Your lease can be one of the most important matters you ever negotiate for your business. In fact, for many business owners in Ontario, the cost of leasing is often their second highest operating cost – second only to their cost of staff.
Commercial leasing is a broad term that governs the relationship between commercial landlords and tenants in Ontario. The Commercial Tenancies Act governs commercial leasing in Ontario – an act that can be quite overwhelming to decipher on your own.
A commercial lease in Ontario is often described in one of two ways; either a gross (or standard) commercial lease, or a net lease. In a gross (or standard) lease, the commercial tenant pays to the landlord a single base rent. In a net lease, the tenant pays a base rent plus additional costs. This usually means that net leases have a lower base rent price, as the tenant can be responsible for a myriad of further costs, depending on whether the lease at hand is a single, double, or triple net lease. These additional costs can include insurance, tax, and maintenance costs.
Whether you are negotiating the terms of a new lease, renewing a lease, or have run into difficulties with your commercial landlord or tenant, Graphene Business Law is here to help. We can further assist you with COVID-19 implications currently affecting commercial leasing in Ontario. You may contact Graphene by filling out the booking tool on our web page graphenebusinesslaw.ca, or sending a direct inquiry to info@graphenebusinesslaw.ca . You may also text us at 647-466-5985.
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This blog post does not constitute legal advice, and does not create a solicitor-client relationship between author and reader. For inquiries, please contact Graphene via the above listed platforms.