The ABC’s of Acquiring Commercial Property in Toronto
How is Commercial Real Estate Priced?
Often referred to as retail space, leasing costs for commercial space in Toronto are typically expressed per square foot, and billed on a per annum basis.
There are two main components to the rent paid by a tenant in a commercial property. One is the “net” or “basic” rent, which provides a return on investment to the landlord on its real estate asset. The other is the “T.M.I,” which stands for Taxes, Maintenance and building Insurance. Gross rent is the sum of the net rent and the T.M.I. Any costs related to utilities or other services, such as garbage removal and janitorial services, are usually charged in addition to the gross rent. Confirmation of all costs is always recommended for tenants of commercial properties, whether those commercial properties were leased or sold.
Commercial Space for Lease or Sale in Toronto
In acquiring a Toronto commercial property, most prospective tenants seek to lease a space, as opposed to making a purchase. The reason for this preference is that the sale of commercial property space in Toronto (and in many cities around the world) usually requires a large capital investment to complete. If not for reasons of price, commercial space is often leased as opposed to purchased due to the lack of availability. As is common in hot real estate markets, there is often a lack of suitable commercial properties available for sale.
The length of the lease term for commercial properties is often negotiable. However, in the Greater Toronto Area a lease term of five to ten years is the most common period, with the tenant often being given renewal rights upon signing.
Notes on Commercial Properties Below
The sample of Toronto commercial properties available for lease or sale below have been chosen to provide general information on rental rates and costs for commercial (retail) space in the greater Toronto area. The information has been obtained from sources believed to be reliable. However, we have not verified the information independently, and make no guarantee, warranty or representation as to its veracity.
Any projections, opinions, assumptions or estimates used are for example only, and do not represent the current or future performance of the commercial property. You and your advisers should conduct a careful, independent investigation of the commercial property to determine to your satisfaction the suitability of the commercial property for your needs. These commercial properties may not actually be currently available. The listings are not necessarily active with CBRE, and the information is not intended to promote a registrant or the business of a registrant. Rates and availability are subject to change.
And if you’re interested in Industrial property for sales and lease, click here.