Before renting commercial space in Montreal, confirm that your business activity is permitted at the address, calculate the full occupancy cost and have the proposed lease reviewed. Base rent is only part of the decision. Operating charges, improvements, maintenance obligations and renewal terms can significantly affect whether the premises suit your business.
A storefront or office should support how you operate, not simply look attractive during a viewing. The right choice depends on customers, staff, equipment, deliveries and growth plans. A structured comparison can help you avoid committing to space that becomes expensive or impractical after opening.
Define what the business needs from the premises
List your essential requirements before contacting brokers or landlords. Include floor area, layout, customer access, loading, storage and electrical or plumbing needs. A café, professional office and repair workshop can require very different buildings.
Consider how the location fits your customers. Walk past at relevant hours and observe activity without assuming foot traffic automatically converts into sales. Check visibility, nearby complementary businesses and the ease of arriving by transit or car.
Our Montreal business community guide provides broader context, while the business startup guide introduces other planning steps. This article focuses specifically on choosing and evaluating premises.
Check the permitted use before committing
Montreal’s commercial occupancy permit guidance explains the authorization associated with commercial, industrial or professional activities. Confirm requirements for your proposed activity with the relevant borough.
The fact that another business operated there does not establish that your own use is allowed. A change in activity, layout or equipment may create new requirements. Ask about zoning, building work, accessibility and any conditions affecting the premises.
Consider an appropriate permit-related condition in negotiations, with professional advice on its wording. Do not rely on a landlord’s informal assurance as a substitute for official confirmation. Timing matters when rent begins before approvals or construction are complete.
Understand base rent and additional charges
Commercial listings may quote rent per square foot per year. Confirm the rentable area, measurement method and whether quoted amounts are annual or monthly. Ask what is included and what is charged separately.
Additional charges may involve property taxes, common area costs, insurance or other operating expenses, depending on the lease. The terminology is less important than the actual obligations written into the agreement.
BDC’s commercial leasing terminology guide explains common concepts. Its leasing budget guidance is another useful starting point. Apply those concepts to the actual proposal rather than assuming every lease works the same way.
Build a complete occupancy budget
| Cost category | What to request |
|---|---|
| Base rent | Rate, area and scheduled increases |
| Additional rent | Included expenses and reconciliation method |
| Utilities | Metering and responsibility for payment |
| Improvements | Scope, allowance and approvals |
| Operations | Cleaning, waste, security and maintenance |
| Initial costs | Deposit, professional fees and moving expenses |
| Exit costs | Restoration and removal obligations |
As a calculation example only, an annual base rent of $30 per square foot for 1,000 square feet equals $30,000 per year, or $2,500 per month before other charges. These figures are hypothetical, not a Montreal market quotation. Repeat the calculation with the actual proposal.
Ask for historical operating costs where available and how estimates are adjusted. A quoted additional-rent estimate may later be reconciled against actual expenses. Understand what records you can review and whether any charges are capped.
Assess the condition and improvement requirements
Inspect the premises with the people who understand your equipment and intended layout. Check entrances, washrooms, ventilation, electrical capacity and storage. Ask what belongs to the landlord and what the previous tenant must remove.
Get realistic improvement quotes before finalizing the financial plan. A space that needs major work may be less affordable than a higher-rent space that is closer to ready. Confirm whether work requires drawings, permits or building approvals.
A tenant improvement allowance should have clear terms. Ask when it is paid, what expenses qualify and what documentation is required. It may not provide cash at the moment you need to pay contractors.
Read term, renewal and exit clauses carefully
The lease term should fit your business plans and risk tolerance. A longer commitment may provide continuity but also creates obligations if the business changes. Ask how renewal options work, including deadlines and the method for determining future rent.
Review assignment and subletting clauses. These provisions may affect a business sale, relocation or restructuring. Do not assume you can leave by finding another tenant without the landlord’s consent.
Clarify guarantees and who is personally responsible. Have a qualified legal professional review material clauses before signing. A commercial lease is a significant commitment, and residential rental assumptions should not be carried over automatically.
Check everyday operating details
Confirm permitted hours, signage rights, delivery access and rules for shared areas. Ask about waste collection, snow clearing, pest control and responsibility for repairs. These details affect the customer experience and ongoing costs.
Speak to nearby businesses where appropriate to understand practical conditions, while verifying important claims independently. Look at parking and transit during busy periods. Our STM guide can help you assess staff and customer connections.
Record the condition at possession and retain written agreements about unfinished work. Coordinate keys, utility accounts, insurance and contractors so that the opening schedule reflects the actual readiness of the space.
Compare leasing with alternatives
Some businesses may begin in a shared office, smaller unit or other suitable arrangement while demand develops. BDC’s commercial real estate resources provide context for evaluating leasing and ownership.
Compare flexibility, privacy and operating requirements. An alternative is only helpful if it supports the activities you intend to conduct and satisfies applicable rules. Avoid paying for more space solely because you hope growth will eventually justify it.
Frequently asked questions
Does the advertised rent include everything?
Not necessarily. Ask for base rent, additional rent, utilities, taxes and all other recurring or initial charges in writing.
Can I use a space for any business?
No. Confirm the proposed use with the borough and check occupancy and other approval requirements before committing.
Who should review the lease?
A qualified legal professional can review obligations and risks, while an accountant or financial adviser can help assess the complete budget.
