Commercial Financing for Richmond's Industrial, Multi-Family, and Mixed-Use Market.

Richmond's Commercial Property Market

Richmond sits at the intersection of a few distinct commercial real estate markets. The industrial and logistics corridor between Westminster Highway and the airport is one of the tightest industrial markets in Canada, driven by YVR proximity and demand from e-commerce and freight operators. Mixed-use development along No. 3 Road and the Canada Line corridor is active, with the city's Official Community Plan pushing density around the Aberdeen and Bridgeport SkyTrain stations. Multi-family is strong city-wide, particularly purpose-built rental which the province has been incentivizing through density bonuses.

Each of these property types has a different lending landscape. What makes an industrial strata unit in the Crestwood area financeable is different from what makes a 16-unit rental apartment building in Steveston financeable. We work across all of them.

How Commercial Underwriting Actually Works

Commercial mortgage underwriting is fundamentally different from residential. The question isn't primarily "can the applicant service this mortgage from their personal income?" — it's "does the property generate enough income to cover the debt service, with an adequate buffer?"

That buffer is measured by the Debt Service Coverage Ratio (DSCR). Most commercial lenders want a DSCR of at least 1.20 — meaning the property generates 20% more income than needed to cover the mortgage payment and operating costs. Some lenders, particularly for stabilized multi-family assets, will go to 1.10 or even 1.05 on a deal with strong sponsorship.

Key variables that determine what a lender will offer:

• Property type and use — retail, industrial, multi-family, mixed-use, office, and hospitality each have distinct lending programs and risk appetites
• Occupancy and lease terms — long-term leases with creditworthy tenants support higher leverage; vacant or short-term tenancy reduces it
• Location and market — Richmond's industrial vacancy rates and demographic growth support stronger lending than secondary or tertiary markets
• Sponsor strength — your liquidity, net worth, and commercial real estate track record

Down Payment and Leverage

Commercial mortgages generally require 20-35% equity (65-80% LTV). The range is wide because property type matters enormously. A fully occupied, multi-tenant industrial building with long leases can support 75% LTV from a conventional commercial lender. A single-tenant retail unit with a lease expiring in 18 months may only support 60% LTV given the vacancy risk.

CMHC has a Multi-Family Housing commercial insurance program that can support higher LTV ratios (up to 85%) for eligible rental housing — purpose-built rental with 5 or more units. If you're looking at a rental apartment acquisition in Richmond, this program is worth understanding because it meaningfully changes the equity requirement.

Working With Us on a Commercial File

Commercial deals take longer and require more documentation than residential. You'll need a commercial appraisal (typically $3,000-8,000 depending on complexity), a Phase 1 environmental assessment for industrial properties, rent rolls and tenant lease copies for income-producing assets, and your full personal financial statement.

We start by understanding what you're trying to achieve — acquisition, development, refinance, equity release — and match the structure to lenders whose mandates fit the specific asset and transaction size. Commercial lending is not a commodity; the right lender for your deal depends on specifics we learn in the first conversation.