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Commercial Spaces 2018-03-21T15:43:05+00:00

THE ABC’S OF ACQUIRING COMMERCIAL (RETAIL) SPACE BY LEASE OR SALE

Commercial space is also often referred to as retail space. In the Toronto Ontario area leasing costs for commercial space are typically expressed on a per square foot per annum basis. There are two main components to the rent paid by the tenant, the “Net” or “Basic” Rent and the “T.M.I”. The Net rent provides a return on investment to the Landlord on its real estate asset. The T.M.I. typically includes real estate Taxes, Maintenance, and building Insurance. The Gross Rent is the sum of the Net Rent and the TMI. Utilities costs and other services such as garbage removal and janitorial services are usually in addition to the Gross Rent. Confirmation of all costs is recommended.

 

COMMERCIAL SPACE FOR LEASE OR SALE

In acquiring a commercial property most companies lease their space as opposed to a sale primarily due to the large capital investment required in purchasing a property and due to the lack of availability of suitable commercial properties available for sale. The length of lease term is negotiable but in the Greater Toronto Area a lease term of 5-10 years is most common with the tenant often having renewal rights.

The sample properties 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. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisers should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. These properties may not currently be available. They are not necessarily active listings 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.

CHOOSE THE BEST COMMERCIAL PROPERTY