Prepare the property and its essential documentation such as the deed, title report, rent roll, operating expense records, 3 years of financial statements, environmental reports, current leases, zoning verification documentation.

Establish a realistic price. Do research and look for market-supported data like comparable sales, or talk to a professional commercial real estate agent for help. Ultimately, you can hire an appraiser. There are three common methods used to determine the value. We typically consider all of them when we do valuation to come up with the market value: the Income Approach (based on Net Operating Income and Cap Rates), the Sales Comparison Approach, or the Cost Approach when applicable.

Prepare marketing package highlighting the property's unique features and distribute it via online listings, email campaigns, or direct outreach. You can choose to list the property yourself or hire a commercial real estate agent. 

You can use commercial marketing platforms or MLS ( Multiple Service Listings ) via licensed real estate agent.

Interested buyer will do preliinarry research and some due diligance tasks before decides to make an offer or submits LOI ( Letter Of Intent ) outlining basic terms, followed by a formal Agreement of Purchase and Sale (APS). 

The buyer will then conduct due diligence, which includes title searches, environmental assessments, and zoning compliance checks.

The final step involves transferring the title electronically through Ontario’s e-registration system, paying applicable Land Transfer Taxes, and finalizing all financial adjustments. This is done through your lawyer, so it's a good idea to find commercial  lawyer early in the process.

Some Important Aspects on the buyers side

Buyers will verify that the property's current or intended use complies with local municipal zoning bylaws.

Environmental Assessments

Phase 1 or Phase 2 Environmental Site Assessments are commonly required by buyers and lenders to check for contamination.

Taxes

Commercial real estate sales are generally subject to HST, although specific exemptions or elections may apply. Buyers must also pay Land Transfer Tax upon registration.

Tenants

If the property is tenanted, existing leases must be reviewed, and tenants may be asked to sign legally binding document to confirm the current, active terms and status of their lease ( estoppel certificate ).

Prepare property specifications: 

Rentable square footage, usable area, clear height, number of loading docks (truck-level vs. drive-in), power capacity (2 or 3 phase, amperage), zoning permissions etc...

Perform Repairs & Maintenance:

Roof repairs, HVAC servicing, lighting upgrades (e.g.,retrofitting to LED), flooring touch-ups, and curb appeal. Ideally, commecrial place should be clean and presentable for tours.


Environmental & Building Compliance: 

Ensure life safety systems (sprinklers, fire alarms and emergency lighting) are up to code and fully certified. If applicable, gather documentation related to Phase I Environmental Site Assessments (ESA).

Analyze recent lease transactions and active listings for comparable properties in your immediate submarket (considering age, location, and features).


Select Lease Structure: Gross Lease, Modified Gross Lease, or most common Net Lease + T.M.I variations. 

Determine price per SqFt or Gross price depending on the lease structure, estimate T.M.I. , lease term ( e.g. 1,3,5... years ), annual rent increases ( escalations ).

Notes:

• In Gross Lease, tenant pays a single all-inclusive rent amount, and landlord pays operating expenses.

• Modified Gross Lease means some of the operating expenses are passed on to the tenant. 

• Base Rent (Net) + Additional Rent ( T.M.I.) : Tenant pays base rent ( Net ) plus their proportionate share of property taxes, building insurance, and maintenance/common area expenses (CAM). This is the most common lease structure. 

Prepare marketing brochure, High-resolution photography and aerial drone shots if required.

Prepare floor plans and site layout diagrams and if required Property Feature sheet outlining building specifications, zoning, transit/highway access.


List Across Commercial Platforms

Conduct property tours 

Receive & Review Offers 

Perform Due Diligence on Tenant:

Financial statements (tax returns, profit & loss, balance sheets) or credit references, corporate structure, business experience. Most landlords will require personal guarantees, especially for new businesses.

Draft Commercial Lease Agreement. Some landlords have standard leases usually drafted by lawyers. If it exists, the tenant usually needs to sign the standard lease after an Agreement to Lease has been signed. Once all parties finish signing, the lease is executed. You can also choose to accept lease offers in standard commercial forms or other custom forms. 

Pay special attention to Key Clauses in the lease document: Permitted Use & Zoning Compliance, Maintenance & Repair Responsibilities, Assignment & Sublease Rights, Lease Improvements , default clauses and remedies.  Agreement to Lease document is legally binding, and it may be a good idea to have it reviewed  by the lawyer. Licensed Real Estate Agent in Ontario will always recommend legal documents to be reviewed by lawyers before you sign it. 

Right after signing, you collect deposits to secure a deal. Typically, the first and last month’s rent deposits are due the next business day, but deposits can be larger and, in some cases, will require a security deposit as well.

Pre-occupancy

Collect the tenant’s Certificate of Insurance (COI). Landlord should be  on the policy. Some landlords will require transfer of utility accounts (hydro, gas, water) to the tenant as per lease structure.

Deliver keys, access cards, key fobs.