Alberta Commercial Lease Guide (Canada)

Commercial Lease Guide for Alberta

A practical, tenant-focused guide to Alberta commercial leases — not legal advice.

Not legal advice. Use this as a checklist and discuss with a qualified professional.

What to know before you sign

Alberta deals often move fast, and many leases are net leases where operating costs and maintenance obligations determine the real monthly cost.

Alberta has GST (but no provincial sales tax). Confirm whether rent and recoveries are stated “plus GST” and make sure cost pass-throughs are defined and auditable.

Major markets
Where leasing norms concentrate.
  • Calgary
  • Edmonton
  • Red Deer
  • Lethbridge
  • Fort McMurray
Common lease types
Typical structures and what to watch.
  • Retail: net lease (additional rent + CAM)
  • Industrial: net lease (roof, yard, and paving language matters)
  • Office: modified gross (expense escalations and exclusions)
Cost drivers
Items that often create surprise bills.
  • Additional rent/CAM definitions and audit rights
  • GST treatment (“plus GST” on rent and recoveries)
  • Roof/HVAC/paving replacement exposure
  • Utilities and winter operating costs (heating, snow removal)
  • Insurance deductibles and risk shifting

Key things to watch in Alberta

Leasing norms and pass-through structures vary by province/territory. Here are top issues we see for tenants in Alberta:

GST (No Provincial Sales Tax)
Alberta has no provincial sales tax, but GST may apply to commercial rent. Clarify whether rent is stated 'plus GST'.
Repair vs. Replacement Allocation
Negotiate clear responsibility for HVAC/roof/structural items and cap tenant exposure for replacements (capital items should generally remain landlord responsibility).

Negotiation checklist

Define and audit CAM/additional rent
Require itemized budgets, annual reconciliation, and audit rights. Exclude capital replacements (or amortize) and cap management/admin fees.
Repair vs. replacement caps
Separate routine maintenance from capital replacement (roof/HVAC/structural). Negotiate caps or landlord responsibility for major replacements.
GST clarity
Confirm what is “plus GST” (base rent, additional rent, utilities recoveries). Treat tax treatment as a real budget line item.
Rent start tied to delivery and approvals
If you need buildout or permits, keep rent from starting until the premises are usable and required approvals are obtained.
Default language you can survive
Add written notice + cure periods, cap late fees/interest, and avoid acceleration language and unlimited attorney-fee shifting.
Exit flexibility
Negotiate reasonable assignment/sublease rights and consent standards so you can sell the business or restructure.

Common landlord traps

  • Uncapped pass-throughs: Operating costs, taxes, and insurance can rise year-to-year without a cap.
  • Capital replacements billed to tenant: Avoid language that makes you pay for roof/HVAC replacement.
  • Short notice deadlines: Renewal and termination rights can depend on strict written notice windows.
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Frequently asked questions

Do Alberta commercial leases usually include additional rent?

Often yes—especially for retail and industrial. Additional rent typically includes operating costs, taxes, and insurance. Ask for clear definitions, budgets, reconciliation, and audit rights.

Is GST charged on Alberta commercial rent?

Often yes. Confirm whether rent and recoveries are “plus GST” and how taxes are applied to CAM/operating-cost charges.

Does BizLeaseCheck provide legal advice?

No. It helps you spot common risks and compare leases quickly, but it’s not legal advice. Use it alongside qualified professional review for your situation.