How to Sell Commercial Property in Oakville: Two Planning Frameworks, Employment Lands and Buyers

Selling commercial property in Oakville depends on a feature that most other Halton municipalities do not share in the same way: the town is governed by two different sets of policies, and which one applies to your property determines what a buyer can do with it. The Livable Oakville Plan applies to most of the town, while the North Oakville East and North Oakville West secondary plans apply to a large newer area with its own designations, including employment districts. On top of that, the Town is reviewing its employment areas, and Halton Region’s planning role has ended. This guide is for owners of industrial, office, retail and land holdings in Oakville. It explains how the two frameworks differ, what each means for a seller, and how to prepare. For the general sale process, see how to sell commercial property in Ontario.

Two Frameworks: Livable Oakville and North Oakville

According to the Town of Oakville, the Livable Oakville Plan, the Town’s official plan, applies to all lands in the town except the North Oakville East and North Oakville West secondary plan areas. The North Oakville secondary plans are part of the Town’s 2006 official plan and were designed to allow higher-density urban development on lands outside the natural heritage and open space system. The Town has said it is an objective to bring the lands subject to the North Oakville secondary plans into the Livable Oakville Plan, so the framework may change over time.

The first task for any seller is to establish which framework governs the property, and then to confirm the specific designation and zoning in writing with the Town.

Employment Lands in the Two Frameworks

• In the Livable Oakville Plan, the Town’s employment area designations include Office Employment, Business Employment, Industrial and Business Commercial.
• In the North Oakville East and West secondary plans, employment lands are designated Employment District. According to the Town, these lands are intended to protect for and establish a range of development opportunities for employment-generating industrial, office and service employment uses. For North Oakville East, the Town has referred to a target of approximately 300 net hectares of employment land and 16,500 jobs at capacity.

What this means for a seller: the designation sets what uses a buyer can rely on, and the two frameworks use different terms, so a buyer’s planner will want to know exactly which one applies and what it permits, including any limits on outside storage or truck activity.

The Employment Areas Review

The Town has been carrying out an Employment Areas Review to implement new provincial direction and to plan for growth to 2051. It applies to employment lands in both frameworks. If your property is in or near an employment area, check the status of that review, because policy changes could affect permitted uses and how buyers value the property. Sellers should not assume that today’s designation is the last word, and buyers will ask.

Halton Region’s Changed Role

According to Halton Region, as of July 1, 2024 the Region became an upper-tier municipality without land use planning responsibilities, and the Halton Regional Official Plan is deemed to be an official plan of each local municipality, including Oakville, until it is revoked or amended. Ask the Town how the Regional Plan applies to your property.

What It Means by Property Type

• Industrial and business employment buildings: buyers are mainly owner-users and industrial investors. Have specifications, leases, permitted uses and any policy changes ready. See how to value an industrial building and the industrial due diligence checklist.
• Office and medical office: value depends on leases, rollover and leasing costs. See how office leases affect property value.
• Retail and mixed-use: value depends on tenant quality and lease terms. See how tenant quality affects retail plaza value.
• Land and redevelopment sites: value depends on what the applicable plan permits and on approvals, servicing and site conditions. See how to value commercial land in Ontario. Oakville includes creek valleys and natural areas, so conservation authority regulation under O. Reg. 41/24 and natural heritage constraints may reduce the buildable area of some sites.

Preparing to Sell in Oakville

• Get planning status in writing: which plan applies, the designation and zoning, and any pending policy changes from the Employment Areas Review.
• Assemble the property file: leases and rent roll, operating statements, surveys, site plans, permits and work orders. See the due diligence checklist.
• Know your environmental position: lenders commonly want a Phase I environmental site assessment prepared to CSA Z768.
• Choose how to market it: see on-market versus off-market sales.
• Plan for tax and costs: Ontario land transfer tax is generally paid by the purchaser but shapes what buyers can offer, and HST may apply. Speak with your accountant and lawyer before listing.

Mistakes That Are Specific to Oakville

• Assuming the Livable Oakville Plan governs a property that is in a North Oakville secondary plan area, or the reverse.
• Marketing employment land without confirming the designation and what it allows.
• Ignoring the Employment Areas Review when your property is in or near employment lands.
• Overlooking conservation authority or natural heritage constraints on sites near creeks and natural areas.
• Relying on Halton Region for planning information after July 1, 2024.

Frequently Asked Questions

What is the Livable Oakville Plan?

The Town of Oakville’s official plan, which applies to the town except the North Oakville East and West secondary plan areas.

What are the North Oakville secondary plans?

Plans within the Town’s 2006 official plan that govern a large newer area of northern Oakville, with their own designations, including Employment District.

What is the Employment Areas Review?

A Town review of its employment areas to implement provincial direction and plan for growth to 2051.

Who do I ask about zoning and planning?

The Town of Oakville’s planning staff, since Halton Region no longer has planning responsibilities.

Do I need an environmental report to sell?

Not always, but buyers and lenders often require one for industrial and older commercial properties.

Who pays land transfer tax?

The purchaser generally pays Ontario land transfer tax.

Conclusion

Selling commercial property in Oakville begins with establishing which of the town’s two planning frameworks governs your property, then confirming the designation, zoning and any pending changes in writing. Owners who do this, and who prepare the property file in advance, give buyers what they need to price with confidence. If you are considering selling a commercial property in Oakville, a property-specific valuation and market strategy can help you understand your options before entering the market.

Sources and Further Reading

• Town of Oakville: Livable Oakville Plan
• Town of Oakville: North Oakville Secondary Plans
• Town of Oakville: Employment Areas Review
• Halton Region: Regional Official Plan
• Government of Ontario: O. Reg. 41/24, Prohibited Activities, Exemptions and Permits
• Government of Ontario: Calculating land transfer tax

This article is general information and is not legal, tax, accounting, planning or environmental advice. Consult qualified professionals about your specific property and transaction.