Chapter 4

⚡ It Wasn’t a Big Problem — Until It Was

The tenant never called in a panic.
They didn’t threaten to leave.
They just adjusted, adapted… and eventually emailed.
“We’re not sure the building can support our needs long-term.”

This was a small café.
A few appliances. A warm counter. A debit machine.
Everything looked fine on the surface.
But behind the walls, the story was different.

What We Found

• The café unit had a 60-amp panel, original to the building installed in 1989.
• The espresso machine was plugged into a shared circuit with the microwave and lighting.
• No dedicated br /eaker for high draw equipment.
• No surge protection.
• The panel had never been load-tested since occupancy.

The tenant wasn’t being dramatic. The electrical capacity was outdated and it showed:

• Lights flickered.
• Microwaves reset.
• The POS system froze during transactions.

Most Owners Don’t See This Coming

Electrical issues in small commercial units often go unnoticed especially if tenants don’t speak up right away.
But to the tenant, these glitches feel like a warning sign:

• “Is this building safe?”
• “Will it get worse?”
• “Can I trust it to support our business?”

By the time you hear about it, the lease renewal is at risk.

What Owners Can Do Proactively

Bonus:
Ask each tenant: “Do you have any electrical concerns, even minor ones?”
You’ll be surprised what they say.

What This One Fix Cost

This building owner upgraded the panel and added two dedicated circuits.
The job cost: $1,500.

The impact:

• ✔️ No more flickering
• ✔️ No more terminal resets
• ✔️ Tenant stayed
• ✔️ Peace of mind for both sides

And they avoided a $15,000 turnover risk.

The Takeaway

Tenants rarely leave because of rent alone.
They leave because something feels unstable and no one noticed.
Electrical systems are quiet until they fail.
Check them before your tenant decides to walk.
Because if a $10 cord short can put $1,500/month of rent in jeopardy…
It’s not a small problem.
It’s a preventable one.

Final Thought

If you’ve owned your building for more than 10 years…
And you’ve never mapped the electrical panel, load-tested the circuits, or asked tenants about their real usage…
Start this month.

Because it’s not about being perfect.
It’s about being proactive before a $15 fix becomes a $15,000 vacancy.

Want to keep getting tips like this?
You don’t need to sign up, buy anything, or even follow — just keep showing up here.
I’ll keep sharing real problems and the simple tools that help owners like us run smarter buildings.

Imagine this...

You walk into your commercial building on a Monday morning, just like any other. The lights flicker slightly. The hallway smells damp. Your property manager mentions a small leak in the mechanical room, but it “shouldn’t be a big deal.”

Three weeks later, you’re staring at a $12,000 repair bill.
Sound familiar?

If you're a building owner—especially one managing an older property—you know these small surprises add up. But what most people don’t realize is how preventable they are.

The Hidden Cost of “Fix It Later”

I once advised the owner of a 40-year-old retail plaza. On the surface, things looked okay. But a quick inspection revealed:

• HVAC units operating 10+ years past their recommended lifespan
• A deteriorating roof with insulation failure
• Lighting systems pulling excessive energy
• Tenants who were quietly getting frustrated but hadn’t said a word

His words stuck with me:
“No one ever coached me on this. I just fix things when they br /eak.”

He wasn’t careless.
He was just missing a system.

What Reactive Ownership Costs You

Let’s br /eak it down:

Now multiply those risks across every building in your portfolio.

You Need a Coach, Not Just a Contractor

Property managers manage. Contractors repair.
But no one is helping you the owner see the bigger picture.

That’s exactly why we’re launching The Building br /ain.
It’s not just a product. It’s a coaching platform built for commercial building owners like you, especially those dealing with older buildings, rising costs, and inconsistent systems.

What’s Coming:

Here’s what we’re including for our founding members:

• ✅ Monthly checklists to stay ahead of issues
• A 4-week Retrofit Roadmap for aging systems
• A Tenant Engagement Playbook to reduce turnover
• Printable logs and templates for maintenance, repairs, and inspections
• Coaching prompts and video tips to keep you proactive

Coming Soon

We’re getting ready to open access to our first 50 founding members and we’re offering a special early rate to those who join us from the beginning.

