Leasing commercial space in Vernon

Lease types, from gross to triple net

Commercial leases are described by who pays the building's operating costs. The label is a shorthand; the lease itself decides. Two "triple-net" leases in the same plaza can put very different costs on the tenant.

Even in a triple-net lease, landlords usually keep responsibility for structural and capital items such as the roof membrane, foundation and parking lot replacement, though many leases let them recover a share of capital costs over time. Read the definitions of "operating costs" and "capital" before anything else.

For a province-wide explainer on lease structures, see Commercial Real Estate Group. This page focuses on what matters in Vernon.

What "additional rent" really covers

Additional rent, also called operating costs, CAM or "TMI" (taxes, maintenance and insurance), is quoted per square foot per year and adjusted annually. It typically includes:

• Property tax. Vernon's 2026 business-class municipal rate rose 9.34%, about $884 more on a $1 million assessment, and in a net lease that increase flows straight to tenants. See taxes on commercial property.
• Building insurance. Ask for the actual premium and the deductibles; some leases make tenants share deductibles after a claim.
• Common area maintenance: snow clearing (a real line item in a Vernon winter), landscaping, parking lot sweeping and lighting, shared utilities, janitorial for common areas, and repairs.
• Management or administration fee, often a percentage of operating costs or of gross rent.

Additional rent is estimated at the start of each year, paid monthly, then reconciled against actual costs after year end. A tenant can get a bill, or a credit, months later.

Triple-net cost estimator

What will this space really cost?

Building leasable area (sq ft)

Your unit (sq ft)

Base rent ($ per sq ft per year)

Use the rate in your offer or listing. Ask Sean for comparables.

Building property tax ($ per year)

Building insurance ($ per year)

CAM: maintenance, snow, landscaping, common utilities ($ per year)

Management / admin fee ($ per year)

Other recoverable costs ($ per year)

Add 5% GST?Yes, landlord is GST-registeredNo

Estimate my cost

Enter the building and unit sizes.

The default figures are illustrations, not Vernon averages. No reliable public source publishes Vernon lease or operating-cost rates, and we will not invent one. Replace them with the landlord's actual budget.

The clauses that matter most

1. Use clause and exclusivity. Make the permitted use broad enough for your business to evolve, and confirm it matches the Bylaw 6000 zone. In a plaza, ask for an exclusive so the landlord can't lease next door to a direct competitor.
2. Term and renewal options. Options to renew protect the goodwill you build. Pin down how renewal rent is set, whether at fair market or a fixed increase.
3. Operating cost definitions and caps. Exclude capital replacements, leasing commissions, the landlord's financing and costs covered by insurance. Ask for a cap on controllable cost increases and audit rights.
4. Tenant improvements and free rent. Who builds what, to what standard, and who owns it at the end. Fixturing periods matter when a buildout takes months.
5. Assignment and subletting. You will want to sell your business one day. The landlord's consent should not be unreasonably withheld.
6. Personal guarantee. Common for new businesses. Negotiate a limit in time or amount.
7. Demolition and relocation. In Uptown and Downtown, where the OCP encourages redevelopment to 16 storeys, a landlord may want the right to end the lease for redevelopment. Know the notice period and any compensation.
8. Restoration. What you must remove at the end, especially for restaurants and medical fit-outs.

Legal basics in BC

• Commercial tenancies are governed by BC's Commercial Tenancy Act and the lease itself. The Residential Tenancy Act does not apply, so there is no rent cap and far less statutory protection.
• A lease longer than three years, including renewal options, should be registered on title at the Land Title Office. Registration protects the tenant if the building is sold or refinanced. Leasing part of a parcel for more than three years can raise subdivision issues under the Land Title Act, with an exemption for leases of part of a building. Your lawyer will handle this.
• Some long-term leases trigger property transfer tax.
• Commercial rent is subject to 5% GST when the landlord is registered.

Background: Commercial Real Estate Group lease guides. Confirm legal points with a BC lawyer.

Vernon-specific leasing notes

• Airport land is leasehold only. Council approved a modernized standard lease template for new and renewed airport land leases on 25 May 2026. Existing leases continue until expiry. If you are buying a hangar, you are buying the lease term.
• The City leases space too. The 1,600 sq ft retail unit in the new Active Living Centre was leased to ODYNN Performance Therapy in September 2026.
• Check the licence before the lease. A City business licence takes about three weeks and depends on zoning. Make the lease conditional on obtaining your licence and any required permits.
• Vacancy data is thin. Neither the City nor the Chamber publishes a current commercial vacancy rate. Leasing comparables from recent deals are the only reliable guide to rent.

For landlords

If you own space in Vernon, the same clauses cut the other way: clean recovery of operating costs, a realistic management fee, sensible caps, and a use clause that protects your tenant mix. Annual reconciliations delivered on time keep good tenants. If a unit has sat empty, Sean can review the asking rent and the incentive package against recent deals and market it to the tenants who are actually searching.

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