Guide
Buying a commercial property in BC, step by step
From deciding what you need to getting the keys, in the order it usually happens, with the places deals tend to go wrong.
Buying a commercial building isn't like buying a house. There's no standard residential form doing the heavy lifting, the seller's numbers need testing, and the building's income, zoning and environmental history can matter as much as the bricks. Here's the order I'd work through it in.
1. Decide why you're buying
Buyers buy for a handful of reasons: to house their own business, to earn income, to grow value through improvements or redevelopment, or to place capital somewhere it'll hold. Each reason points at a different property and a different way of judging it. An Owner-user cares about fit and occupancy cost.
An investor cares about Net operating income (NOI), lease terms and Rollover risk. A redeveloper cares about Highest and best use and the Zoning bylaw.
Write your criteria down: use, size, location, budget range, timeline and what you'll do if the right property doesn't show up.
2. Get your financing conversation started early
Talk to your own bank's commercial banker before you shop. Ask how they size loans (Loan-to-value (LTV), Debt service coverage ratio (DSCR), sometimes Debt yield), what documents they need, how long approval takes and what an appraisal and environmental report will need to show.
The guide on financing a commercial property goes deeper.
3. Understand who's representing whom
The BC Financial Services Authority (BCFSA) regulates real estate services in BC. In BC, a licensee must tell you in writing who they represent before they give you services. Read the BCFSA: disclosure guidelines and BCFSA's BCFSA: agency guidelines. If you're not represented, the licensee you're dealing with may be working only for the seller.
4. Screen properties properly
Ask for the rent roll, leases, operating statements, property tax notices and any reports. Do a first-pass value check using the capitalisation rate (cap rate) and Price per square foot, then rebuild NOI yourself.
Check the zoning and the Official Community Plan (OCP) designation, the BC Assessment record and the title.
5. Write the offer
Most commercial deals in BC are written on a commercial contract of purchase and sale, sometimes after a Letter of intent (LOI).
The key parts are price, Deposit, Subject clauses, the due diligence period, the Completion date, what's included and how Goods and Services Tax (GST) is handled. Terms can be worth more than price: a longer due diligence window or the right documents can save you from a bad building.
6. Do your due diligence
Use the subject period to check everything that matters: title, leases, financials, building condition, environmental, zoning, permits, taxes and insurance. The due diligence checklist lists it all. Don't remove subjects until you're satisfied.
7. Remove subjects
Subject removal turns the deal firm. After that, your deposit is at real risk if you don't close. Get your lawyer and lender to confirm they're ready before you sign.
8. Close
Your lawyer handles the transfer at the Land Title and Survey Authority of BC, the Property Transfer Tax (PTT) return and the adjustments. GST on commercial property is often self-assessed by a registered buyer; confirm with your accountant. Collect keys, codes, warranties and tenant notices.
Common mistakes
- Trusting the seller's NOI without rebuilding it.
- Short subject periods that don't fit the reports you need.
- Forgetting PTT, GST and closing costs in the budget.
- Assuming zoning allows your use.
- Removing subjects before financing is confirmed in writing.
Questions to ask before you sign
- What exactly am I buying: land, building, equipment, leases?
- What's the real NOI, and what's missing from it?
- What could stop my lender from funding?
- What does the zoning allow, today and in future?
- What happens to my deposit if something goes wrong?
Tax names used here: Harmonized Sales Tax (HST). The Canada Revenue Agency (CRA) handles federal tax. Sources: Property transfer tax (Government of BC), CRA GST/HST Memorandum 19.4.1, Land Title and Survey Authority of BC, Real Estate Services Act (BC Laws).
More terms you may meet
Short definitions, each with BC context and official sources.
Due diligence · Title search · Land Title Office / LTSA · Freehold · Fee simple · Leasehold · Right of way · Offering memorandum (OM) · Call for offers · Conduct of sale · Builders' lien · Holdback · Statutory declaration · Material latent defect · Buyer's agent · Agency · Real Estate Services Act (RESA) · Air space parcel · Bare land strata · Industrial strata
Related on this site: Buying commercial property in Vancouver · How a commercial sale works · Subject clauses
Last reviewed Oct 28, 2026. General information only, not legal, tax or financial advice. Any scenarios are hypothetical.
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.