Leasing a place of business
When leasing a Commercial Space in Ontario it's importannt to know some basic elements of how commercial leases work. Below are some basic things to know
- Most office, retail and industrial space in Canada is available only through a commercial lease.
- Most commercial lease transactions start with a offer to lease the premises that sets out the most important business terms.
- Most Commercial leases in Canada are typically on a fully net basis, which requires a tenant to pay basic rent plus a proportionate share of the realty taxes, insurance, utility and other maintenance charges for the building.
- In a retail lease, the tenant may also be required to pay a percentage of its sales as “percentage rent”.
Things to do before starting to look for a Commercial Space
Determine your space requirements
- Determine the needs of your business currently and any expansion or contraction that may be required in the coming years. Leases generally have a term of five or ten years, so consider whether you need expansion or contraction rights or a right of first refusal on other space in the building.
Consider the financial obligations
- Determine if the entity doing business in Canada has a sufficient net worth to satisfy the lease obligations or if an indemnity from a related company or other security might be necessary. Many landlords will request guarantees of some type if your business entity does not have sufficient net worth.
Call and Experienced Broker like Alex Prasoulis to Get Started
- Once you have determined your needs and wants and requirements call an experienced Broker like Alex to discuss finding the right property for your business. Are you ready to start your search? Call Alex at 416-856-5408 or email at email@example.com.
Contact Me to Discuss Leasing a Commercial Property
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