Find a Lawyer / Canada / Commercial Leasing Law

Find Lawyers in Canada for Commercial Leasing Law

Practice Area Overview

The practice of commercial leasing law involves acting for a commercial party in a contractual agreement (known as a lease) where one party (known as the landlord) grants an estate in real property to the other party (known as the tenant). During the term of the lease, a tenant is entitled to use and possess the premises on an exclusive basis in return for the payment of rent to the landlord. Provided that the tenant complies with its obligations under the lease, the tenant will be entitled to the undisturbed use and enjoyment of the premises (otherwise known as the covenant of quiet enjoyment). Examples of commercial leases include office, retail, and industrial tenancies. It is common for parties to initiate their negotiations by entering into an offer to lease which outlines the basic business terms of the lease, including the location and size of the premises, the duration of the lease (known as the term), the rent payable by the tenant (which can include basic/minimum rent, additional rent, and percentage rent), and any special provisions relating to the tenancy, including work to be performed by the landlord, free rent periods, fixturing periods, options to renew the lease or extend the term and restrictive covenants. After the offer to lease, the landlord will typically propose the form of lease to be used in the circumstances. Commercial tenants should be cautioned that the landlord’s form of lease can sometimes contain onerous provisions which they should attempt to negotiate to suit their business needs. Once executed, commercial leases are governed by their terms and conditions, the common law, and, to the extent applicable in the relevant jurisdiction, statutes and regulations.

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