Some Key Points to Consider When Entering a Commercial Lease as a Tenant – Part One
By Kormans LLPYou may have started a business recently and are now looking for a location from which you will operate said business.
As you are in the early stages of your business, chances are that the property from which you will operate said business will likely not be owned by you. Instead, you will be looking for a commercial space to lease from which you can operate your business.
Commercial leases usually contain a myriad of legal terms and conditions which if not negotiated thoroughly can lead to payments of thousands of dollars beyond the base rent.
Some of the keys items that should be discussed include but are not limited to whether there is a requirement for an indemnity from the principal(s) of the tenant corporation; what is covered as part of Additional Rent beyond the agreed upon Base Rent; rights to assign the lease; rights to sublet the lease; rights of renewal and extension; right of first refusal on a purchase offer received by the Landlord; insurance requirements and liability; any rent-free fixturing period; tenant-work vs landlord’s work; right to relocate; and much more.
The issues mentioned above are just the tip of the iceberg for negotiations in a commercial lease.
That is why it is vital that prior to signing any commercial lease agreement, to have it reviewed by a lawyer who is well versed in commercial tenancies.
Be on the lookout for a future blog post which will cover some of the above noted items in further detail.
For more information about this topic, please feel free to contact one of our lawyers! Email us at info@kormans.ca or call (905) 270-6660.

Join our newsletter and don’t miss out on a blog post!
Taimoor Qureshi is an Associate Lawyer at Kormans LLP. You can reach Taimoor anytime at tqureshi@kormans.ca.
The information and comments herein are for the general information of the reader and are not intended as advice or opinion to be relied upon in relation to any particular circumstances. For particular application of the law to specific situations, the reader should seek professional advice. Kormans LLP cannot be responsible for the content of other sites. We expressly disclaim all liability with respect to actions taken or actions not taken based on content received from a third party website linked, directly or indirectly, to that of Kormans LLP. The link to another site is not to be construed in any way as an endorsement of the host, the site or the information contained therein, nor is such link to be inferred as an association or affiliation with the host.