Prince Edward Island Commercial Lease Guide (Canada)

Commercial Lease Guide for Prince Edward Island

A practical, tenant-focused guide to PEI 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

PEI leases often follow net-lease patterns where additional rent and operating costs are a meaningful share of the monthly bill.

Small-market leasing also increases the value of flexible exit terms and clear cost allocation—especially around exterior maintenance and building systems.

Major markets

Where leasing norms concentrate.

Charlottetown
Summerside
Stratford
Cornwall

Common lease types

Typical structures and what to watch.

Retail: net lease (additional rent + CAM)
Office: modified gross (utilities and escalations)
Industrial: net lease (roof/HVAC/paving responsibilities)

Cost drivers

Items that often create surprise bills.

HST treatment on rent and recoveries
Additional rent/CAM definitions and audit rights
Snow/ice removal and exterior maintenance scope
Repairs vs. replacement exposure for major systems
Insurance deductibles and casualty/abatement language

Key things to watch in Prince Edward Island

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

HST on Rent

Budget for HST and ensure the lease is clear on whether amounts are tax-inclusive or stated 'plus HST'.

Variable Cost Budgeting

Net leases can include variable costs like utilities, snow removal, and maintenance. Ask for historical statements and require annual reconciliations.

Negotiation checklist

Define and audit additional rent/CAM

Require budgets, annual reconciliation, and audit rights. Exclude capital replacements (or amortize) and cap admin/management fees.

HST clarity

Confirm whether base rent and additional rent are “plus HST” so your budget is accurate.

Repairs vs. replacement boundaries

Separate routine maintenance from major replacements (roof/HVAC/structural). Negotiate caps for tenant responsibilities.

Winter and exterior scope

Define snow/ice responsibilities, areas, and service levels. Avoid being responsible for whole common areas in multi-tenant properties.

Rent start tied to opening readiness

Keep rent from starting until the premises are usable and required approvals/buildout are complete.

Exit flexibility

Negotiate assignment/sublease rights and consider shorter initial terms or break options if your business is seasonal.

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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Official resources

PEI business/corporate registry service PEI government — business resources Canada Revenue Agency (CRA)

Other tools

Frequently asked questions

Is additional rent common in PEI leases?

Yes in many retail and industrial deals. Additional rent usually includes operating costs, taxes, and insurance. Ask for definitions, budgets, reconciliation, and audit rights.

What should seasonal businesses prioritize in PEI?

Shorter initial terms or flexible exit options, clear rent start dates tied to opening readiness, and predictable operating-cost language so off-season costs don’t surprise you.

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.