With COVID-19 and all of Ontario's lockdowns, it's estimated that over 25,000 businesses across the province have permanently closed.

As an investor, this may may have you reconsider where to invest your money. However, there are still some sectors that are booming and reasons to invest in commercial real estate. Here are 5 reasons to invest in commercial real estate in 2021.

Increase in office space

Most offices have implemented work from home measures over this past year. As offices start to open again, they will have to do so with stronger safety measures in place. Businesses will need more office space, as workstations will need to be more spread out than before the pandemic. These spaces will also need to be refashioned to allow more interpersonal interactions rather than individual worksations, as many workers have already created more productive personal workspaces in their homes. With hybrid work-from-home and work-in-office models expected to rise, companies will be seeking out newer and larger office spaces to accommodate the changing needs post-pandemic. 

Repurposing of spaces

Small retail and hospitality businesses have taken the biggest hit since the pandemic started. Some investors and developers are already planning to repurpose these vacant spaces. This could mean converting them into residential, multiuse, or live-work spaces. Investing in commercial real estate now can be useful if you're keeping up with shifting trends in the use of public spaces, allowing you to set yourself up for greater success in the future. 

Tax Benefits

There are a few tax deductions you get when owning commercial real estate. First, there is depreciation, which will reduce your tax burden every year. There are also many things that are deductible when you own commercial real estate. As an individual, if your commercial space is vacant and rental expenses are greater than your net rental income, the loss can be deductible against other sources of income. 

Lots of opportunities

With the current number of vacant commercial buildings, there is currently a lot to choose from if you're ready to invest in commercial properties. This means that you may be able to find a property at a location that wouldn't have been available prior to the pandemic. The location of your commercial property is an important factor in determining the rental rate of your commercial property, take advantage of the options currently available. 

Changing face of commercial spaces

There is one sector of commercial real estate that has actually thrived through COVID-19: warehouses. Industrial properties are on the rise to accommodate the growth in online shopping and delivery. E-commerce in Canada continues to be on the rise, so investing in warehouse spaces is a good idea in 2021.