, AI-driven logistics, and higher load operations moved from “future planning” to “operating requirement.” That pulled power capacity, ventilation, layout efficiency, and building functionality into the spotlight.

Budget 2025 then changed the math. The 100% immediate expensing rule for M&P buildings made modernization financially strategic, not just operationally necessary.

That combination did something important.

Buyers started prioritizing assets they could upgrade efficiently.
Tenants stopped tolerating buildings that slowed them down.
Landlords with adaptable stock gained leverage.

The deeper drivers sit underneath:
• Electrical infrastructure and upgrade feasibility
• Structural capacity and floor loads
• Ceiling height relative to workflow
• Mechanical systems that can scale
• Layout efficiency and expansion logic
• Municipal constraints and zoning flexibility
• Speed and cost of retrofitting versus replacement

If your building can be modernized without a full rebuild, its value curve improved. If it cannot, the market did not punish it loudly. It simply moved on.

That gap is not closing.

📈 What This Means for Owners

Here’s the part most owners don’t hear enough:

Your value is not based on what your neighbour sold for.
It’s based on what your building can do for today’s tenants.

If your building checks the functionality boxes, congratulations you’re positioned for appreciation.

If it doesn’t, you still have three strategic options:

✔ Upgrade

Add power, improve loading, upgrade HVAC, modernize lighting especially now that Ottawa is funding it.

✔ Reposition

Target different tenant profiles, adjust layout, remove excessive office. Pivot to a different type of tenancy.

✔ Sell before functionality becomes a liability

Buyers still pay strong prices for buildings with upgrade potential but the window won’t stay open forever.

🧠 What This Means for Tenants

Tenants are finally asking the right questions:

“Is this building slowing down our production?”
“Are we overpaying for a space that can’t support our equipment?”
“Is staying here costing us more than moving?”

Buildings built for forklift choreography in the ‘80s can’t support robotics in 2026.

Tenants have choices now.
Landlords who modernize stay competitive.
Landlords who don’t… well, vacancy is expensive.

🏗️ What This Means for Buyers

Buyers are getting smarter too.

They’re looking for:

✔ strong bones
✔ upgradeability
✔ enough power (or capacity to add it)
✔ clear modernization paths
✔ M&P expensing eligibility
✔ long-term functionality

The best deals in 2026 aren’t the cheapest buildings.
They’re the upgrade-ready buildings.

📝 So… Is Your Building Functional or Obsolete?

Ask yourself the big four:

1️⃣ Power:

Does your building meet modern electrical demand?

2️⃣ Loading:

Can trucks access and move efficiently?

3️⃣ Height:

Can tenants use the cubic volume, or only the square footage?

4️⃣ Upgrades:

Can the building be modernized or is it trapped by infrastructure limitations? Can the building be pivoted to another type of tenancy?

Your answers determine your 2026 value strategy.

💬 Functionality IS the New Currency

Industrial real estate didn’t become complicated overnight it simply became honest.

Your building is worth what it can do for a tenant in 2026 and beyond.
Not what it did in 1998.
Not what it sold for in 2021.
Not what an MLS listing claims today.

If you’re unsure whether your building is positioned for appreciation or depreciation, you’re not alone, and you don’t have to guess.

📞 Ready to find out whether your industrial building is functional, obsolete, or primed for modernization?

Let’s talk about a strategy that works.

Built for business. Backed by data. Negotiated with bite.

Client Focused | Solution Driven | Commercial Realtors

Capital Appreciation: 

The Silent Wealth Builder in Commercial Real Estate

You don't have to flip a property to make money on it. Sometimes, just holding it is enough if you know what you're doing.

When most people think about making money in commercial real estate, they think about cash flow. You buy a building, lease it out, and the rent rolls in. Simple enough, right? Yet there is another, quieter way to build wealth and in markets like the GTA, it can be the real moneymaker. It’s called Capital Appreciation, and if you're not factoring it into your investment or leasing strategy, you're leaving long-term gains on the table.

💰 What Is Capital Appreciation?

Capital Appreciation is the increase in the value of a property over time. It's the difference between what you bought it for and what it's worth today or what you could sell it for down the line.

Think of it as the real estate version of compound interest: slow, steady, and seriously powerful when time and location are on your side.

This isn’t about upgrades or renovations (though those help). It’s about market forces; supply and demand, infrastructure growth, zoning changes, or economic and population grown.  In many cases your property is growing in value even while you sleep.

