Retail and office pricing is more complex than industrial because demand is more fragmented, tenant quality varies widely, and the relationship between location, traffic and rent is highly non-linear. Getting pricing right is the difference between a 30-day lease and a 12-month vacancy.

Retail Pricing Inputs

Retail rent is primarily a function of traffic — pedestrian counts, vehicle counts and proximity to anchor tenants. A unit adjacent to a national grocery anchor commands a meaningful premium over an equivalent unit in an unanchored plaza two blocks away. Secondary factors include unit size (smaller inline units typically achieve higher PSF rents), visibility, and the permitted use restrictions in the lease.

Current retail net rents in Mississauga and GTA suburban markets are running $22–$38/SF NNN for quality inline units in anchored centres. Strip plaza units in secondary markets are in the $18–$28/SF range. Know your submarket before setting an asking rent.

Office Pricing Inputs

Office pricing is driven by building class, floor level, parking ratio and proximity to transit. Class A downtown Toronto office is pricing at $28–$38/SF gross. Suburban GTA Class B is in the $18–$26/SF gross range. Calgary's downtown is softer — quality Class A space is available in the $20–$28/SF range with significant landlord incentive packages.

The Gross vs Net Distinction

Office leases are typically gross or semi-gross — the landlord pays operating costs. Retail and industrial leases are almost always net — the tenant pays a pro-rata share of taxes, insurance and maintenance on top of base rent. Make sure you are comparing like to like when benchmarking asking rents.

Tenant Improvement Allowance

TI allowance is part of the pricing equation, not a separate negotiation. A space offered at $26/SF net with $40/SF TI is a different economic proposition than $24/SF net with $20/SF TI. Model the effective rent — the all-in landlord economics after incentives — not just the headline rate.

Lucero's Approach

Lucero benchmarks every retail and office mandate against current closed transactions before recommending an asking rent. The goal is to price the space to attract genuine competition — not to set a number that sounds right and then negotiate down.