An offer to lease translates a property opportunity into proposed business terms and a controlled path to occupancy. Its title does not determine whether it is binding, non-binding or partly binding. The wording, signatures, conditions, incorporated documents and conduct matter, so legal counsel should review the document before submission or acceptance—not only after the economics are agreed.
This is general information, not legal, tax, environmental, engineering, accounting or investment advice. Obtain advice specific to the property and transaction.
1. Identify the parties and premises exactly
State the proposed landlord, tenant, guarantor if any, premises, building, address, area basis, parking, storage, signage, common areas and other included rights. Identify a corporation by its correct legal name and confirm whether it exists or must be formed.
Attach or reference a legible premises plan. Ambiguous boundaries can affect rent, work, access, services and restoration throughout the term.
2. Describe the permitted use from the operation
Use a sufficiently precise description of the business, products or services, equipment, hours, deliveries, outdoor activity and ancillary uses. A broad label may not support municipal or landlord review, while an unnecessarily narrow clause can constrain a lawful evolution of the business.
Make municipal approval a separate evidence question. Landlord consent or a use clause does not create development, building, occupancy, health or business-licence approval.
3. Build one complete economic schedule
State base rent, rate units, area, additional rent, administration, utilities, percentage rent where relevant, deposits, prepaid amounts, security, inducements, parking, storage and taxes. Show commencement, escalation and payment timing.
Model the full term and first-year cash requirement. CRA treats commercial rent as generally taxable and explains that additional rent, inducements and leasehold improvements can have transaction-specific GST/HST consequences.
4. Separate term, possession, fixturing and rent commencement
Define when access begins, what work may occur, when the lease term starts and when each rent obligation begins. Identify dependencies on landlord work, permits, utilities, inspections and legal occupancy.
If dates move, specify which other dates move, notice requirements, outside dates and remedies. Possession for construction is not automatically permission to operate.
5. Define landlord and tenant work
Describe the condition in which the premises will be delivered and attach the landlord-work and tenant-work scopes. Address plans, approvals, standards, costs, allowances, reimbursement, change orders, delays, inspections, deficiencies, warranties and ownership.
An allowance is not the same as cash available at signing. Identify eligible costs, evidence, timing, prerequisites, set-off rights and what happens if the work costs less, more or is delayed.
6. Use conditions as executable decision paths
List legal review, municipal use, development or building approval, financing, franchisor, technical inspection, insurance and other dependencies. For each, specify beneficiary, evidence, access, deadline, satisfaction or waiver mechanics, notice and consequence.
A vague due-diligence label may not provide the access, deliverables or time required. Counsel should draft or review the condition standard and notice process.
7. Address operational rights and building controls
Include signage, parking, loading, access hours, security, utilities, HVAC, waste, deliveries, common areas, exclusivity or radius restrictions where relevant, rules and landlord services. Test each item against actual workflow.
Do not assume a marketing statement or tour comment becomes a lease right. Material commitments should appear in the executed document hierarchy.
8. Preserve future flexibility explicitly
Address renewal, expansion, contraction, first offer or refusal, assignment, sublease, change of control and permitted transfers according to the business plan. State dates, notice, rent-setting, conditions, consent, fees and continuing liability.
Words such as 'market rent' or 'subject to landlord approval' can leave important methodology or discretion unresolved. Counsel should assess whether the proposed right can actually be exercised.
9. State the document's intended legal effect
Do not assume an offer is non-binding because a later lease is contemplated. State which provisions are intended to bind, what remains subject to documentation, how acceptance occurs, expiry, counterpart and electronic-signature treatment, and what happens if the long-form lease is not completed.
RECA rules require written handling of offers and a written lease for leases arranged by a brokerage. Those brokerage rules do not determine every contract issue; independent counsel should advise each party.
10. Reconcile the offer into the lease
Create a term-by-term matrix showing where each accepted offer provision appears in the lease and schedules. Track changes, omissions, conflicts, defined terms and newly introduced obligations.
No payment, construction, possession, insurance or ordering step should occur on an assumed document status. Commercially can coordinate the commercial negotiation and information record; it does not determine legal effect or draft legal advice.
Primary sources
Verify the current rules.
Government and regulator pages can change. These links were reviewed on August 26, 2026.
RECA: Real Estate Act Rules↗City of Calgary: Opening a business↗City of Edmonton: Changes to existing buildings and sites↗CRA: Commercial real property—sales and rentals↗ISED: Canada Small Business Financing Program guidelines↗A real property decision?
Commercially can identify live Alberta options and coordinate the brokerage proposal process with independent counsel controlling legal advice.Who, how and why
Who: Commercially Research & Editorial.
How: Primary-source research and AI-assisted drafting were used to organize this guide around a practical commercial real estate decision. Source links, factual claims and material limitations were checked against Commercially's editorial standards on the review date.
Why: To help owners, buyers and tenants identify the records, questions and professional advice that belong in a real transaction work plan.
Editorial owner: Commercially Research & Editorial.
Commercial review: Slav Loban, Commercial Real Estate Division Leader.
Questions or corrections: hello@commercially.ca
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