Commercial lease review
A commercial lease is often the largest and longest financial commitment a small business makes. We review and negotiate your lease or offer to lease — explaining it in plain terms, identifying the key risks, and checking whether the important provisions are market standard — so a commitment this foundational to your business is clear, fair, and built to minimize risk. All at a fixed fee, scoped before any work begins.
A commercial lease works very differently from a residential one. The tenant protections that apply to residential tenancies don’t apply here — in Ontario the relationship is governed largely by the lease itself, and the landlord keeps strong remedies if you default. The terms you agree to drive your costs and your flexibility for the full term, and once you’ve signed, you’re bound to them.
The provisions tenants most need to watch for include:
Most commercial leases are “net” — on top of base rent you pay a share of operating costs, property taxes, maintenance, and insurance, often uncapped. Retail and restaurant leases may add percentage rent as well — a share of your sales above a set threshold. The real cost of the space can be well above the posted rate.
Many landlords ask the owner to personally guarantee the lease, putting your home and personal assets behind the business — sometimes for the full term, with no cap.
If the lease limits your right to assign or sublet, you may be unable to sell the business or exit the space when your plans change.
Ongoing repair duties and an obligation to restore the premises at the end of the term can leave you with large, unexpected bills.
No renewal right, rent left “to be negotiated,” or a landlord demolition or relocation clause can put your location and costs out of your control.
An offer to lease can look like a preliminary step, but it’s often a binding contract that locks in rent, term, use, and the other key business terms. The best time to involve us is before you sign it, while everything is still open to negotiation.
Already signed, or further along than you’d like? We can still help — explaining your obligations, flagging the risks, and looking for room to address them, including at renewal.
Share the lease or offer to lease and a few details about the space, the term, and what you’re planning for the business.
A call to understand the space, your plans, and what you need the deal to do — so the review is focused on what actually matters to you.
A plain-language engagement letter setting out exactly what we’ll do, the fixed fee, and by when — agreed before any work begins.
We walk you through the lease in plain terms — your obligations, the real cost, and the risks — and help you negotiate the points that count, so you sign knowing exactly what you’re agreeing to.
Commercial leases come with far fewer of the protections that apply to residential tenancies — in Ontario the lease itself largely governs, and the landlord’s standard form is written to protect the landlord. Because the lease is usually a multi-year commitment, often with a personal guarantee behind it, a review before you sign is generally far cheaper than living with terms you didn’t fully understand.
Often, yes. An offer to lease can look like a preliminary step, but it frequently locks in the key business terms — rent, term, permitted use, and more — as a binding contract. That’s why the best time to have it reviewed is before you sign it, while the terms are still open to negotiation.
Most commercial leases are “net” leases, which means that on top of base rent you also pay a share of the building’s operating costs, property taxes, maintenance, and insurance. These charges can be significant and are sometimes uncapped, so the real cost of the space can be well above the headline rate. We help you understand them and, where possible, limit what you’re agreeing to pay.
Many landlords ask the business owner to personally guarantee the lease, which puts your personal assets behind the company’s obligations — sometimes for the full term. It isn’t always avoidable, but it’s often negotiable: a dollar cap, a time limit, or a reduced guarantee may be on the table. We advise you on the risk and help you push for better terms before you sign.
Not easily — usually only on the terms the lease allows. Whether you can assign the lease, sublet the space, or end it early depends on what the document says, which is exactly why those clauses matter so much before you commit. We make sure you understand your exit options and negotiate for flexibility where we can.
Yes. It’s better to involve us before you sign, while the terms are still open — but if you’ve already signed, we can still explain your obligations, flag the risks, and look for room to address them, including at renewal.
Before you sign the lease or the offer to lease, let’s make sure you know exactly what you’re committing to. The first conversation is on us.
Book a callThe information above is general in nature and is not legal advice. Every situation and transaction is different, and advice tailored to your specific circumstances is required to address your particular needs. If you have questions, contact Align Counsel at info@aligncounsel.ca.