How are commerical lease costs quoted?
April 13, 2010 10:46 AM Subscribe
How do commercial real estate quotes work in Canada? Are they monthly or annual?
I'm in the very, very early research stages of looking at office space in Toronto and southern Ontario.
Most of the lease prices seem to list a square footage, a cost/sq ft, and sometimes an "additional rent".
See this page from downtown Guelph as an example.
My possibly very stupid question is: that's annual right? $12,000 per month for 1000sq/ft in Guelph (or anywhere) seems, uh, steep.
What is "additional rent?" Is that the commercial real estate term for property taxes and maintenance?
I'm looking forward to AskMe helping me not sound like a total n00b when I speak to agents.
I'm in the very, very early research stages of looking at office space in Toronto and southern Ontario.
Most of the lease prices seem to list a square footage, a cost/sq ft, and sometimes an "additional rent".
See this page from downtown Guelph as an example.
My possibly very stupid question is: that's annual right? $12,000 per month for 1000sq/ft in Guelph (or anywhere) seems, uh, steep.
What is "additional rent?" Is that the commercial real estate term for property taxes and maintenance?
I'm looking forward to AskMe helping me not sound like a total n00b when I speak to agents.
Response by poster: Thanks, valleys. I was worried that I'd have to multiply our cash flow by 12 in order to afford an office. Then I realized that I was probably just wrong about the quote.
Thanks for the info!
posted by generichuman at 11:01 AM on April 13, 2010
Thanks for the info!
posted by generichuman at 11:01 AM on April 13, 2010
Best answer: I should also have said that it's not uncommon for landlords to give tenants various benefits when they sign a lease. Quite often that could be something like 2 months free rent for the start of the lease, assuming that you'll spend some time fitting the place up to your own requirements before you actually occupy the space.
Note also that leases can vary wildly from the very simple to the absurdly complex to the totally amateur to the 'text they copied from a friend's apartment rental place and doesn't make sense for commercial property'....
This is where a lawyer can come in handy - both in the negotiation of rent and lease terms, and in checking what the landlord will try to impose on you as a tenant. Make sure you get what you want without them imposing unreasonable things on you.
My experience is in renting retail space, not offices, but if you have any other questions feel free to email (in profile) me.
posted by valleys at 11:10 AM on April 13, 2010
Note also that leases can vary wildly from the very simple to the absurdly complex to the totally amateur to the 'text they copied from a friend's apartment rental place and doesn't make sense for commercial property'....
This is where a lawyer can come in handy - both in the negotiation of rent and lease terms, and in checking what the landlord will try to impose on you as a tenant. Make sure you get what you want without them imposing unreasonable things on you.
My experience is in renting retail space, not offices, but if you have any other questions feel free to email (in profile) me.
posted by valleys at 11:10 AM on April 13, 2010
This thread is closed to new comments.
And yeah, additional rent usually covers things like maintenance, taxes, snow removal, garbage pickup, exterior lighting, etc. Landlords I deal with give you a statement once a year showing what the additional rent was spent on, and give you a refund (if they didn't use it all) or a bill (if they spent more than expected).
posted by valleys at 10:52 AM on April 13, 2010