🔍 Where Does It Show Up?

You will see capital appreciation working hard behind the scenes when:

• Land values rise in a growing industrial corridor

• Transit infrastructure (hello, LRT & GO expansions) turns overlooked areas into hot zones

• Vacancy drops and rents climb, boosting buyer demand for income-producing properties

• You invest before the buzz hits and ride the wave up. Even in the GTA, there are still pockets with real upside if you know where to look.
  
  

🏗️ How It Affects Your Investment Strategy

Capital appreciation is a long game which works best when:

• You own vs. lease

• You buy in smart locations with long-term upside potential

• You're willing to  hold for 5, 10, or 15+ years while the market does the heavy lifting

But even if you're not ready to buy yet, appreciation should be part of your leasing strategy too. 

Here's Why: If you're leasing in a building that's appreciating and you don’t have a path to ownership (like an Option to Purchase), you're building someone else's wealth instead of yours.

🧠 Pro Tip: Appreciation Isn't Guaranteed

Here’s where the truth comes in (and where too many salespeople gloss it over): Capital appreciation is not guaranteed. Markets fluctuate. Demand shifts. Zoning can go sideways. And sometimes, you just bought at the peak (in which case you wait a little longer).

That’s why you need to analyze:

• Local market trends

• Planned developments nearby

• Historical value growth

• Risk tolerance and hold time

In short, you want someone in your corner who can read the market and tell you if you're buying a goldmine or a money pit.

💬 Final Word: Make Capital Work for You

Whether you're leasing with an eye to owning, buying your first industrial building, or expanding your portfolio, capital appreciation should always be part of the conversation It’s not flashy, and it’s not instant and it’s one of the biggest drivers of long-term wealth in commercial real estate.

📞 Ready to talk about how to build a portfolio that appreciates over time, not just in theory? Let’s talk strategy that actually works.

📩 [email protected]
🌐 williamsoncommercialrealty.com

Client Focused | Solution Driven | Commercial Realtors

Lease-to-Own in Commercial Real Estate: 

What It Is, Who It’s For, and Why It’s Rare

Most commercial tenants think they only have two choices. Lease the space or buy the building. There is a third path hiding in plain sight: lease-to-own. It’s not common, and it’s definitely not for everyone. Yet under the right circumstances, it can be a smart way to secure ownership without taking the full capital hit of a traditional purchase.

What Is Lease-to-Own?

A lease-to-own (also called lease-option or lease-purchase) lets a tenant lease a commercial property with the option, or sometimes the obligation, to buy it after a set period, usually at a predetermined purchase price.

Think of it as a trial run with a closing date.

Most agreements include:

• Monthly lease payments, sometimes with a portion applied toward the future purchase

• A set purchase price (or a formula to calculate it later)

• A defined option period, usually 1 to 5 years

• Conditions for exercising the option (timely payments, performance benchmarks, etc.)

When Does Lease-to-Own Make Sense?

🔹 For Tenants:

• You’re growing but not ready to buy

• You want to lock in a location while working on financing

• You’re investing in buildouts and want that money to support future ownership

• You’re in a niche or hard-to-replace property

🔹 For Landlords:

• Your property has been sitting vacant

• You want steady rental income now with an exit strategy later

• You’d like to spread out a capital gains hit

• You value a long-term tenant who may eventually become your buyer

Pros and Cons

✅ Advantages for Tenants

• Lower upfront costs than buying outright

• Lock in a future purchase price

• Build equity while you lease

• Test the location before committing fully

✅ Advantages for Landlords

• Reliable rental income

• A built-in, pre-qualified buyer

• Stronger tenant commitment

• Smoother exit strategy in a slow sales market

⚠️ Risks Both Sides Need to Weigh

• Market shifts could make the agreed price too high for the tenant or too low for the landlord

• If the tenant defaults, legal untangling can get messy

• Financing can be challenging for unconventional assets or newer businesses

• These deals require airtight legal agreements and often custom clauses

Bottom line. Put everything in writing.

Is Lease-to-Own Right for You?

The truth. Most commercial deals don’t take this path. But when they do, it’s usually because:

• The landlord wants income now and a clean exit later

• The tenant believes in their growth but needs time to buy

• Both sides are willing to get creative

If that sounds like you, lease-to-own could be more than a compromise. It could be the smartest deal on the table.

