Cost per Sq Ft: GTA Industrial Rent Guide

What is the difference between a base building and turnkey industrial lease?

In a base building industrial lease, the landlord delivers the premises in a shell or base condition and the tenant is responsible for completing improvements to make the space operational — often funded through a tenant improvement (TI) allowance from the landlord. In a turnkey lease, the landlord constructs or fits out the space to the tenant's specifications and delivers it ready to occupy, typically at a higher base rent.

What is CAM (common area maintenance) in industrial real estate?

CAM, or common area maintenance, refers to the costs a tenant pays — on top of base rent — for the upkeep and operation of shared areas in a multi-tenant industrial building. In a typical GTA industrial net lease, CAM is one component of the operating cost recovery alongside property taxes and building insurance, and is charged on a per-square-foot basis proportional to the tenant's share of the building.

What is a right of first refusal in an industrial lease?

A right of first refusal (ROFR) in an industrial lease gives the tenant the contractual right to match any third-party offer the landlord receives on an adjacent or specified space before the landlord can lease it to someone else. It is a space-control tool that lets an expanding tenant secure future growth space without committing to it upfront.