Frequently Asked Questions
Commercial property rental payments are the sum of the Net Rent, the Additional Rent (sometimes referred to as the T.M.I.) and the applicable H.S.T. Your monthly property rental rate would be calculated by multiplying your rentable square footage by the yearly net rental rate, and then dividing the result by 12. A similar calculation is done for the Additional Rent.
For example, if you have 1000 rentable square feet, and the annual net rent per square foot is $6.00, 1000 x $6.00 = $6000. $6000 annually / 12 months = $500.00 a month in rent.
Similarly, if the annual additional rent per square foot is $3.42, 1000 x $3.42 = $3,420. $3,420 annually / 12 months = $285.00 a month in rent.
The monthly property rent payable would be the sum of the net rent and additional rent ($785.00 in the example above). H.S.T. is then added for a total monthly property rental in the amount of $887.05.
Begin your search for commercial property early. If you are opening a new business, you do not want to find yourself under time constraints dealing with issues which you may not have considered. If you are relocating an existing business to a new property, allow yourself more time than you feel you may need because you will be conducting business as usual in your existing location during this time. Generally speaking, you should begin your business property search efforts 4 - 6 months before your move date. By planning well in advance, time will be your ally, not your enemy.
Gross Rent is the total of Net Rent and T.M.I. (Taxes, Maintenance and Building Insurance) whereas Net Rent is the rent calculated before including such recoverable costs.
Most commercial property rentals allow the existing tenant to sublease or assign their premises. Typically, the Landlord is unable to unreasonably withhold consent to a sublease/assignment. A prudent Landlord however will consider the strength of covenant being offered by the incoming sub-tenant when deciding whether or not to offer its consent. A Landlord will usually accept a sublease/assignment if the financial position/security of the proposed sub-tenant is equal or better than that of the assigning tenant.
A "Make Good" is the tenant's obligation to return the premises to their original condition at the end of the lease term as existed prior to the time the tenant took possession. Normal wear and tear is excluded.