👉 Curious if lease-to-own is your golden ticket? Let’s find out before someone else grabs the prize. Vacancy is expensive. My advice isn’t. Call me. Let’s talk strategy before the opportunity slips to someone else.

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works for you.
Built for business. Backed by data. Negotiated with bite.

Client Focused | Solution Driven | Commercial Realtors

Right of First Refusal to Purchase: Your Back Pocket Power Play in Commercial Leasing

Because if the building’s going to sell anyway, you should at least have first dibs.

In commercial real estate, ownership brings control. Leasing? Flexibility. But what if you could have a bit of both? Enter the Right of First Refusal (ROFR) to Purchase, a clause that lets you keep one foot in the leasing world, while holding a key to ownership… just in case the right moment comes along.

🧾 What Is a Right of First Refusal to Purchase?

A Right of First Refusal (ROFR) gives you, the tenant, the right to match an offer a third party makes to purchase the property you're leasing. 

The landlord gets an offer from another buyer → Before accepting, they bring it to you → You get a set period (usually 7–10 days) to decide if you want to match the deal.

It’s not the same as an Option to Purchase (which lets you initiate the buy). A ROFR is reactive; you get the chance if and when the landlord decides to sell.

💡 Why Would You Want One?

Because the landlord won’t wait around to see if you’re emotionally ready to buy when a serious offer comes in.

ROFR protects your business in ways a standard lease can’t:

• Prevents disruption: You don’t get blindsided by a new owner who wants to redevelop, repurpose, or raise rents.

• Buys you time: You don’t have to commit to buying today, but you keep your hat in the ring for later.

• Keeps leverage in your court: Especially if you’ve improved the property or built a customer base tied to the location.

🧠 Who Should Ask for ROFR?

• Tenants leasing strategic or long-term locations

• Businesses making major investments in leasehold improvements

• Anyone considering lease-to-own but not quite ready to buy

• Investors who want flexibility while watching for market timing

In the GTA, where ownership opportunities are tight and industrial/office property values are anything but gentle, having first crack at a building can make all the difference.

🛠️ How It Works in Practice

Here’s what a clean ROFR clause should spell out:

• Trigger event: The landlord must notify you when they receive a bona fide third-party offer they intend to accept.

• Notice period: You’ll usually get 7 - 10 days to exercise your right.

• Terms to match: You must agree to match all material terms of the offer: price, deposit, conditions, closing date.

• Waiver or exercise: If you pass, the landlord can proceed with the sale. If the deal falls through, your ROFR is often reinstated, sometimes its not - this is where the wording in your intital Lease is key.

🚨 Watch Out For…

• Vague or generic language: “Right to match” without detail means very little at a negotiation table.

• Short response windows: 5 business days may not be enough to make a six or seven-figure decision.

• Exceptions that water it down: Some ROFRs exclude family transfers, corporate reorganizations, or sales to affiliated entities, meaning you might never get the chance at all.

👇 The Bottom Line

A Right of First Refusal to Purchase gives you leverage. It’s not flashy, and it doesn’t guarantee ownership and it gives you a real shot when the building your business occupies comes up for sale.

If you’ve already put time, energy, and capital into the space, why wouldn’t you want the first opportunity to buy it?

If you're negotiating a lease or renewing one, ask about adding a ROFR. And for the love of due diligence, don’t just take their word for it. Make sure the clause is tight, specific, and reviewed by someone who negotiates these every day.

(Yes, that would be me.)

Let’s make sure your lease is more than just rent and square footage.
Because the real opportunities are often buried in the fine print.

📩 [email protected]
🌐 williamsoncommercialrealty.com

I don’t do cookie-cutter. I do what works, for you.

Client Focused | Solution Driven | Commercial Realtors

Is Your Industrial Building Obsolete or a Hidden Opportunity?

Industrial real estate is on fire right now. But let’s be honest, not every building is built for today’s tenants. If your ceilings are low, your loading docks only fit a U-Haul, or your truck court feels tighter than a downtown parking garage, you’re probably asking yourself: is my building obsolete?

Here’s the truth. Obsolete doesn’t mean worthless. It means it’s time to rethink.

Why Tenants Swipe Left on Older Buildings

Modern users expect modern functionality. Here’s what usually makes or breaks a deal:

• High clear heights - Tenants want racking space, not just room to walk around.

• Efficient loading - Faster, safer movement of goods.

