TRENDING: Bank Of Canada Holds Interest Rate At 2.25% In July

Net Lease

Understand net leases in Canadian commercial real estate: how they work, what tenants pay, and why they matter to landlords and investors.

Net Lease

June 16, 2025


What is a Net Lease?

A net lease is a type of commercial lease where the tenant pays base rent plus one or more additional operating expenses such as property taxes, insurance, or maintenance.

Why Net Leases Matter in Real Estate

In Canadian commercial real estate, net leases shift certain property expenses to tenants, reducing financial responsibility for landlords while offering predictable occupancy costs.



Common types of net leases:
  • Single Net (N): tenant pays property taxes
  • Double Net (NN): tenant pays taxes and insurance
  • Triple Net (NNN): tenant pays taxes, insurance, and maintenance



Net leases are popular in retail and industrial spaces and are often used for long-term leases with corporate tenants.



Understanding net lease structures helps both landlords and tenants negotiate fair, transparent agreements aligned with investment goals.

Example of a Net Lease in Action

The tenant signs a triple net lease, agreeing to cover all property taxes, insurance premiums, and maintenance for the warehouse space.

Key Takeaways

  • Tenant pays rent plus property expenses
  • Varies by number of responsibilities (N, NN, NNN)
  • Common in retail, industrial, and office leases
  • Reduces landlord risk and costs
  • Requires detailed agreement documentation

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Bank Of Canada Holds Interest Rate At 2.25% In September

Bank Of Canada Holds Interest Rate At 2.25% In September

The Bank of Canada left its target for the overnight rate untouched at 2.25% on September 2, keeping the Bank Rate at 2.5% and the deposit rate at 2.20%.

Governing Council held, with the economy and inflation evolving broadly as forecast in July. The backdrop, though, has moved: long-term bond yields are up both globally and in Canada, financial conditions have tightened, and the Canadian dollar has ticked up slightly on US-dollar weakness.

Keep ReadingShow less
TRENDING: Bank Of Canada Holds Interest Rate At 2.25% In July

Moving Day: August 2026 Industry Hires And Promotions

Moving Day: August 2026 Industry Hires And Promotions

From left: Matthew Warzecha, Activia; Dazle Gumabao, Marcon; Josh Kirles, CMHC; Jerry Nguyen, JD, Concert Properties; David Gu, GWL Realty Advisors; Marie Gillespie, Cushman & Wakefield

We know you like to know what's up.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in August 2026:

Keep ReadingShow less

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

CLV Group Buys Ashcroft’s ReStays Hotel, Unsold Condos Under Receivership

The reStays and reResidences at 101 Queen Street and 108-116 Sparks Street in Ottawa. (TD Cornerstone and Cushman & Wakefield)

The ReStays Ottawa boutique luxury hotel in downtown Ottawa and a block of unsold ReResidences condos have officially been sold as part of a court-ordered sale, according to filings in Ontario Superior Court.

The ReStays Ottawa and ReResidences are located at 101 Queen Street and 108-116 Sparks Street, and consists of 111 hotel suites, 91 condo units, and just over 21,000 square feet of retail space across a six- and 17-storey building, all above an underground parkade.

Keep ReadingShow less

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

No Motor, No Traffic, No Problem: Floating Cottage 'Ursula' For Sale In Port Dover

Ursula/Facebook Marketplace

And if you've ever sat in gridlock on the way to a cottage and wondered why the whole system couldn't just be different, meet Ursula.

This 14.5' x 45' floating cottage is currently moored at Port Dover marina, and is listed on Facebook Marketplace for $39,000. In the listing, the seller describes Ursula as "a sturdy girl."

Keep ReadingShow less

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

When Low-End Rents Get Harder To Afford, Homelessness Climbs: Study

Hamilton, Ontario. (Destination Ontario)

It may not be shocking to hear that cities with high rents and low vacancy rates are also seeing an increase in homelessness, but correlation is not causation. But now, a recent study is pointing to causation.

The research was conducted by the Canadian Alliance to End Homelessness (CAEH), who said it was the first study of its kind in Canada, and that their research “demonstrates a clear link between housing affordability, vacancy rates, and increasing homelessness.”

Keep ReadingShow less

BILD: Single-Family Homes Lead GTA New Home Sales In July

BILD: Single-Family Homes Lead GTA New Home Sales In July
Toronto at dusk with city light and urban skyline with skyscrapers

There are two wolves inside the GTA's new home market, and for now, it's single-family homes that are being fed.

According to the latest from BILD, single-family sales just posted their fourth consecutive month above the 10-year average. Condos, meanwhile, are still locked out of most of the benefit.

Keep ReadingShow less

Downtown Eastside Project Breaks Ground With Funding From Feds, BC Builds, UBC

Downtown Eastside Project Breaks Ground With Funding From Feds, BC Builds, UBC

The 11-storey building set for 315 Main Street (172 E Cordova Street) in the Downtown Eastside of Vancouver.

A new mixed-use development is now under construction in Vancouver’s Downtown Eastside, thanks in large part to funding and contributions from four different governments in conjunction with those from several other parties.

The project is set for 315 Main Street (also known as 172 East Cordova Street), a corner lot located at the southwest corner of the intersection of Main Street and East Cordova Street.

Keep ReadingShow less

City Of Toronto Breaks Ground On Dundas And Ossington Mass-Timber Rentals

City Of Toronto Breaks Ground On Dundas And Ossington Mass-Timber Rentals

1113–1125 Dundas St W at Dundas and Ossington, prior to construction (Google Maps)

A surface parking lot at Dundas Street West and Ossington Avenue is officially a construction site.

The City of Toronto, CreateTO and the federal government marked the start of construction at 1113–1125 Dundas Street West on Monday; the rent-controlled rental building rising at the intersection will bring 74 new homes to Trinity-Bellwoods.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.