What a commercial strata unit is
A commercial strata unit is a strata lot used for business: an industrial bay, an office suite, a retail unit at the base of a residential tower, or a flex unit in a business park. The owner holds title to the lot and a share of the common property through the strata corporation, and the whole arrangement is governed by BC's Strata Property Act and Strata Property Regulation, the same law that applies to residential condos.
The Act distinguishes residential from nonresidential strata lots in several places that matter to commercial owners:
- Sections. A strata corporation may have sections to represent the different interests of residential and nonresidential owners, or of nonresidential owners who use their lots for significantly different purposes (s. 191). Sections can have their own bylaws and expenses (ss. 195 and 197).
- Unit entitlement. For a nonresidential lot, unit entitlement (which drives each owner's share of common expenses) is either the lot's total area in square metres as determined by a BC land surveyor, a whole number that is the same for all nonresidential lots, or a number approved by the Superintendent of Real Estate. In a plan with both residential and nonresidential lots, the Superintendent must approve the schedule as fairly distributing expenses between the two groups (s. 246).
- Bylaws. Use restrictions, signage, hours, loading, noise and parking rules come from the bylaws and any section bylaws. They bind owners and tenants, so a buyer should read them against the intended use.
- Rentals. Since the 2022 amendments, section 141 says a strata corporation must not screen tenants, require approval of tenants or otherwise restrict the rental of a strata lot. Bylaws on use still matter: the strata can fine a tenant who contravenes a bylaw or rule (s. 130).
Strata fees, special levies and the contingency reserve fund
| Item | Current rule | Why a commercial buyer cares |
|---|---|---|
| Contingency reserve fund (CRF) contributions | Since November 1, 2023, the annual contribution must be at least 10% of the amount budgeted for the operating fund, set after considering the latest depreciation report (Province of BC; Regulation s. 6.1) | A thin reserve points to future levies or fee increases |
| Spending from the CRF | Generally a 3/4 vote; a majority vote is enough for a depreciation report, work the depreciation report recommends, and EV charging infrastructure (Province of BC) | Affects how easily owners can fund repairs without a levy |
| Special levies | Approved by a 3/4 vote if shared by unit entitlement, or unanimously if shared another way (s. 108) | Can be large in older buildings with deferred maintenance |
| Levy on sale | If a levy is approved before completion, the seller owes instalments due before the conveyance date and the buyer owes those due on or after it (s. 109) | Address approved and proposed levies expressly in the contract, with a lawyer's help |
Depreciation reports and electrical planning reports: 2023–2024 changes
The Province tightened strata planning rules in regulations that took effect in stages (BC Government news release; Province of BC):
- Five-year cycle, no more waivers. From July 1, 2024, strata corporations with five or more lots must obtain a depreciation report at least every five years and can no longer defer one by an annual 3/4 vote. Corporations with four or fewer lots are exempt.
- Catch-up deadlines. Stratas without a current report had until July 1, 2026 in Metro Vancouver, the Fraser Valley and the Capital Regional District, and have until July 1, 2027 everywhere else in BC, including the Okanagan.
- Qualified preparers. From July 1, 2025, reports must be prepared by designated professionals, including engineers, architects, applied science technologists, accredited appraisers, certified reserve planners and quantity surveyors.
- Developer contribution. From July 1, 2027, developers of new strata corporations with five or more lots must contribute toward the first depreciation report: at least $5,000 plus $200 per lot, to a maximum of $30,000.
- Electrical planning reports. Separately, existing strata corporations (established on or before December 31, 2023) must obtain an electrical planning report by December 31, 2026 if located in Metro Vancouver, the Fraser Valley or the Capital Regional District, and by December 31, 2028 elsewhere; plans with fewer than five lots on December 31, 2023 are exempt (Regulation ss. 5.7–5.8).
For a buyer, the depreciation report is the best single document for forecasting future costs: it includes a physical inventory of common property, a 30-year financial forecast and three funding models for the reserve (Province of BC). Read the funding model the strata actually adopted, not just the recommended one.
