REALWorld Law

Commercial leases

Alterations

Is the tenant permitted to alter or improve the real estate and, if so, what conditions can be imposed on such works?

Canada

Canada

The tenant’s right to alter the leased property is defined in the lease terms. Structural alterations are frequently prohibited, particularly where the tenant only leases part of the building. Non-structural alterations normally require the landlord's consent. Many leases deem improvements to become the property of the landlord on installation, but reserve the right for the landlord to require those improvements to be removed by the tenant at its cost on termination of the lease.