Leasing a commercial space in Ontario is not like renting an apartment. The law is different, almost everything is negotiated, and the lease you sign is what protects you. Here are the steps. Checked October 4, 2026.
A different law from renting a home
- Commercial leases fall under the Commercial Tenancies Act, not the Residential Tenancies Act.
- The Act does not regulate rent increases. The lease sets them.
- A signed commercial lease may take precedence over the Act, so the wording matters.
- The province does not get involved in commercial landlord and tenant disagreements. Disputes about money or property under $50,000 can go to Small Claims Court; larger claims go to the Superior Court of Justice.
The steps
- 1. Know your numbers. Work out the all-in monthly cost you can carry: net rent, TMI and HST. Use the commercial lease calculator.
- 2. Check zoning first. The city’s zoning bylaw sets which uses are permitted in each zone. Ask the city whether your exact business is permitted at the address before you spend on anything else.
- 3. Tour and shortlist. Look at parking, signage, power, visibility, and who your neighbours are. Ask for the actual TMI of the last two years.
- 4. Make an offer to lease. It sets the rent for every year, the term and renewal options, free rent and the fixturing period, the deposit, the permitted use, the work the landlord does, and your conditions.
- 5. Use the conditional period. Confirm zoning and permits, line up financing, and have your lawyer review the landlord’s lease.
- 6. Sign the lease. Read the personal guarantee, assignment and demolition clauses carefully. See the 12 clauses to check.
- 7. Fixturing and opening. Build out the space, get permits and inspections, and know the date your rent starts.
In Ontario the offer is often written on the OREA Agreement to Lease for commercial space, with a schedule for the terms that do not fit the form.
Two rules worth knowing
- Monthly tenancy with no fixed term: the tenant or the landlord must give written notice at least one month in advance, and the tenancy ends on the last day of a month.
- Late rent: a landlord can either change the locks and end the tenancy (from the 16th day after the rent was due), or seize and sell the tenant’s property to cover the rent. Not both.
More: net lease vs gross lease, and what TMI means and commercial leasing.
Sources (official pages, checked October 4, 2026)
- Ontario – Renting commercial property in Ontario (Commercial Tenancies Act, updated July 2, 2026)
- Ontario – Citizen’s guide to land use planning: zoning bylaws
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.