The Form B Information Certificate
The Form B is the strata corporation's official snapshot of a lot. On request from an owner, a buyer or someone they authorize, the strata must provide it within one week (s. 59). The maximum fee is $35 plus copying costs of up to 25 cents a page (Regulation s. 4.4). It must disclose, among other things:
- Fees and arrearsThe monthly strata fees and any amount the owner owes the strata.
- Approved special leviesAny future levy payments already approved, and the payment dates.
- Budget overrunsAny amount by which current-year expenses are expected to exceed the budget.
- CRF balanceThe contingency reserve fund balance, less expenditures already approved.
- Pending resolutions and bylaw changesUnfiled bylaw amendments, unfiled 3/4 or unanimous resolutions, and notices for resolutions not yet voted on.
- Legal proceedings and work ordersCourt, arbitration and Civil Resolution Tribunal proceedings, judgments, and outstanding notices or work orders.
- Parking, storage and insuranceAllocated parking stalls and storage lockers, and a summary of insurance coverage.
The rules, the current budget and the most recent depreciation report must be attached. Information in the certificate binds the strata corporation in dealings with someone who relied on it reasonably, with an exception for insurance information obtained from the strata's insurer or agent (s. 59).
The industrial strata trend in BC
Industrial strata means individual bays sold to owner-users and investors rather than leased. Recent reports on two BC markets show how that segment has shifted:
- Metro Vancouver. Avison Young reported that speculative and strata development fell from an average of 63% of total square footage starts in 2025 to 22% in Q1 2026, as build-to-suit projects led new construction (Avison Young, Q1 2026). In Q4 2025, 74% of the strata and speculative lease product delivered was pre-leased or pre-sold, against an average of 55% pre-commitment over the previous three quarters (Avison Young, Q4 2025).
- Central Okanagan. In July 2025, William Wright Commercial said more than 600,000 square feet of new industrial strata had been built in the Central Okanagan over the previous 24 months, called conditions one of the best buyers' markets the region had seen in decades, and noted developers offering pricing incentives, with one West Kelowna project offering vendor financing and lower deposit structures (Okanagan Edge).
Market conditions change quarter to quarter. See the industrial real estate guide and the 2026 BC market overview for broader context.
Buying a pre-sale unit
When a developer markets strata lots before completion, the Real Estate Development Marketing Act generally requires a disclosure statement, and a buyer entitled to one may rescind the purchase agreement by written notice within 7 days after the later of signing and acknowledging receipt of the disclosure statement (REDMA, s. 21). Read the disclosure statement for the proposed bylaws, budget, unit entitlement and any section structure before that window closes.
Financing and leasing a commercial strata unit
Buyers of commercial strata units generally deal with a lender's commercial lending team; confirm this at the outset, because terms differ from residential mortgages. BDC, for example, offers owner-occupier commercial real estate loans of up to 100% of project cost with up to 25 years to repay, subject to its eligibility criteria (BDC). Ask each lender early which strata documents it will review and whether the bylaws, the depreciation report or a pending levy could affect approval. See financing commercial property in BC.
Investors leasing a unit should make sure the lease requires the tenant to comply with the strata bylaws and rules, and allocates strata fees, special levies and utilities clearly between owner and tenant. See commercial lease types.
What buyers check
- Permitted useMunicipal zoning and the strata bylaws both allow the intended business, including any hazardous materials, noise or hours.
- Form B and attachmentsFees, approved levies, CRF balance, legal proceedings and pending resolutions.
- MinutesAt least two years of council and general meeting minutes, for disputes and repair discussions that have not yet reached a vote.
- Depreciation reportTiming of major replacements (roof, paving, overhead doors, fire systems) and the funding model adopted.
- InsuranceThe strata's coverage and deductibles, and what the owner must insure.
- Physical fitClear height, loading, power supply, floor load and parking allocated to the lot.
- Environmental and building conditionEspecially for older or industrial stock; see the sister site's environmental and building due diligence guide.
- Tax on purchaseGST and property transfer tax can apply to commercial strata; see taxes on commercial property transactions in BC and confirm with an accountant.
How Commercial Real Estate Group can help
Sean Phillips, REALTOR® with Coldwell Banker Executives Realty, works with buyers, sellers and landlords of commercial and industrial strata units across BC, including reviewing strata documents alongside the client's lawyer. See buying commercial property or book a free 10-minute Zoom intro.