What's a typical lease term in Toronto?

10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.

How is rent quoted in Toronto?

In CAD/sqft/year. We also publish a USD-normalised view ($57/sqft/yr) for cross-market comparison.

Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI).

Typical lease length: 10 years.
Typical rent-free: 18 months.
Vacancy: 17.6%; trend flat.
Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI).

Toronto office lease norms

Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI).

TL;DR

Typical lease length: 10 years.
Typical rent-free: 18 months.
Vacancy: 17.6%; trend flat.
Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI).

Structure

Net leases — tenant pays a base rent plus a proportional share of operating expenses, realty taxes, and utilities (TMI). Rent-free of 12-24 months on a 10-year term is current market. Bank guarantees common for non-investment-grade covenants.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

city	Toronto
country	Canada
region	Americas
classARentLocal	78 CAD/sqft/yr
classARentUsd	$57/sqft/yr
vacancy	17.6%
typicalLeaseYears	10
typicalRentFreeMonths	18
submarkets	6
primeYieldPct	5.5%

Frequently asked questions

What's a typical lease term in Toronto?: 10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Toronto?: In CAD/sqft/year. We also publish a USD-normalised view ($57/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction