What to Know Before Signing a Commercial Lease



There are always nuances when dealing with contracts, sometimes the law itself is open for interpretation, and other times the contract itself is not well written or cohesive at all, which opens grounds for misunderstandings that can only be solved by lawyers in Calgary.

This is one of the many reasons why it is always best to trust those things to a commercial lawyer Calgary that can employ their expertise to ensure that you are signing a contract without surprises and precisely what you agreed upon.

There are several topics that you must stay alert always when signing a commercial lease, and we will briefly go over a few of them.

Know What Kind of Lease You Are Getting Into

There are different kinds of commercial leases you can get into, and it is important to know which are they and which you want for your business.

The first commercial lease that you need to be aware of is the net lease. In a net lease agreement, the tenant is the one responsible for taxes, insurance, and maintenance. The final value tends to be higher, but it gives the tenant more autonomy over how they will control the space.

The second commercial lease is a gross lease, which is when the landlord is the one responsible for any additional costs, and includes them in the base rent value. Final costs tend to be a little lower, which can support businesses that are looking to spend a little less, especially at the beginning of their story.

The third, and last one, is the triple net lease which puts all responsibilities of costs to the tenant, this includes taxes, maintenance costs, insurance, and any other cost outside of the base rent. While this is the type of lease that gives the most autonomy to the tenant, it is also the most expensive one.

Ensure Terms and Conditions Are Within What You Expected

The second thing that you and your lawyer need to make sure of is that the terms and conditions are within what was agreed upon. Some things are as simple as ensuring that the address is entirely correct – this may seem silly to say, but it is not uncommon to have problems with commercial leases because the bay inside the building was wrong in the lease, for example.

Other things such as caps and rent increases are extremely important to have in mind, you most definitely want to have a cap on how much rent can increase for the term of the lease. You will want to review the terms and conditions of incidental expenses as well, that is, the expenses that come on top of your base rent, such as utilities, maintenance, and common area costs.

On the topic of common area costs, such as snow removal or grass cutting, it is not uncommon for all tenants to share the expenses, but you will want to make sure this is laid out on the lease.

Within the terms and conditions, make sure you understand the responsibilities of the tenant to avoid problems in the future. As always, a commercial lawyer is the best tool to help you navigate those contracts.


Experienced lawyers in Calgary will support you by reviewing contracts, answering your questions regarding them, and making sure your best interests and rights are being protected while advising you on paths forward. As a new tenant, it is pivotal you understand those things and the type of space you will need so you can make an informed decision on what will be best for your business.

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