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Miller Thomson - Leasing Times, July 2008
Key leasing phrases and topics to think about.
WHAT’S THE USE?
For more information on our Real Estate Practice
Group please click on the link below.
Do you review current zoning by-laws, especially applicable permitted
uses, before entering into a binding offer to lease or other lease
commitment? It is often overlooked. Even if your proposed use is
permitted, it may require additional parking spaces, costly building
code compliance and life safety upgrades. This can often arise where
there is a change of use from that of a previous tenant. If you are
proposing to lease office space in an office building, you would expect
your office use not to be an issue. Don’t be so sure. As part of your
due diligence process, take the time to review the applicable zoning
provisions and building code requirements for your proposed leased
premises. If you are entering into an offer to lease, make sure it is
conditional, not only on your use being permitted, but also on your
proposed plans receiving, at least, the tentative (preferably final)
approval from municipal officials. Without the appropriate prior due
diligence, a tenant could find its proposed use prohibited under
applicable zoning by-laws or find the cost of complying with applicable
codes and other requirements extremely costly. Avoid unpleasant
zoning surprises. Think about it.
Roberto Noce, Q.C.
Edmonton
[email protected]
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