Buying vs Leasing a Commercial, Medical or Retail Condo in Markham

Neeraj Moolchandani is a top real estate agent in Markham, Ontario. Published November 11, 2026 · By Neeraj Moolchandani, REALTOR®, Cofounder of the Kaizen Real Estate Team, eXp Realty, Brokerage

Doctors, dentists, accountants, physiotherapists and small business owners across Markham ask the same question when a lease renewal lands on the desk: should we keep paying rent, or buy our own unit? Our Kaizen Real Estate Team is one of the teams Markham families and business owners call when a big property decision comes up, and the honest answer always starts with your plan, not the property. This guide walks through the real differences so you can have a better conversation with your lender, lawyer and accountant.

Leasing vs Owning: The Side by Side View

Most Markham commercial leases are net leases. You pay base rent plus additional rent, often called TMI, which covers your share of property taxes, maintenance and insurance. When you own a commercial condo, you pay a mortgage, your own property taxes, insurance and a monthly condo fee instead.

How Financing Works for a Commercial Condo

Commercial lending is different from a home mortgage. Lenders look at your business first: your financial statements, how long you have operated, your profit and your credit. Most will also ask for a personal guarantee from the owners.

Many conventional lenders ask for a much larger down payment on commercial property than on a home, so plan for a significant amount of cash. The Business Development Bank of Canada is one alternative. BDC says its commercial real estate loan can finance up to 100% of the project cost depending on the project, with amortization of up to 25 years and interest only payments for up to the first 36 months. BDC also lists eligibility basics such as at least 24 months of revenue and profitability.

• Get a commercial lender or broker involved before you shop, not after.
• Ask how the lender treats a medical, dental or professional practice compared with retail or light industrial use.
• Ask whether an appraisal or an environmental report will be needed, especially for industrial bays.
• Build the purchase so the business can still breathe if revenue dips for a few months.

Zoning and Condo Rules Decide What You Can Do

A unit can look perfect and still be the wrong fit. Two sets of rules matter. The first is zoning. Markham passed a new comprehensive zoning bylaw in 2024, and the City offers an online zoning search to start your review. Uses such as medical office, restaurant, personal service and light industrial are treated differently, and parking rules can matter as much as the use itself.

The second is the condo corporation. The declaration and rules can restrict uses that zoning allows, such as food, odour, noise, clinic hours or signage. Before you firm up, have your lawyer confirm in writing that your exact use is allowed by both.

Costs Beyond the Price

• HST: commercial purchases are generally subject to HST. Many business buyers who are HST registrants handle this through self assessment. Speak with your accountant before you sign so the cash flow is planned.
• Land transfer tax: Ontario land transfer tax applies. Markham does not add a municipal land transfer tax.
• Property tax: commercial property is taxed in a different class from homes, so ask for the current tax bill.
• Condo fees and reserve fund: the same health checks used for residential condos apply. Our guide on evaluating a condo's financial health shows what to look for.
• Fit out: clinics and food uses can need plumbing, ventilation and accessibility work. Price this before you commit.

When Buying Usually Makes Sense

Buying tends to work best for an established business with steady revenue, a clear plan to stay in the same area, and a space that needs a real investment in fit out. A medical or dental practice that will spend heavily on build out is a common example, because that investment stays with an owner instead of a landlord.

Leasing often makes more sense for a newer business, a business that may grow quickly, or one that needs to keep cash available for staff, equipment and marketing. There is no wrong answer. The right answer is the one that fits your plan.

Questions to answer before you decide

1. How long do you realistically plan to stay in this location?
2. What will your lease cost over that same period, including TMI and expected increases?
3. How much cash can the business commit without stretching operations?
4. Is your exact use allowed by zoning and by the condo declaration?
5. If you move, would you sell the unit or lease it to another business?

How Neeraj Helps

Every client conversation starts the same way: what are you trying to achieve, and over what timeline? Many business owners are making a commercial decision while also thinking about their family home, an investment property or a future move. Neeraj helps you see the full picture and connects you with the right lawyer, broker and other professionals so every decision supports the next one.

Questions Markham Clients Ask

Keep Reading

Helpful Pages