Question 1

What is TMI in commercial real estate?

Accepted Answer

TMI stands for Taxes, Maintenance, and Insurance. It is an additional cost on top of base rent in a commercial net lease, covering property taxes, common area maintenance, and building insurance. TMI is quoted per square foot per year.

Question 2

How do you calculate total occupancy cost for a commercial lease?

Accepted Answer

Total occupancy cost = (Base Rent per sq ft + TMI per sq ft) × Square Footage. This gives you the annual cost, which you can divide by 12 for monthly. HST (13%) is also applicable in Ontario.

Question 3

What is a net lease vs. gross lease?

Accepted Answer

In a net lease, the tenant pays base rent plus TMI (taxes, maintenance, insurance) separately. In a gross lease, the landlord includes these costs in the rent. Most commercial leases in the GTA are net leases.

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