What exactly is included?
Ask for base rent, additional rent estimates, historical reconciliations if available and rent escalation schedules.
TENANT & LANDLORD RESOURCES
Commercial lease costs
explained for Alberta.
Base rent is only one part of a commercial property decision. Understand additional rent, estimated monthly occupancy costs, improvement expenses and the lease details worth checking before signing.
KNOW THE FULL PICTURE
Base rent is not necessarily your all-in cost.
Commercial premises may be advertised at a rate per square foot per year. Depending on the lease, the tenant may also pay a share of operating costs, taxes, utilities, GST and other charges.
- Base rent: The negotiated rent for occupancy, as described by the agreement.
- Additional rent: Defined recoveries such as operating costs or property taxes, where applicable.
- Utilities: Electricity, gas, water or other service costs, whether separately metered or recovered.
- Fit-out and start-up: Improvements, furniture, signage, permits, insurance and moving expenses.
- Lease terms: Deposits, escalations, renewal options, repairs, restoration and guarantees.
EXAMPLE · NOT A MARKET QUOTE
How an annual per-square-foot rate works
Imagine a 2,500 sq. ft. unit with an assumed base rent of $22 per sq. ft. annually, plus $12 per sq. ft. annually in additional rent.
Base rent: 2,500 × $22 = $55,000/year
Additional rent: 2,500 × $12 = $30,000/year
Combined: $85,000/year ÷ 12 ≈ $7,083/month, before applicable GST, utilities and other items.
These are illustrative numbers, not actual Edmonton asking rates.
TRY DIFFERENT ASSUMPTIONS
Estimate a starting occupancy cost.
Adjust the area and annual per-square-foot inputs. The calculator sums base and additional rent and divides by 12. Ask for a property-specific written rent breakdown before you rely on any figure.
Est. monthly CAD—
Est. annual CAD—
Hypothetical figures. Excludes GST if applicable, utilities, deposits, fit-out, tenant insurance, escalations and other costs.
BEFORE YOU SIGN
Questions to take into a lease review.
Who pays for what?
Review repairs, HVAC, insurance, maintenance, utilities, taxes, operating recoveries and restoration clauses.
Can the business operate?
Confirm municipal permissions, fit-out feasibility, landlord consents and the relevant lease conditions.
COSTS & TERMS FAQs
Commercial lease questions.
What is the difference between net rent and gross rent?
The labels describe different cost-allocation arrangements, but their meaning depends on the written lease. In a net-style lease, the tenant may pay base rent plus defined recoveries. A gross-style amount may bundle certain costs; exclusions still matter.
What is a triple-net (NNN) commercial lease?
NNN is often used to describe a structure in which tenants bear specified property-tax, insurance and maintenance-related costs in addition to base rent. Canadian leases can use different wording and recoveries, so review the actual agreement.
Is GST charged on commercial rent in Alberta?
Commercial rents are generally taxable supplies for GST purposes, subject to the actual circumstances and applicable rules. Confirm with a qualified tax professional and check whether the quoted rent is before tax.
What should tenants budget besides rent?
Possible costs include utilities, deposits, insurance, tenant improvements, permits, signage, internet, moving, professional fees and any lease-specific operating recoveries.
Are example lease figures current Edmonton market rates?
No. The figures in the calculator are hypothetical inputs to explain the math, not a quote, appraisal or current market survey. Request actual rates and expense estimates for each property.
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