Industrial vs Residential Condos
Why Buy Industrial Condos?
There has always been advantages in buying Industrial Condos such as lower maintenance, diversifying your portfolio, less management, commercial landlord rights, tenant stability, longer lease terms, etc. In 2024 and 2025, there are TWO distinct advantages for buying Industrial Condos over Residential Condos, as demonstrated below.
(interest rates coming down within the next couple of years might be the common advantage for both property types)
Industrial vs Residential
RESIDENTIAL CONDO:
Purchase Price: $700,000
Monthly Rental Income: $2,500
Monthly Expenses: $700
(Condo Fees, Property Tax, insurance)
Total Monthly Income: $1,800
INDUSTRIAL CONDO:
Purchase Price: $700,000
Monthly Rental Income: $2,800
(($20psf x 1,700 sf = $34,000) / 12 = $2,833)
Monthly Expenses: $0
(Condo Fees, Tax, Insurance ALL PAID by tenants)
Total Monthly Income: $2,800
2026 Strategy
RESIDENTIAL CONDOS:
Now, we can say with certainty that it will take a couple of years for the current residential condo inventory to clear out. As a result, the chances of any appreciation in residential condos are slim to none in the next couple of years.
INDUSTRIAL CONDOS:
There is still demand for SMALL INDUSTRIAL CONDO UNITS and the demand will remain for the next couple of years. This is due to the lack of supply because the industrial land is used for highrise development. As a result, there is not much in the pipeline coming up to build Small Industrial Condo Units in the urban core. So, there will be typical price appreciation in the next couple of years.