Want to be notified when it launches?
Leave a comment below or visit our placeholder site at Buildingbr /ain.ca and hit “Join the Waitlist.”

Final Thought

Most building owners aren’t failing because they’re lazy.
They’re failing because they’re alone.
But not for long.
The Building br /ain is coming.
And it’s going to change how you manage, protect, and grow your property from the inside out.

A New Quarter, A New Vision, Let’s Realign

I hope you had an amazing Canada Day and are entering Q3 with newfound energy. As we step into this pivotal season, it’s time to reframe, realign, and rediscover our vision both professionally and personally.

1. The New Economy Is Shifting Often Unnoticed

Markets are evolving under our radar. Interest rates, consumer habits, and supply chain dynamics can shift subtly but profoundly. Without awareness, opportunities slip away and risks may grow unnoticed.

Action Tip: Reframe your business lens. Conduct mini economic audits. Ask: What’s changing? What’s next?

2. Growth Isn’t Enough — Reframing Is Essential

Growth without a refreshed strategy can be misleading. You can scale but if you're accelerating in the wrong direction, you could lose leverage. Reframing means intentionally adjusting goals, roles, tools, and tactics to align with the current reality.

3. AI Helps but Humanity Guides

AI is an invaluable assistant but it doesn’t replace human bonds. Relationships, intuition, and emotional intelligence define our client experiences. Use AI to analyze, not decide.
Remember: You’re not just serving clients — you’re serving people.

4. Mid-Year Reframe Time

It’s not “too late” to realign. Think of Q3 as your reset button. A chance to:

• Reframe your mission with fresh insights
• Reevaluate your targets defensively and ambitiously
• Recharge your purpose for the rest of the year

5. Let’s Do This Together

If you’re reassessing your strategy, protecting your assets, or navigating hidden economic shifts, I’d love to support you.
Send me an email: investmentgrowexpand@gmail.com
Schedule a Q3 Strategy Session.
Keep momentum. Keep growth. And most importantly, keep refining.

Visit www.rodicas.com to explore resources, listings, and advice tailored just for you.

Building a new frame and reframing strategy to match today’s reality

For the amazing Investors, Business Owners, Landlords, and Tenants,

We’re excited to present our current FOR SALE and FOR LEASE listings across Toronto and Florida.

When inquiring, please reference the listing number (#1, #2, etc.) to ensure quick and accurate assistance.

️ FOR SALE – GTA, ONTARIO AND INTERNATIONAL PROPERTIES

• Dundas and University – Mid to High Rise Redevelopment Opportunity
• University and Queen St W – Mid-Rise, ideal for condo/apartment/hotel development (up to 20 storeys possible)
• GTA – 14, 49, and 100-unit Apartment Buildings
• North York – Yonge and Sheppard Airbnb-ready 9-bedroom property
• Boutique Hotel – Yonge and Bloor
• Branded Hotel – GTA, national brand
• Dominican Republic – 280 Acres Beachfront for luxury resort redevelopment
• Retail Plazas – Toronto, Mississauga, Brampton, Niagara, Pickering, London
• Downtown Toronto – 20,000 SF Commercial Building near TMU
• Leslieville – Queen St E Commercial Building (15,000 SF)
• North York – Bridle Path, 1+ Acre Development Land
• Oakville – Plaza Development Land, build-ready
• Forest Hill – 32-Unit Apartment Redevelopment
• Toronto – 140,000 SF Office Building on 6 Acres
• Brampton – Downtown Convenience Store + Land
• Roselawn Area, Toronto – Land assembly with long-term upside

️ FOR SALE GTA BUSINESSES

• Window and Rail Business – Successful and operating

FLORIDA PROPERTIES – FOR SALE

• Hollywood – Hotel-Licensed 4BR Condo, Airbnb-ready with ocean/intercoastal views
• Miami – 8-Bed Licensed Nursing Home, operational and income-producing

SEEKING FLORIDA PROPERTY INVENTORY

We are actively expanding in Florida. If you have a property to sell or lease, let’s connect — we are actively working with local agents.

