Lease / article / Planning guide

What to check before signing a commercial lease

The lease is often the most expensive decision in a project, and it is made before any design work begins. A space that looks right can hide problems—inadequate power, no route for kitchen exhaust, or landlord rules that limit what you can build. A few checks before signing can prevent costly surprises.

Zoning and permitted use

Confirm that your intended use is permitted at the address, and whether a change of use will trigger additional approvals. Check with the municipality and qualified professionals rather than relying on the previous tenant’s use.

Existing building services

Review electrical capacity, water and drainage, gas availability and HVAC condition. For restaurants, confirm whether kitchen exhaust can be routed to the roof or an approved discharge point, and whether a grease interceptor exists or can be added.

Landlord work versus tenant work

Ask for the landlord’s fit-out criteria and clarify which items the landlord provides—washrooms, HVAC, storefront, base-building services—and which are your responsibility. Make sure these items are written into the lease, not just discussed.

Occupancy, accessibility and exits

Seating capacity and staff numbers depend on exits, washrooms and accessibility. A space may not support the number of guests or workstations your business plan needs without significant changes.

Schedule and cost protection

Negotiate a fit-out period that reflects design, permits and construction—not only construction. Consider tenant allowances, rent-free periods and conditions that allow you to exit if approvals are not possible.

Get an early design opinion

A short site review with test layouts can show whether the space works before you commit. Consultony provides pre-lease design reviews and planning support for Toronto and GTA businesses. Legal and lease terms should always be reviewed by your lawyer.

Related reading

Complimentary planning guide / PDF

Pre-lease checklist

A practical checklist for designing and building a restaurant, retail store or office—from the first questions to the final handover.

Confirm the intended use is permitted at the address

Ask whether a change of use triggers additional approvals

Review electrical capacity, water, drainage and gas

Check HVAC condition and age

Restaurants: confirm a kitchen exhaust route and grease interceptor

Obtain the landlord’s fit-out criteria

Get the checklist.

12 considerations · printable PDF

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