Start your commercial space search.

Meet your REALTOR® and review the RECO guide

Start with a strategy conversation about your business, budget, ideal location, timing, and space needs — size, zoning, parking, signage, special uses.

Before providing services or advice, your REALTOR® must give you the RECO Information Guide and explain your options under TRESA, including what it means to be a client vs. a self-represented party.

Sign a representation agreement (if you choose to be a client)

If you want full representation, you’ll sign a written representation agreement with a brokerage. This document sets out:

• The services the brokerage will provide
• Duties owed to you (confidentiality, loyalty, etc.)
• How the brokerage is paid (commission, fees, or both)
• How long the agreement lasts

You can hire a REALTOR® for:

• One specific property
• A defined small or large area — for example, a business park or downtown strip
• A type of space (office, retail, industrial, etc.)

If you are working with a REALTOR®, have them book and attend all showings and landlord meetings with you.

Clarify your requirements and prepare financials

Before viewing space, be ready with:

• Your legal business name and structure (corporation, partnership, sole proprietor)
• Summary of your business — what you do, years in operation, locations
• Budget for base rent + additional rent (TMI/operating costs) + utilities
• Desired lease term (e.g. 3–5 years) and any renewal options
• Any special needs: venting, floor loads, truck access, signage, patio use, licensing

Landlords often ask for supporting financials, such as:

• Financial statements for the business
• Bank reference or credit reference
• Business plan (for newer businesses)
• Personal net-worth or income statement and ID for any guarantors

Search, tour properties, and assess fit

Your REALTOR® helps you shortlist properties that match your use, zoning, and budget. During tours, pay attention to:

• Layout, ceiling height, access, and loading
• Parking, signage visibility, and foot/vehicle traffic
• Building systems (HVAC, electrical, plumbing) and any retrofit costs
• What’s included in additional rent — TMI/operating costs, common-area maintenance, taxes, insurance

Ask early about landlord work vs. tenant work: who pays for what in the build-out.

Letter of Intent (LOI) or Offer to Lease

Once you identify a space, your REALTOR® helps you prepare a Letter of Intent or Offer to Lease that outlines key business terms, such as:

• Parties to the lease (tenant/guarantor, landlord)
• Premises description and size
• Use of the premises — what your business will do there
• Term and renewal options
• Base rent and how it escalates
• Additional rent (TMI/operating costs) and utilities
• Deposit structure and any security or guarantees
• Tenant improvement allowance or landlord work
• Conditions — for example: financing, lawyer review, permits, franchise or third-party approval

This document is usually negotiated before a full formal lease is drafted.

Landlord review, due diligence, and approvals

The landlord reviews your proposal and supporting information. They may:

• Assess your business and financial strength
• Request further documents or references
• Propose changes to term, rent, or conditions

As a prospective tenant, you should also do your own checks:

• Confirm zoning and permitted uses with the municipality
• Consider how the space works for staff, customers, and logistics
• Think through future growth or potential exit — sublease, assignment, expansion rights

Formal lease drafting and legal review

Once business terms are agreed, the landlord’s lawyer usually prepares a full commercial lease. Commercial leases are detailed contracts and are not covered by the Residential Tenancies Act or the LTB. Your rights and obligations largely come from the lease itself, common law, and Ontario’s Commercial Tenancies Act.

Before signing, it is strongly recommended that you:

• Have a lawyer experienced in commercial leasing review the lease
• Check that all agreed business terms are correctly reflected
• Understand clauses on default, personal guarantees, assignment/subletting, exclusivity, relocation, and early termination

Deposits, guarantees, and insurance

Commercial leases often require:

• Security deposit and/or prepaid rent
• Personal guarantee or indemnity from business owners, especially for new businesses
• Proof of commercial general liability (CGL) insurance, sometimes with the landlord named as an additional insured

The exact amounts and conditions are negotiated in your lease; there is no standard statutory limit like there is for residential rent deposits.

Build-out, possession, and opening

After the lease is signed and conditions are satisfied:

• Landlord and tenant work — construction, fixturing, permits — is scheduled
• A possession date and fixturing period, if any, are set out
• You arrange utilities, insurance, licences, and any inspections

Your REALTOR® can help coordinate with the landlord’s team, but you and your professional advisors remain responsible for design, permits, and compliance with building codes and business regulations.