FOR LEASE – TORONTO

• 14 McCaul St – Queen and University, Retail/Office 1,000–6,000 SF, near AGO and OCAD
• 66 Gerrard St E – Office 300–1,600 SF
• Queen St E and Broadview – Retail/Office 300–1,200 SF
• University and Dundas – Offices 4,000–12,000 SF
• Dundas St W and Dovercourt – Retail/Office 2,500 SF

WE ARE ACTIVELY SEEKING

• Downtown Toronto Office Buildings: 40,000–100,000 SF
• Etobicoke Industrial Buildings: 7,000–12,000 SF
• Toronto Apartment Buildings: ~50-unit core or transit-connected zones

For brochures, details, or private showings, contact:

Rodica Iliescu
647-204-4663
investmentgrowexpand@gmail.com
rodicas.com
Be sure to mention the listing number when you reach out. Principals only, please.

️ JOIN MY PODCAST

Do you have a topic you would like to discuss, debate, or innovate about our community?
Please write me at investmentgrowexpand@gmail.com and we will present your idea in my podcast studio.
Call me today at 647-204-4663.

1. Real Estate Investment Trusts (REITs)

✅ Why REITs Work for Beginners:

• You can start with as little as $100
• Traded on stock exchanges (just like regular stocks)
• Earn dividends  from the rental income they generate
• No property management or landlord duties required

2. Crowdfunding Platforms

Pros:

• Access to deals you couldn’t afford on your own
• Diversified across multiple projects
• Some platforms offer quarterly dividends

3. House Hacking

Example:

• Buy a duplex with 3.5% down using an FHA loan
• Live in one unit, rent out the other
• Your tenants help cover the mortgage

4. Partner Up (Joint Ventures)

Things to Consider:

• Combine your $10K with a partner's
• Split equity and responsibilities
• Always have a clear legal agreement  in place

5. Wholesaling: Hustle Over Capital

What You’ll Need:

• Strong negotiation skills
• Understanding of local markets
• A growing buyer’s list

6. Build Your Down Payment (Creatively)

Creative Strategies:

• Use an FHA loan  (3.5% down = low barrier to entry)
• HELOC  (Home Equity Line of Credit) if you own a home
• Explore lease-to-own  or seller financing  deals
• Borrow from retirement accounts  (with care and guidance)

Final Thoughts: You Can Start Now

The Power of Tangible Assets in a Digital Age

Data Doesn’t Lie: Real Estate's Track Record

Real Estate by the Numbers (2024):

• ✅ Outperformed stocks in 8 of the last 10 recessions
• ✅ Rental properties deliver 6–10% annual returns, even during economic slowdowns
• ✅ Less volatile  than stocks and crypto, offering steadier growth over time

Why Real Estate Is a Smart Hedge

✅ Inflation Protection

✅ Consistent Cash Flow

✅ Lower Correlation with Stock Markets

Types of Real Estate to Consider

• Single-Family Homes:  Ideal for long-term appreciation and stable tenants.
• Multifamily Units:  Provide consistent income from multiple tenants; lower risk of full vacancy.
• Commercial Real Estate:  Higher returns, but also more complex and cyclical; best for experienced investors.
• Short-Term Rentals (e.g., Airbnb):  High cash flow potential, but dependent on tourism and local regulations.

Tax Benefits: Another Layer of Protection

• Depreciation deductions
• 1031 exchanges  (to defer capital gains taxes)
• Mortgage interest write-offs
• Property expense deductions

Getting Started: Making Real Estate Work for You

Stability in Uncertain Times

Why Rental Properties in Canada Are a Smart Investment

1. Steady Passive Income

Imagine earning money every single month while you sleep. That’s the power of rental properties. By effectively managing your property, you can generate a reliable income stream. After covering expenses like mortgage payments, property taxes, and maintenance, many Canadian landlords enjoy surplus income they can reinvest or save.

2. Property Appreciation

In Canada, real estate values in cities like Vancouver, Toronto, and Ottawa have historically shown consistent growth. Holding onto your property not only generates rental income but also builds equity as property values increase.

Pro Tip: Monitor local markets to understand appreciation trends. For example, cities with growing populations and job markets (e.g., Kitchener-Waterloo) often see higher appreciation rates.

