The first surprise for most business owners leasing commercial space in Winnipeg isn't the rent — it's everything that gets added to it. Two spaces advertised at the same rate per square foot can differ by thousands of dollars a year once you understand what kind of lease each one is. Before you compare spaces, tour units, or sign anything, you need to know the difference between a gross lease, a net lease, and the triple net (NNN) lease that dominates Winnipeg's retail and industrial markets.
The Gross Lease: One Number, Few Surprises
Under a gross lease (sometimes called a full-service lease), the tenant pays a single all-inclusive rent, and the landlord covers most or all of the building's operating costs — property taxes, building insurance, and maintenance. You'll see gross leases most often in office buildings, where a landlord manages the whole property and builds those costs into the rate.
The appeal is predictability: one number, easy budgeting, few reconciliation surprises. The trade-off is that the landlord has priced those operating costs — plus a cushion — into your rent, and many gross leases include escalation clauses or "base year" provisions that pass through cost increases over time. Always ask what happens to your rent when the building's costs rise.
The Net Lease Family: Single, Double, Triple
A net lease shifts some of the building's operating costs from the landlord to the tenant, on top of base rent. How much shifts is what the "singles, doubles, and triples" describe.
In a single net lease, the tenant pays base rent plus a share of property taxes. In a double net lease, the tenant adds building insurance to that. And in a triple net (NNN) lease, the tenant pays base rent plus its proportionate share of property taxes, building insurance, and maintenance — essentially all of the property's operating costs.
Triple net is the most common structure in Winnipeg retail and industrial space, and it exists for a sensible reason: it lets the landlord quote a lower, cleaner base rent while tenants pay actual operating costs as they occur. But it means the advertised rate is only the starting point of your real cost.
Additional Rent and CAM: Where the Real Numbers Live
In a net lease, everything beyond base rent is usually grouped as additional rent, and the biggest component is CAM — common area maintenance. In a Winnipeg strip mall or industrial condo, CAM typically covers snow clearing (no small line item here), parking lot maintenance, landscaping, exterior lighting, property management fees, and repairs to shared systems.
Additional rent is normally estimated at the start of each year, charged monthly, and reconciled against actual costs at year end — meaning you can receive a bill (or a credit) months after the year closes. Before signing any net lease, get answers in writing to these questions: What exactly is included in CAM, and what is excluded? How is my proportionate share calculated? Are management or administration fees added on top, and at what percentage? Are major structural items — the roof, the parking lot replacement — recoverable from tenants or the landlord's cost? Is there a cap on how much CAM can increase year over year? And can I see the last two years of actual reconciliations for the property?
That last request is the single best reality check available to a prospective tenant. Past reconciliations show what tenants in that building actually paid — not what the brochure estimates.
Comparing Spaces: Always Use the All-In Number
Because lease structures differ, comparing base rents across listings is comparing apples to oranges. The only fair comparison is the all-in occupancy cost per square foot: base rent plus additional rent, using realistic (not promotional) estimates, plus utilities if they're separately metered. Run every space you're considering through that same calculation, over the same term, including scheduled escalations. A space that looks more expensive on the sign is sometimes the cheaper tenancy — and vice versa.
Why Lease Structure Matters to Landlords and Investors Too
If you're on the other side of the table — or thinking about buying a commercial property — lease structure is a value question, not just a cost question. A building full of well-documented triple net leases with strong tenants produces predictable net operating income, and predictable income is what commercial buyers pay for. If you want to see how that works, read our companion article on cap rates and NOI: the quality of a property's leases flows directly into what the property is worth.
Frequently Asked Questions
What does NNN mean in a commercial lease?
NNN stands for the three "nets" — property taxes, building insurance, and maintenance — that the tenant pays on top of base rent in a triple net lease. In practical terms, the tenant carries virtually all of the property's operating costs for their proportionate share of the building.
Is a gross lease better than a triple net lease?
Neither is inherently better — they price the same costs differently. A gross lease trades a higher, predictable rent for simplicity; a net lease trades a lower base rent for variable additional rent. What matters is the all-in cost, the cap and reconciliation terms, and which structure fits how your business budgets.
Can commercial lease terms be negotiated in Winnipeg?
Yes — far more than most first-time tenants assume. Base rent, tenant improvement allowances, fixturing periods, CAM caps and exclusions, renewal options, and assignment rights are all negotiable, and your leverage is greatest before you sign. Have every commercial lease reviewed by a lawyer, and negotiate with representation on your side of the table.
Before You Sign a Commercial Lease in Winnipeg
I help Winnipeg business owners find the right space and negotiate lease terms that protect them — including the additional-rent details that only show up after signing if nobody asked. I've completed the CCIM Institute's full curriculum in financial analysis, market analysis, and investment analysis for commercial real estate, and I bring that training to every lease and every negotiation.
Mark Goldade, CD — REALTOR®
Mark Goldade Personal Real Estate Corporation · Royal LePage Prime Real Estate
1877 Henderson Highway, Winnipeg, Manitoba R2G 1P4
Cell 431-306-2240 · Office 204-989-7900 · mark@goldaderealtor.com
This article is general information, not legal or financial advice. Lease terms vary — have your lawyer review any lease before you sign.