Commercial property and operating businesses in Alberta: what to check first

Working with me on a commercial or business purchase

I act for buyers of commercial property and operating businesses through KO Realty, as I do for homes. Under the RECA Rules, commercial covers income-producing property such as retail, office, industrial and buildings with more than four units, and these deals bring their own checks: leases, zoning, environmental reports and lenders' rules. The analysis tools on this site are open to anyone, client or not.

Buying a business is not buying a building

• Know what is included. Real estate only, business assets only, the business with its premises, the shares of the company, a lease assignment, or a franchise resale — each is a different deal with different risks.
• Revenue is not profit, and profit is not cash. Seller's discretionary earnings include the owner's own pay; if you would hire a manager, take that salary out before you compare returns.
• Investment, job, or both? If the business needs you behind the counter, part of what it earns is your wage. The analysis splits pay for your work from return on your money.
• Leases, licences and permits do not transfer automatically. Landlord consent, franchisor consent and new licences can each stop a sale.
• GST. A sale of commercial real property is generally taxable. A business sale where the buyer acquires all or substantially all of the assets may qualify for the joint section 167 election (CRA form GST44). Confirm with your accountant before you price the deal.

Whether a sale of a business with no land and no lease needs a real estate licence is a question for RECA; most operating businesses include a lease or owned premises, which are real estate.

Three businesses that need their own arithmetic

• Daycares. Revenue comes from enrolled spaces at the parent fee plus operator funding; costs are driven by staff-to-child ratios set by provincial rules. Alberta's program pages say a childcare licence cannot be transferred: an asset sale needs a new licence, and in a share sale ownership changes must be reported. Parent fees moved to a flat rate per day in April 2025, and the federal–provincial agreement runs through 2026, so future funding is a stated risk, not a given.
• Automotive repair. Bays, technicians' productive hours, the effective labour rate and parts margin drive the business. Environmental history (waste oil, solvents) and equipment age belong in the due diligence.
• Gas stations. High fuel sales are not high profit: margin per litre, inside-store margin, card fees and the supply agreement decide it. In Calgary the Fire Department permits storage tanks, and the analysis will not value a station without its environmental reports and tank records.

Where commercial listings come from

The CREA feed this site already displays carries commercial and business listings in the Calgary area — on 6 October 2026, about 410 businesses, 150 retail, 78 industrial and 77 office listings — but none with rent, income or expense figures, and lease listings cannot always be told apart from sales. So every one of them starts as Not enough information to assess until the listing brokerage supplies a rent roll and statements. Other sources — brokerage sites, business marketplaces, receivers and municipal tax sales — are listed with their terms and what it would take to use them, in the source register; none is copied into this site without permission.