What You Need to Know About Commercial Lease Agreements in Toronto

Entering into a commercial lease agreement is one of the most critical decisions a business owner can make. Whether you're launching a new venture or expanding your footprint, understanding the legal intricacies of leasing commercial space in Toronto is essential to protect your rights, avoid disputes, and ensure long-term success.

At Mayfair Law Group, our experienced Toronto Real Estate Lawyers guide clients through the complexities of Toronto real estate law, ensuring lease agreements are reviewed, negotiated, and drafted to reflect your best interests. We proudly assist businesses across the Greater Toronto Area—including Toronto, North York, Etobicoke, Scarborough, Mississauga, Brampton, Vaughan, Markham, and Richmond Hill.

Why Commercial Lease Agreements Matter

A commercial lease is more than just a rental agreement—it’s a legally binding contract that governs your rights, responsibilities, and risks for years to come. Poorly drafted or misunderstood lease terms can lead to financial strain, legal conflicts, and even business closures.

Common issues that arise in commercial leasing include:

Hidden costs such as maintenance fees or property taxes
Restrictions on signage, hours of operation, or permitted use
Unclear responsibilities for repairs and renovations
Early termination penalties or renewal terms
Personal guarantees that extend liability beyond the business

That's why having a Toronto Real Estate Lawyer review your lease before signing is essential.

Key Clauses to Understand in a Commercial Lease

Whether you're leasing office space, retail storefronts, industrial property, or restaurants, you should be familiar with the following key lease components:

Rent Structure and Additional Charges
Understand the base rent versus additional expenses such as Common Area Maintenance (CAM), property taxes, utilities, and insurance. Some leases may appear affordable upfront but include significant monthly extras.
Term and Renewal Options
A fixed lease term can limit flexibility. Ensure you understand renewal clauses, rent escalations, and what happens when the lease expires.
Use of Premises
Landlords often restrict how the leased space may be used. A vague or limiting clause can interfere with your business operations or expansion plans.
Assignment and Subletting
If you want to sell or relocate your business, can you assign your lease to another party? A restrictive assignment clause could trap you in a lease even if your business changes direction.
Repairs and Maintenance
Who is responsible for fixing HVAC, plumbing, electrical, and structural issues? It’s essential to clarify these obligations in the lease to avoid costly surprises.
Termination and Default
Look for penalties for breaking the lease early and procedures for addressing missed rent payments. These clauses often heavily favour landlords unless negotiated properly.

How a Toronto Real Estate Lawyer Can Help

At Mayfair Law Group, we protect your legal and financial interests by:

Reviewing and explaining lease terms in plain language
Negotiating on your behalf to secure fair and balanced clauses
Advising on zoning, licensing, and regulatory compliance
Drafting custom lease agreements aligned with your business needs

With in-depth knowledge of Toronto Real Estate Law, we ensure that every clause is structured to reduce liability, safeguard your operations, and support your growth.

Serving Businesses Across the GTA

Whether you’re opening a new café in Etobicoke, signing a retail lease in Scarborough, or moving your office to Vaughan or Mississauga, Mayfair Law Group is here to help.

We proudly serve clients throughout:

Toronto
North York
Etobicoke
Scarborough
Mississauga
Brampton
Vaughan
Markham
Richmond Hill

No matter your location or industry, our Toronto Real Estate Lawyers are ready to help you make informed legal decisions.

Book a Consultation with Mayfair Law Group Today

Before you sign any commercial lease in Toronto, protect your business by speaking with an experienced Toronto Real Estate Lawyer at Mayfair Law Group. We offer tailored legal advice and contract support designed to prevent disputes and position your business for success.

Disclaimer: The content provided on this blog is for informational and educational purposes only. It is not intended as legal advice and should not be relied upon as such. For legal advice or guidance specific to your situation, please consult with a qualified legal professional. Mayfair Law Group makes no representations regarding the accuracy or completeness of the information contained in this blog and is not responsible for any actions taken based on its contents.