Markham’s Commercial Landscape
Often called “Canada’s High-Tech Capital,” Markham hosts a dense concentration of corporate offices, flex industrial space, and retail plazas, particularly along Highway 7, Warden Avenue, and the Highway 404 corridor. That concentration gives business tenants real choice, but it also means lease terms and rates vary significantly by corridor and building class.
Understanding Lease Structures
Unlike residential renting, commercial leases in Markham are rarely a simple flat monthly rate. Most fall into one of a few structures:
- Gross lease: tenant pays one inclusive rent figure; landlord covers property tax, insurance, and common area maintenance.
- Net lease (single, double, or triple net): tenant pays base rent plus some or all of property tax, insurance, and maintenance separately — triple net (NNN) is the most common structure for retail and industrial space in Markham.
- Percentage lease: common in retail, where rent includes a base amount plus a percentage of the tenant’s sales above a threshold.
Key Terms to Negotiate
- Term length and renewal options — a shorter initial term with renewal rights can offer flexibility for a growing business.
- Additional rent estimates — get a clear, itemized breakdown of estimated CAM (common area maintenance) charges before signing, not just the base rent figure.
- Permitted use clause — make sure it’s broad enough to cover how your business might reasonably evolve over the lease term.
- Exclusivity clauses — particularly relevant in retail plazas, protecting you from a directly competing tenant being leased space in the same plaza.
Work With Someone Who Knows Commercial, Not Just Residential
Commercial leasing in Markham involves materially different legal and financial considerations than residential rentals. A real estate professional experienced specifically in commercial transactions — ideally with a lawyer reviewing the final lease — protects a business tenant far better than navigating a commercial lease using residential rental assumptions.
Thinking about your next move in Richmond Hill, Markham, or York Region? Contact Ray Azar for a confidential, no-obligation consultation and a current market analysis tailored to your property.