3. Tax Benefits in Canada

Owning rental properties in Canada comes with significant tax advantages. Deductible expenses include:

• Property taxes.
• Mortgage interest (specific to rental properties).
• Maintenance and repairs.
• Utilities (if you cover them).
• Advertising and tenant screening costs.

Bonus: Claim Capital Cost Allowance (CCA) to depreciate the value of your rental property over time, reducing your taxable income.

4. Portfolio Diversification

Real estate in Canada is a tangible, stable asset that balances your investment portfolio. Unlike stocks or bonds, it offers physical value, providing a hedge against economic volatility.

How to Get Started with Rental Properties in Canada

Step 1: Research the Canadian Market

Location is key when investing in rental properties. Here’s what to consider in the Canadian context:

• Job Growth: Cities like Toronto, Vancouver, and Calgary attract renters due to growing job markets.
• Low Vacancy Rates: Areas such as Ottawa and Halifax often have low vacancy rates, making it easier to secure tenants.
• Proximity to Amenities: Properties near transit, schools, and essential services (especially in family-oriented neighborhoods) tend to rent out faster.

Tip: Refer to the Canada Mortgage and Housing Corporation (CMHC) for market insights and trends.

Step 2: Calculate Cash Flow

Ensure your investment is profitable with this formula:

Monthly Rental Income – Expenses = Cash Flow

Example:

• Monthly Rental Income: $2,500
• Monthly Expenses:
• • Mortgage: $1,500
  • Taxes and Insurance: $400
  • Maintenance: $150
• Cash Flow: $2,500 – $2,050 = $450/month

Positive cash flow is critical to building long-term wealth.

Step 3: Screen Tenants Thoroughly

Tenant selection in Canada requires careful attention to provincial laws, such as the Residential Tenancies Act(Ontario) or Residential Tenancies Act (Alberta).

Here’s what to include in your tenant screening process:

• Credit Checks: Use Canadian services like Equifax Canada or TransUnion.
• Employment Verification: Ask for pay stubs or a letter of employment.
• References: Request contacts from previous landlords or employers.

Tips for Managing Your Rental Property

1. Invest in Maintenance
   Canadian weather can be tough on properties. Regularly inspect and maintain heating systems, roofs, and plumbing to avoid costly repairs.
2. Hire a Property Manager
   If you own multiple properties or prefer a hands-off approach, consider hiring a professional property management company. They’ll handle rent collection, maintenance calls, and tenant issues.
3. Build a Reserve Fund
   Unexpected costs like a furnace breakdown during a Canadian winter can strain your budget. Set aside 3–6 months of expenses to stay prepared.

Case Study: From First Property to Portfolio Growth

Emily’s Journey:
Emily purchased her first rental property in Edmonton for $400,000, putting down $80,000 as a down payment. Renting it out at $2,500/month, she earned $450/month in cash flow after expenses. Over five years, the property appreciated to $500,000, adding $100,000 in equity.

Using this equity, Emily purchased a second property, doubling her passive income and building her real estate portfolio.

Don’t Wait—Turn Your Real Estate Goals into Reality

Are you ready to start building your real estate empire in Canada? Whether you’re a first-time buyer or a seasoned investor, I specialize in helping clients find profitable rental properties that fit their goals.

  Book a Free Consultation Today  to discuss your real estate goals and create a plan for success!

Or, call me at 647 204 4663 for immediate assistance.

FAQs About Canadian Rental Property Investments

Q: What’s the best city in Canada for rental properties?
A: Cities like Toronto, Vancouver, and Calgary offer high demand, but emerging markets like Halifax or Kitchener-Waterloo also provide excellent opportunities with lower entry costs.

Q: Can I raise rent every year in Canada?
A: Rent increases are regulated in provinces like Ontario, where annual caps are tied to inflation. Always check your province’s rent control laws.

Q: Are there tax advantages to owning rental properties in Canada?
A: Yes! You can deduct mortgage interest, property taxes, and maintenance costs, among other expenses.

