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 binding offer to lease that sets out the most important business terms; a non-binding letter of intent could also be used for this purpose, although it is less common.
- 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
DETERMINE YOUR SPACE REQUIREMENTS
- 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.
FIND A REAL ESTATE BROKER IN CANADA
- Consider leveraging your business relationship with your local real estate broker, if any, to see if they have relationships with a broker located in Canada, or consult local advisors for recommendations — a local broker can provide invaluable information on local market conditions and rental rates.
Canada Company Registration
Company Formations Canada offers fast and easy company registration in Canada for non-Canadian residents and foreign companies wishing to operate and do business in Canada.
Register a new company in Canada as a non-Canadian resident
Register a foreign company in Canada
Canada Registered agent services for foreign companies and non-Canadian residents.
Canada Nominee director services for foreign companies and non-Canadian residents.
Shared from: Osler, Hoskin & Harcourt llp Publication