Commercial Fact Sheet
What you need to know: the basics
- The Municipal Property Assessment Corporation (MPAC) values over 161,000 commercial properties in Ontario.
- Commercial properties may have the following characteristics:
- The most common properties types include office buildings, small retail, restaurants, auto dealerships, and large format retail.
- They are multi-purpose buildings that typically include interior finish.
- Special purpose features are limited.
- They can usually be converted to another use without extensive alterations.
How we assess commercial properties
- Depending on the characteristics of the property and the current use, we may use any one of three approaches to value the property.
- We use the cost approach to value many commercial properties to value most commercial properties.
- However, in the GTA where there are an abundance of sales, we use the direct comparison approach to establish current value assessments. Learn more about our approaches to value.
- Occasionally, we may use the income approach to calculate the value of a commercial property.
The Municipal Property Assessment Corporation (MPAC) is an independent, not-for-profit corporation funded by all Ontario municipalities, and is accountable to the Province, municipalities and property owners. Our role is to value and classify all properties in Ontario in compliance with the Assessment Act and regulations set by the Government of Ontario.
- We are the largest assessment jurisdiction in North America, assessing more than five million properties in Ontario, representing $2.96 trillion in property value.
- Our assessments provide the foundation that municipalities use to calculate the property taxes needed to pay for community services.
- Our assessors are trained experts in the field of valuation and apply appraisal industry standards and best practices.
- Our assessments and data have met international standards of accuracy and are relied upon by banks, insurance companies and the real estate industry.