Warehouse Lease Calculation
With commercial transactions Buyer’s or Tenant’s are considered Buyer Clients.
The costs of a warehouse in the Toronto GTA area range from $4.00 to $7.50 sq. feet net rent, the rate increases with clearance height particularly over 22 ft. This is only an approximation based on offered lease rates.
Further to the net rent there is an additional cost factor for Taxes Maintenance and the Landlord’s Building Insurance (TMI) which can range from $3.00 to $5.50 per square feet. Therefore the total cost may range from $7.00 to $12.50 per square feet plus H.S.T. TMI is a true hard cost to the Landlord. To calculate the cost of rent the Formula is as follows:
Total Sq. ft. x (Net Rent + TMI) = Annual Rent/ 12 = Monthly Rent
HST must be paid on all commercial leases. There will be additional costs such as Tenant Insurance, Utilities, Telephone and Internet. Please note most commercial leases are on a net\net\net basis.
If you are a buyer client; our Commission Fees are paid directly to our Brokerage by the Landlord on successful completion of a transaction.*
To become a client of our Brokerage it will be necessary to engage our services. Our Team’s focus is Commercial | Industrial | Office Sales and Leasing. I trust you will be in touch with my office to see if we can assist you further.
Office Rent Calculation
Office Rent in the Toronto GTA area may range from $8.00 to $27.00 per sq.ft. net rent. If you are looking at a AAA class a Building then the rates are far greater. There is another cost factor which reflects operating costs and realty taxes similar to TMI noted above in commercial and industrial properties. This factor will range from $12.00 per sq.ft. to $35.00 per sq.ft. as a bench mark. However can be greater mainly due to realty taxes. Office Leasing is can be complicated as there are other factors involved. For example the manner in which office leasehold improvements are to be amortized over the lease agreement as well additional costs as monthly parking.
This is why it is most important to be independly represented. If you wish further information on the points noted above and why independent representation is important in leasing office space. Please call Allen Mayer Broker directly.
* will be disclosured prior to touring a property.