• Wide turning radiuses - Today’s transport trucks need space to maneuver.

• Upgraded power - Advanced machinery and automation don’t run on old wiring.

If your property falls short, you’re not competing. You’re sitting vacant. And vacancy is the most expensive thing a landlord can own.

How to Turn Outdated Into Opportunity

Too many owners assume that if their building is old, it’s useless. Not true. You have options.

1. Repurpose the Space

Low clear? That might actually be perfect for flex space, a data storage facility, a showroom, or small-bay storage. Not every tenant needs 32-foot ceilings.

2. Target the Right Users

Light manufacturers, local service businesses, and specialized trades often value affordability over height and power. Match your marketing to the industries that benefit most.

3. Upgrade Select Features

Sometimes small fixes such as resurfacing a truck court, boosting lighting, or adding extra power are enough to make an older building competitive without full-scale redevelopment.

Don’t Compete Where You Can’t Win

If you’re chasing the same tenants who want brand-new distribution centres, you’ll always lose. But when you reposition your property strategically, you can turn a so-called problem building into a profitable, cash-flowing asset.

Obsolescence is not the end of the story. It is a sign to adjust your approach.

The Industrial Market Still Wants You

The industrial market in Burlington and across the GTA is still incredibly active. Tenants are searching every day. What they want is function, not frustration.

So ask yourself:

• Am I targeting the right tenants?

• Have I explored alternative uses?

• Would strategic upgrades put my property back in demand?

👉 Stop giving free tours to dust bunnies. Let’s turn your vacancy into opportunity. 

I’m That Commercial Realtor, and I help owners across Burlington and the GTA reposition, lease, or sell industrial properties so they work for today’s market.

Let’s turn your vacancy into opportunity.

📩 [email protected]
🌐 williamsoncommercialrealty.com

Client Focused | Solution Driven | Commercial Realtors

What Is Load Factor in Commercial Leasing?

(And Why You’re Paying for Space You Don’t Actually Use)

If you've ever wondered why you're paying rent on 3,600 square feet when your team is only using 3,000, congrats, you've been introduced to one of commercial real estate’s most overlooked (and overpriced) terms: Load Factor. It sounds harmless enough. But get it wrong, and you could be shelling out thousands for space your business never actually steps foot in.

So, What Is Load Factor?

Load Factor is the ratio that determines how much shared space in a building you’re paying for on top of your actual, usable office or industrial space.

In simpler terms:

🧾 Rentable Square Footage = Usable SF + Your Share of Common Areas

🧮 Load Factor = Rentable SF ÷ Usable SF

Common areas typically include:

• Lobbies

• Hallways

• Washrooms

• Shared kitchens

• Utility rooms

You don’t occupy them, but you help pay for them. Welcome to commercial leasing.

Why It Matters

Most tenants negotiate based on rentable square footage but what you actually use is your usable square footage. If you don’t understand the Load Factor, you’re comparing apples to well, conference rooms.

Here's an example:

Let’s say you lease 3,000 usable SF, and the building has a 20% Load Factor.

🧮 Your rent is now based on 3,600 rentable SF.

That’s 600 square feet of hallway, lobby, and elevator shaft you never asked for but now fund.

And yes, it’s built into your monthly rent, year after year.

Is Load Factor Negotiable?

Sometimes, yes especially in older buildings with inefficient layouts or high vacancy. Other times, no especially in Class A buildings where the amenities are the draw (and you’ll pay for them, whether you use them or not). However, here's the key: Even if you can't negotiate the Load Factor itself, you can use it to compare spaces properly. A space with a lower base rent but a higher load factor might not actually be the better deal.

How to Protect Yourself

✅ Always ask for both usable and rentable SF in proposals.
✅ Compare Load Factors across different buildings.
✅ Run the math before making assumptions.
✅ Use a commercial realtor who can read past the buzzwords. (That’s us.)

Final Thought:

Load Factor isn’t just math, it’s leverage.
If you don’t know what it is, you’re negotiating blind.

📩 Want to break down your lease or compare spaces properly? Let’s run the numbers before your budget gets loaded with things you didn’t sign up for.

Susan Williamson
Commercial Realtor – Williamson Commercial Realty
✉️ [email protected]
🌐 williamsoncommercialrealty.com

I represent you like it's my name on the lease.

Client Focused | Solution Driven | Commercial Realtors