Commercial Lease
Lawyer Toronto.
Reviewing, negotiating, and resolving commercial lease disputes for Toronto tenants, landlords, and business owners. Protect your space, your terms, and your investment.
· Reviewed by Jonathan Kleiman, J.D.
Ontario Bar
200+ reviews
consultation
Why you need a lawyer for your commercial lease
Commercial leases are not consumer-friendly documents. They are drafted by the landlord's lawyers to protect the landlord's interests. Unlike residential tenancies, commercial leases are not governed by the Residential Tenancies Act — meaning you have far fewer statutory protections.
The terms of the lease are the law of your tenancy. What you agree to is what you are bound by — for the entire term. A commercial lease lawyer reviews the lease, identifies unfavourable terms, and negotiates changes before you sign.
Services for commercial tenants
Lease review
Jonathan reviews your proposed commercial lease and provides a clear, plain-language summary of the key terms, risks, and provisions that should be negotiated or removed.
Lease negotiation
After identifying unfavourable terms, Jonathan negotiates with the landlord or the landlord's lawyers on your behalf — pushing for better rent structures, tenant improvement allowances, assignment rights, renewal options, and removal of personal guarantees.
Assignment and subletting
If your business needs change — expansion, downsizing, or relocation — Jonathan assists with assigning the lease to a new tenant or negotiating a sublease arrangement.
Lease renewal and renegotiation
When your lease term is approaching expiry, Jonathan reviews the renewal terms and negotiates on your behalf to ensure you are not locked into unfavourable conditions for another term.
Services for commercial landlords
Lease drafting
Jonathan drafts commercial leases, offers to lease, and lease amendments for landlords and property managers across Toronto.
Tenant disputes and enforcement
When a tenant defaults — non-payment, breach of use restrictions, unauthorized subletting, or abandonment — Jonathan advises on enforcement options including demand letters, right of re-entry, and litigation.
Signing or negotiating a commercial lease?
Free 30-minute consultation. No fee, no obligation.
Key commercial lease terms to understand
- Base rent and additional rent — base rent is your fixed monthly amount; additional rent (TMI) covers your proportionate share of taxes, maintenance, and insurance. Together, they are your total occupancy cost.
- Net lease vs. gross lease — a net lease passes operating costs to the tenant; a gross lease includes them in the rent. Most commercial leases in Toronto are net leases.
- Permitted use — restricts what you can do in the space. If your business evolves, a narrow permitted use clause can prevent you from adapting.
- Assignment and subletting — controls whether you can transfer the lease or sublet part of the space. Landlords often require consent (and may charge fees).
- Personal guarantee — many landlords require the business owner to personally guarantee the lease. This eliminates the limited liability protection of your corporation for the lease obligation.
- Demolition clause — allows the landlord to terminate the lease early if they decide to redevelop the property. This is common in Toronto's rapidly developing commercial real estate market.
- Renewal options — the right to extend the lease for additional terms. Without a renewal option, the landlord can refuse to renew or demand significantly higher rent.
- Tenant improvements (TI) — who pays for build-out and improvements, what happens to them at the end of the lease, and whether the tenant must restore the space to its original condition.
The cheapest commercial lease is not the one with the lowest rent — it is the one with the fewest surprises.
Commercial lease disputes
When disputes arise under a commercial lease, Jonathan represents both tenants and landlords in negotiation, demand letters, and litigation. Common disputes include:
- Non-payment of rent or additional rent
- Disputes over tenant improvement obligations
- Breach of permitted use restrictions
- Unauthorized assignment or subletting
- Landlord's failure to maintain the property or provide quiet enjoyment
- Early termination disputes
- Disputes over the return of a security deposit
Commercial lease disputes up to $50,000 can be resolved in the Ontario Small Claims Court. Larger disputes are handled in the Superior Court.
Talk to a commercial lease lawyer in Toronto
Whether you are signing a new lease, renewing an existing one, or dealing with a dispute — a commercial lease lawyer protects your interests before they become problems.
- Free 30-minute consultation
- Flat-fee lease review and negotiation
- 15+ years at the Ontario Bar
Call 416-554-1639 or book a free consultation.
FAQs.
Common questions about commercial leases in Ontario.
01Should I have a lawyer review my commercial lease?
Yes. Commercial leases are drafted to protect the landlord. A lawyer identifies unfavourable terms and negotiates changes before you sign. The cost of a review is a fraction of the cost of a dispute.
02What should I look for in a commercial lease?
Key provisions: rent structure (base + TMI), lease term and renewal options, permitted use, assignment and subletting rights, tenant improvement allowances, personal guarantees, demolition clauses, and termination provisions.
03Does the Residential Tenancies Act apply to commercial leases?
No. Commercial leases are governed by the lease terms and common law. Commercial tenants have fewer statutory protections than residential tenants — making the lease terms critical.
04Can a commercial landlord lock out a tenant?
Under Ontario's Commercial Tenancies Act, a landlord may exercise re-entry if the tenant is in default. Unlike residential tenancies, no tribunal order is required.
05How much does a commercial lease lawyer cost?
Jonathan offers flat-fee commercial lease review and negotiation. The fee is quoted before work begins, and the initial 30-minute consultation is free.
Signing a commercial lease?
Don't sign until a lawyer has reviewed the terms. Flat-fee lease review and negotiation. Free 30-minute consultation.