Commercial Property Tools for Vancouver Owners

How these tools work, and what they leave out

Valuation divides net operating income by a cap rate. The cap-rate ranges are indicative, from brokerage market reports (Avison Young, CBRE and Colliers cap-rate surveys, 2025); a specific building trades on its lease term, tenant covenant, condition and land value, which is why the tool shows a range and lets you set the rate. Pro-forma grows rent and costs separately, reserves a percentage of income for capital items, sells at an exit cap rate on the following year's NOI and solves the internal rate of return from those cash flows; there is no simulated IRR. With financing on, it amortizes a Canadian commercial mortgage and reports the levered IRR and year-one debt-service coverage. Additional rent converts your tax, insurance, CAM and management into the per-square-foot figure a net-lease tenant sees, so your listing quotes the right number. Sell vs hold discounts future rent and a later sale to today's dollars and compares that with net proceeds now. None of the tools model income tax, capital gains or recapture; those can reverse the answer, so run the result past your accountant.

What it costs

In Metro Vancouver, commercial property management fees typically run 3–8% of gross collected rent (published rate cards from Metro Vancouver managers, 2025–26), and leasing commissions are commonly 4–6% of the total lease value or roughly one month's rent per year of term. David's leasing fee is typically the first and last months' rent on the lease, and ongoing management is quoted per property. Selling costs on a small commercial building are commonly 2–4% of price including legal; sales are executed by Lawrence Siccia, REALTOR® (Engel & Völkers), through our sale advisory. GST applies to commercial rent and most commercial sales; PST does not.

How long it takes

Small industrial and retail units in Metro Vancouver commonly lease in one to four months when priced to the market; office takes longer. Lease terms are commonly 3–5 years with 5-year renewal options.

Vancouver specifics

Commercial tenancies in BC fall under the Commercial Tenancy Act (RSBC 1996 c.57), not the Residential Tenancy Branch, so the lease document is the whole relationship: what it says about additional rent, demolition and renewal is what you get. City of Vancouver Class 6 property tax runs about 1.05% of assessed value (2025 general rate; check the current mill rate), which is why tax dominates additional rent downtown. Metro Vancouver industrial availability sits around 3–4% (brokerage market reports, 2025), so industrial trades at the lowest cap rates. Live/work parcels in the City of North Vancouver CD zones and Vancouver I-1/IC zones, like our 1496 Rupert St listing, are valued on a blend of the two uses. This is general information; confirm with a lawyer and accountant.

Related: commercial management fees, lease types in BC, lease expiry playbook, sell or tenant, our portfolio, or contact us.

Frequently asked questions