Canmore-based lawyer Austin Ward sat down with Don Blackett, KC, a commercial real estate lawyer serving the Bow Valley since 2014, to tackle some of the most common legal questions buyers, investors and lenders face when navigating real estate transactions in the region.
What should buyers know before purchasing commercial property in the Bow Valley?
The Bow Valley has distinct zoning regulations, environmental considerations, and land-use restrictions that can significantly impact commercial real estate transactions. Given the region’s proximity to protected parklands and wildlife corridors, buyers must conduct due diligence on municipal zoning bylaws, development constraints, and potential business restrictions. For example, Banff’s commercial properties are leasehold, meaning buyers must adhere to Parks Canada regulations, while Canmore has specific zoning bylaws that restrict short-term rentals and certain business activities.
What are the key legal differences between leasing and owning commercial property?
Leasing commercial space offers flexibility, which can be advantageous for seasonal businesses reliant on tourism, but it also comes with obligations such as maintenance responsibilities, rent escalation clauses, and renewal conditions. Owning commercial property provides long-term stability and investment potential but requires adherence to municipal regulations and environmental assessments. Businesses in hospitality and tourism should review leasing agreements carefully to ensure compliance with operational needs and local business laws.
What should investors consider when developing commercial property?
Investors and developers must be aware of environmental regulations, municipal growth policies, and required approvals. Development permits, zoning variances, and environmental impact assessments are often necessary due to the Bow Valley’s protected lands. Additionally, commercial real estate in the region is in high demand, and municipal approval processes can be lengthy. Consulting a lawyer early in the process can help streamline approvals and ensure compliance with local development laws.
What are common pitfalls in commercial lease agreements?
Commercial lease agreements can be complex due to high property demand and strict municipal regulations. Common issues include unclear maintenance obligations, rent escalation clauses tied to seasonal fluctuations, and limitations on signage or renovations. Businesses should also be aware of exclusive use provisions, which may limit competition within a shared commercial space.
Do I need a lawyer for a commercial real estate transaction?
Yes. The complexity of Bow Valley commercial real estate - whether due to environmental restrictions, leasehold ownership in Banff, or local municipal bylaws - makes legal guidance essential. A lawyer ensures compliance with zoning laws, environmental regulations, and contract terms while conducting title searches, reviewing financing agreements, and mitigating potential legal risks.