Additional Resources for Canadian Investors

•  Canadian Rental Property ROI Calculator
•  Tenant Screening Checklist for Canadian Landlords
•  Maintenance Guide For Canadian Properties
•  Rental Property Tax Guide For Canada

This graph reveals the powerful trends of key economic indicators from 2014 to 2024, using the most up-to-date data. It vividly illustrates crucial factors like GDP growth, employment rates, unemployment, inflation, and the movement of both the Bank of Canada Overnight Rate and the Prime Rate. You’ll notice the dramatic spike in GDP growth in 2021, shifts in inflation, and significant fluctuations in interest rates, giving you a clear picture of the economic landscape over the past decade.

This graph highlights the dynamic sales trends across key sectors—Total Sales, Industrial Sales, Commercial/Retail Sales, and Office Sales—spanning from 2014 to 2024. The analysis reveals significant fluctuations across market segments, including a notable drop in 2023 and a promising recovery in 2024. Industrial and Commercial/Retail sales showed more variability, while Office sales remained relatively consistent over the years.

Commercial real estate is a vibrant, ever-evolving industry, full of opportunity—even in years like 2015, 2018, and 2023, when the market took a bit of a breather. While these years saw some dips, they also paved the way for growth, innovation, and fresh strategies that can help you navigate future challenges with confidence.

In this blog, we’ll explore what happened during these key years and how the lessons learned from them can set you up for success in today’s market. Let’s dive in!

2015: A Year of Transformation

In 2015, Canada was adapting to a few economic changes. Despite these shifts, the industrial real estate sector performed exceptionally well, thanks to the lower Canadian dollar boosting exports. Industrial leasing grew by 33.4%as companies took advantage of these favorable conditions.

While office and commercial/retail spaces saw some slowing, it wasn’t all bad news. Businesses were simply rethinking their strategies, waiting for the perfect moment to make their move.

The Opportunity in 2015

The slower growth in office and commercial sectors provided a chance for businesses to streamline operations and focus on their core strengths. Forward-thinking investors leveraged this period to position themselves for future growth by tapping into export-driven industries.

To move forward in similar economic environments, real estate investors can focus on:

• Export-driven industries that benefit from a lower Canadian
• Government incentives for job creation, which can spur demand for office

In 2015, the smart players recognized that a quieter market means it’s time to plan and get ready for the next wave of growth

2018: A Year of Adjustments and New Opportunities

By 2018, global trade was experiencing some tension, particularly between the U.S. and Canada, which slowed down certain sectors. But where others saw challenges, many businesses saw opportunity.

In fact, industrial spaces were still in demand, thanks to the growing need for e-commerce and distribution hubs. While the market adjusted to higher interest rates, forward-thinking businesses took advantage of flexible leasing terms and creative financing options.

The Opportunity in 2018

If 2018 taught us anything, it’s that every challenge brings with it new ways to innovate. Flexible leasing terms, such as shorter leases or rent discounts, allowed businesses to continue expanding in a way that made sense for their cash flow.

Public-private partnerships also became a win-win, with governments and businesses teaming up to create infrastructure projects that boosted real estate demand.

In an environment like 2018, flexibility is key. By offering:

• Creative financing solutions (think lease-to-own agreements),
• Public-private partnerships for development projects, and
• Flexible leasing terms to attract cautious businesses,

2023: Embracing Change and Innovation

By the time 2023 rolled around, the commercial real estate market was buzzing with change. The rise of remote work, the explosion of e-commerce, and a renewed focus on flexibility meant that businesses were finding new ways to operate—and investors who embraced these shifts were ahead of the curve.

Sure, inflation and high interest rates posed some challenges, but they also inspired a wave of innovation. With many companies moving towards hybrid workspaces, the demand for flexible, serviced office spaces began to rise.

The Opportunity in 2023

The key lesson from 2023? Adaptability. Businesses that were quick to pivot to hybrid workspaces and e-commerce logistics found themselves on top. Offering:

• Short-term, fully serviced office spaces for hybrid work models,
• Flexible co-working environments, and
• Repurposing commercial spaces for distribution centers and e-commerce hubs,

All became crucial to thriving in the new landscape.

What’s more, creative financing solutions like Vendor Take-Back (VTB)

mortgages and deferred payment leases opened doors for businesses to continue expanding, despite high borrowing costs.

Big Lessons: What Can You Learn From 2015, 2018, and 2023?

