Leasing a Commerical Space in Newmarket

15 Sep 2016

1. Before looking at spaces, prepare a budget, secure loans if required and do any needed research such as demographics and location of competition.

2. Understand the full cost of renting. “For leasing, typically it’s a per-square-foot net basis so that’s net to the landlord,” she says. Along with utilities which are usually paid by the tenant, there’s also taxes, maintenance and insurance (TMI) to factor in. For office spaces, which typically include utilities, there are taxes and operating expenses (T&O). “Those are additional costs the landlord incurs to operate a property and they get passed on to the tenant,” says Poirier, adding the numbers are separated because the TMI fluctuates from year to year. HST is also charged on top of both the net rent and TMI. Keep in mind, asking for a free rent period or changes to the space such as paint, new carpeting or putting up walls may also affect your lease rate.

3. Looking to negotiate on costs? Your best bet is the net rent. “That may be negotiable depending on the length of the term you’re offering,” says Poirier. “If you’re going to rent a commercial space for a one-year-term there’s not going to be much room for negotiation.”

This article originally appeared in the Summer 2016 of Your Business magazine. Read past issues here.