Insights · Lease
How to Price Retail or Office Space.
A practical guide for retail and office landlords in Ontario and Alberta on how to set a defensible asking rent, structure tenant incentives, and avoid the most common pricing mistakes.
Net Rent vs Net Effective Rent
Price what tenants
actually pay.
Net rent is the base rent paid to the landlord excluding operating costs (TMI — taxes, maintenance, insurance). Net effective rent is the net rent minus any tenant incentives expressed on an annualised basis. Tenants compare net effective rents across competing spaces, not face rents — structure your pricing accordingly.
A $30/SF face rent with 3 months free rent on a 5-year term is a $28.50/SF net effective rent. A competing space at $29/SF with no free rent is actually more expensive. Understanding this distinction prevents landlords from over-incentivising and tenants from misreading competing offers.
Retail Pricing Factors
What drives
retail rents.
Traffic count and pedestrian flow, anchor co-tenancy, parking ratio, visibility and signage rights, unit frontage and depth, and the tenant mix of the centre or corridor. Inline retail rents are primarily driven by traffic and co-tenancy. Pad sites and drive-through-capable units command a premium for accessibility and visibility.
Office Pricing Factors
What drives
office rents.
Building class and quality of common areas, parking ratio and cost, proximity to transit, floorplate efficiency, natural light and ceiling height, and building management responsiveness. Toronto and Calgary office markets have diverged significantly since 2020 — establish current market rents with a transaction broker before setting your asking rent.
Insights · Lease
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take action?
Speak directly with Lucero Commercial Group. All enquiries are treated as confidential.
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Not sure how to price your space? Lucero can advise and list for you.
Or call directly: +1 (647) 720-8998 · RECO Licensed Ontario · RECA Licensed Alberta
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