Every one of these years brought unique lessons and opportunities to adapt. Here’s what you can take away from these key moments in real estate history:

1. Flexibility Is King

When businesses face uncertainty, offering flexible solutions makes all the difference. Whether it’s shorter lease terms, rent discounts, or shared workspaces, the ability to adapt to a company’s needs will set you apart.

2. Tap Into Emerging Trends

Remote work, e-commerce, and hybrid office models are here to stay. By positioning yourself at the forefront of these trends, you can attract tenants and investors looking for the future of workspaces and logistics hubs.

3. Creativity Pays Off

In challenging markets, creative financing can open doors that might otherwise remain closed. Think outside the box with VTB mortgages, lease-to-own options, and deferred payments to help businesses continue growing.

4. Invest in Green and Sustainable Buildings

Today’s tenants want more than just office space—they want eco-friendly, energy-efficient environments that reflect their values. Offering green buildings and LEED certifications could be your ticket to attracting top-tier businesses.

Looking to the Future: What’s Next?

The future of commercial real estate is bright. From embracing sustainability to reimagining office spaces for a hybrid workforce, the opportunities are endless for those willing to adapt and innovate.

The key is to stay ahead of the curve. By focusing on:

• Flexible workspaces and short-term leasing options,
• E-commerce growth and the demand for distribution centers,
• Green buildings and energy-efficient spaces,

You’ll be well-positioned for success, no matter what the market looks like.

Final Thoughts: Thriving in an Ever-Changing Market

If there’s one thing we’ve learned from 2015, 2018, and 2023, it’s that challenges often bring the greatest opportunities. Whether you’re navigating economic uncertainty, rising interest rates, or changing work trends, the commercial real estate market is full of potential for those willing to adapt and innovate.

By embracing flexibility, tapping into emerging trends, and offering creative solutions, you can ensure that your commercial real estate investments stay strong—even in the most unpredictable markets.

So, keep your eyes on the future and stay flexible, creative, and adaptable. The best is yet to come.

Final Thoughts: Let’s Take Your Commercial Real Estate to the Next Level!

Commercial real estate is evolving faster than ever before. Whether you’re excited about eco- friendly office spaces, flexible work environments, or e-commerce logistics hubs, the future is full of opportunities. The only question is—how will you make the most of it?

Here’s your chance to jump into the action and position yourself for success. Don’t just watch the market shift—be a part of it!

Your Turn: Which commercial real estate trend excites you the most? Comment below or send me a message, and let’s chat about how you can take advantage of these booming opportunities. Whether it’s investing in sustainable buildings or capitalizing on the e-commerce wave, I’m here to help you every step of the way!

And don’t forget to share this blog with others in your network. Let’s build something amazing together! Originally Published: October 2, 2024

Let’s Build Something Extraordinary Together

I'm Rodica Iliescu, a Commercial Real Estate Expert serving the vibrant Greater Toronto Area. Whether you’re looking for insights on Leasing, Acquisition, or Real Estate Management, I specialize in helping clients unlock potential in the world

of retail, office, industrial, and multi-use properties.

Join the Conversation!

Want to dive into the latest real estate trends, explore innovative ideas, or discover ways to positively impact our community? Tune into my podcast studio, where we cover exciting real estate topics that matter most to you.

Let’s Connect!

Email: investmentgrowexpand@gmail.com

Direct: 647-204-4663

Explore my website: rodicas.com

Follow me on Facebook for real-time updates and opportunities!

Ready to Grow, Expand, and Innovate? Let’s take your real estate ventures to the next level. I’m excited to work with you!

The data for this analysis was sourced from the first page of the Q1 publications of the Commercial Realty Watch reports, written by the Toronto Real Estate Board (TREB). Each Q1 report from 2014 to 2024 provided key insights into Toronto’s commercial real estate sectors, covering Total Sales, Industrial Sales, Commercial/Retail Sales, and Office Sales. Metrics such as square footage leased, number of sales, and average lease rates were extracted. Additionally, the reports offered valuable information on broader economic indicators like GDP growth, employment trends, and inflation, which helped illustrate the overall economic environment and its impact on the real estate market. By analyzing these first-page Q1 data points, we captured a clear picture of the trends and market shifts that have shaped the Toronto commercial real estate sector over the past decade.