What a BC commercial lease agreement is for
British Columbia regulates residential tenancies closely, but commercial tenancies are left almost entirely to the parties. There is no standard form, no tribunal and no rent control. What the lease says about rent, operating costs, repairs, default and renewal will decide almost every dispute. A handful of BC statutes still matter: the Rent Distress Act lets a landlord seize goods for unpaid rent, the Law and Equity Act lets a tenant ask for relief from forfeiture, the Commercial Tenancy Act deals with overholding tenants, the Builders Lien Act governs liens for the tenant's improvements, and the Land Title Act affects leases of more than 3 years.
This template is a complete BC triple net lease with a semi-gross option. It covers basic terms, a fixturing period, Basic Rent with GST, Operating Costs and Property Taxes with exclusions and an audit right, use and permits, utilities, HVAC and repairs, alterations and builders liens, insurance including earthquake coverage, damage, assignment, default and remedies, an indemnifier, subordination, holding over, land title matters and renewal at fair market rent.
When to use it
Use it to lease a retail unit, restaurant space, office suite, clinic or light industrial bay anywhere in BC, for a term of three to ten years. Landlords can adopt it as a standard lease, and tenants can use it to measure a landlord's draft against a balanced, BC-specific document.
It is not designed for shopping centre leases with percentage rent, ground leases, farm leases, or mixed premises where part of the space is a residence covered by the Residential Tenancy Act. Strata lot owners leasing a commercial strata unit should also check the strata corporation's bylaws on leasing.
What's inside
The full list of sections and fields in this template, in the order they appear.
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Basic terms and premises
- Development and PID
- Unit and rentable area
- Proportionate Share
- Term and Fixturing Period
- Rent
- Deposit
- Use
- Renewal
- GST numbers
- Condition
- Measurement
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Term and rent
- Fixturing Period
- Possession delay
- Monthly Basic Rent
- GST and no PST
- Late interest
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Additional Rent
- Triple net or semi-gross
- Operating Costs
- Exclusions
- Property Taxes
- Reconciliation and audit
-
Use, utilities and repairs
- Permitted use and continuous operation
- Business licence and permits
- WorkSafeBC and codes
- Exclusive use
- Environmental
- Utilities
- HVAC
- Repairs
-
Alterations and liens
- Consent
- Builders Lien Act holdback
- Cancellation of liens
- Landlord's notice of interest
- Signs
- Removal
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Insurance, casualty and transfers
- Tenant and Landlord insurance including earthquake
- Releases
- Indemnities
- Damage and abatement
- Assignment and recapture
-
Default and indemnifier
- Events of default
- Re-entry
- Rent Distress Act
- Accelerated rent
- Highway Properties damages
- Relief from forfeiture
- Indemnity of Tenant's obligations
-
Land title and general terms
- Section 73 subdivision approval
- Registration
- Subordination and estoppel
- Holding over
- Surrender
- Quiet enjoyment
- Force majeure
- Renewal
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Schedules A to E
- Plan
- Basic Rent with GST
- Landlord's and Tenant's Work
- Rules
- Addresses
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Pre-Signing Checklist
- 8 checks before signing
Preview pages
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Page 1 -
Page 2 -
Page 3
How to complete the lease
- Fill in the basic terms. Use names exactly as in the BC Registry, the PID and legal description, unit, area, term, fixturing period, deposit, use and renewal.
- Check land title rules. For a term over 3 years including renewals, confirm the section 73 exemption or approval, and decide whether the tenant will register.
- Complete Schedule B. Rent per square foot, monthly rent and GST for each year.
- Choose net or semi-gross. Keep the exclusions and set the management fee.
- Set use, hours and any exclusive.
- Define the work. Landlord's Work, Tenant's Work and any allowance in Schedule C.
- Confirm insurance and indemnity terms. Include earthquake coverage, and decide whether to cap the indemnity.
- Sign. Witness the indemnifier's signature and collect insurance certificates before the fixturing period.
Example: a café in Victoria
A fictional landlord, Fernwood Corner Holdings Ltd., leases a 1,200-square-foot ground floor unit in a mixed commercial building in Victoria to Tidepool Coffee Ltd. for five years from April 1, 2026, with the owner, Ji-woo Park, as indemnifier.
Basic Rent, year 1: $32.00 per sq. ft. = $38,400 a year, $3,200 a month, plus GST of $160. Additional Rent estimate: $16.50 per sq. ft. = $1,650 a month, plus GST. Fixturing Period: 60 days from February 1, 2026. Allowance: $24,000 plus GST, paid after opening, once the 55-day Builders Lien Act holdback period has passed without liens. Section 73: a lease of part of a building, so subdivision approval is not needed; Tidepool registers a short form because its term with renewal is 10 years.
British Columbia rules to know
- No standard commercial form. The Residential Tenancy Act does not apply.
- GST, not PST. 5% GST on rent; PST does not apply to the rent of real property.
- Distress (Rent Distress Act). Seizure of goods for arrears, but not after termination.
- Relief from forfeiture (Law and Equity Act section 24). Available to tenants facing termination.
- Overholding (Commercial Tenancy Act). A procedure for recovering possession from a tenant who stays after the lease ends.
- Builders liens. 10% holdback; liens filed within 45 days; landlords can file a notice of interest.
- Land Title Act. Leases of part of a parcel over 3 years may need approval; unregistered leases over 3 years may not bind buyers.
Clauses that cause BC lease disputes
The BC commercial disputes that reach court tend to involve the same clauses. A vague Operating Costs definition lets a roof replacement or a seismic upgrade flow straight through to tenants. A landlord seizes goods after already terminating the lease, which the law does not allow. A 10-year lease is never registered, and the property's new owner refuses to honour it. A renewal clause says "at a rent to be agreed" and fails for uncertainty. A tenant's contractor goes unpaid and liens the building. The cost exclusions, default section, land title section, renewal method and lien provisions in this lease address each of them.
Frequently asked questions
Is there a standard commercial lease in BC?
No. BC's mandatory residential tenancy agreement does not apply to commercial premises, and there is no government commercial form. The lease is negotiated, and the common law, the Commercial Tenancy Act, the Rent Distress Act and the Law and Equity Act fill the gaps.
Is GST or PST charged on commercial rent in BC?
GST at 5% applies to commercial rent and additional rent when the landlord is registered. BC's PST does not apply to the rent of real property, although it can apply to some goods and services the landlord supplies separately.
Can a BC commercial landlord seize a tenant's goods?
Yes, for unpaid rent, by distress under the Rent Distress Act, usually through a bailiff, following the Act's procedure. The landlord cannot distrain after it has terminated the lease, and a wrongful seizure can make it liable for damages.
Does a BC commercial lease need to be registered?
It does not have to be, but a lease for more than 3 years that is not registered may not bind a later buyer of the property, so tenants with longer terms or major improvements usually register the lease or a short form. A lease of part of a parcel for more than 3 years may also need subdivision approval unless an exemption, such as for part of a building, applies.
Who is responsible for property taxes in a BC commercial lease?
In a triple net lease, the tenant pays its share of the property taxes along with operating costs. Because BC commercial taxes follow assessed land values, they can be a large part of the tenant's occupancy cost, especially in Metro Vancouver.
