Guide · Commercial Fit-Outs
The permit you need when you are not building anything.
Most people fitting out a commercial space assume the permit question follows the construction. On a change of use it is the other way round. You can need a permit to change what a building is used for while proposing no construction at all, and the lease is usually already signed by the time anyone finds out.
Two projects, same empty unit, completely different jobs
A shop moving into a unit that was a shop is one kind of project. A cafe moving into that same unit is another kind entirely, and the difference has almost nothing to do with the finishes or the floor area.
What separates them is whether the Building Code considers the new use more hazardous than the old one. That single question decides whether you are filing for interior alterations or for a change of use, which systems in the building get pulled into scope, and how much of the budget goes to things a tenant never sees.
We are not going to publish a cost per square foot for a fit-out we have not seen. The construction cost depends on what the landlord is handing over and what the use demands of the building. What we can publish, and what almost nobody does, is the fee and approval side, because those figures are in municipal by-laws and they are the part that catches people out.
The rule nobody expects
No construction does not mean no permit.
The Building Code Act, 1992 deals with changing a building’s use separately from building work. It is a short provision and it does a lot of work.
Section 10 of the Act requires a permit from the chief building official before the use of a building is changed, where “the change would result in an increase in hazard, as determined in accordance with the building code.” Municipalities apply it despite no construction or demolition being proposed.
So the trigger is not a hammer. The trigger is hazard. A business can take possession of a finished unit, change nothing physical, open the doors under a different use, and be operating without a permit it needed.
The flip side is just as useful. Where the new use does not increase the hazard, that permit is not engaged at all. Knowing which side of the line you are on is a question worth settling before the lease, not after, because it is the cheapest it will ever be to answer.
How hazard is decided
The Code sorts every building into an occupancy group.
Hazard is not a judgement call made on the day. The Building Code classifies major occupancies into groups, and a change between groups is what usually puts a project into change of use territory. The classification table reads like this.
Group A, assembly
Four divisions, covering performing arts venues, assembly not classified elsewhere, arena-type assembly and assembly in the open air. A restaurant, a bar, a gym, a place of worship and a banquet room all live here. This is the group most retail conversions move into, and it is the one that asks the most of a building.
Group B, care and detention
Three divisions: detention, care and treatment, and care. Anything where occupants cannot be relied on to evacuate themselves. A day nursery or a retirement use sits here, and the requirements are the most demanding in the Code outside high hazard industrial.
Groups D and E, business and mercantile
Group D is business and personal services, so offices, clinics, salons and studios. Group E is mercantile, so retail. Most main street units in Cobourg and Port Hope are one of these two, and a move between them is the mildest version of this problem.
Group F, industrial
Three divisions by hazard: F1 high, F2 medium, F3 low. A warehouse, a workshop and a light manufacturing unit are graded by what is stored and what is done in them. Group C, residential, sits alongside all of these and matters here mainly in mixed-use buildings with apartments above a shop.
The practical read. Retail to retail is usually within Group E and usually straightforward. Retail to restaurant crosses from mercantile into assembly, and that is the conversion that brings exits, washroom fixture counts, ventilation and fire separations into the conversation whether or not you intended to touch them. Office to day nursery crosses into Group B, which is a bigger step again.
What comes into scope
Where the hazard rises, the building has to answer for it.
Once a change of use is in play, these are the parts of an existing building that commonly need upgrading, and they are the parts a fit-out budget built around finishes does not contain.
Structural capacity for a heavier occupancy load. Demising walls and fire separations between units. Exits, exit widths and door hardware. Washrooms and the number of plumbing fixtures the use requires. Ventilation and mechanical capacity. Exit signs and emergency lighting. In some cases a fire alarm system where the building did not previously need one.
None of those are visible to a customer. All of them are capable of being the largest single line in a fit-out, and the one that most often turns a fixed budget into a moving one is the washroom fixture count, because it can mean new drainage in a slab.
This is also the reason accessibility is part of the conversation. Barrier-free design requirements apply to the work being done, and a change of use is the moment a building’s entrance, washroom and circulation get looked at against the current Code rather than the one in force when it was built.
The part that protects you
Part 11 exists so old buildings are not held to new-build rules.
If a change of use meant bringing an 1870s main street building up to the standard of a new one, nothing on a heritage main street would ever change hands. The Code anticipates that. Part 11 is the part of the Building Code written for renovation and change of use in existing buildings, and understanding roughly how it works tells you what your designer is actually arguing for.
It runs on a comparison. The existing building’s classification, area and storeys are recorded. Where the major occupancy changes, the existing and proposed uses are indexed for hazard and the building is indexed for construction, and the two are compared.
Work is then classified as a basic or an extensive renovation. If the result reduces the building’s performance level, whether through a change in major occupancy, an increased occupancy load, or changes to plumbing, then compensating construction has to make up the difference.
And where full compliance is impractical in an existing building, the Code allows compliance alternatives, which are formally proposed and numbered rather than negotiated informally. That is the mechanism that makes a sensible fit-out possible in an old building, and it is why the designer you use on a change of use matters more than the one you use on a new unit in a plaza.
The fees nobody prices in
What the paperwork costs in Cobourg.
These are published figures rather than estimates, which is why they are worth putting in front of you. Confirm the current schedule with the Town before you budget from them, because fee by-laws are updated and indexed.
Building permit fees, Town of Cobourg by-law 072-2019
Basic renovation, interior layout changes only: $0.40 per square foot, minimum $200
Complex renovation, life safety systems, HVAC or fire separations: $0.93 per square foot, minimum $500
Change of use to Group C, D, E or F: $0.44 per square foot, minimum $200
Change of use to Group A or B: $0.47 per square foot, minimum $350
Alternative solution: $500 flat
Read those four lines together and the Code’s view of your project is visible in the fee schedule itself. Moving into assembly or care costs more per square foot to permit than moving into retail, business or industrial, and work that touches life safety costs more than twice what a layout change does.
Planning fees, 2026 schedule, Town of Cobourg by-law 064-2025
Zoning by-law amendment, site specific: $7,725
Minor variance, other than minor residential: $2,060
Site plan amendment, other: $7,000
Site plan amendment: $8,240
Removal of a holding symbol: $1,600
Fourth submission and over, site plan: $2,000 each
That last line is the one worth staring at. Resubmissions are charged from the fourth onward, which prices the cost of drawings that do not land first time. It is also the strongest argument there is for settling the zoning and occupancy questions before a designer starts work rather than after.
The one to check before signing
Development charges, and the conversion that can attract them.
Development charges are what a municipality levies on development to pay for the services growth demands. On the non-residential side in Cobourg they are charged per square foot of gross floor area, calculated and collected at building permit issuance, and indexed every 1 January.
A fit-out inside an existing building adds no gross floor area, which is the reason most tenants never think about this. For a straightforward interior project that instinct is usually right.
Here is the case to check. Cobourg’s own fee schedule charges commercial and institutional development while stating that development charges do not apply to industrial development in the Existing Urban Service Area. So converting an industrial building to a commercial use is a change in the category the by-law treats differently, on floor area that already exists.
Whether that conversion attracts a charge on the existing floor area is not answered in the Town’s public development charges brochure, and it is not answered in the 2025 by-law amendment either. It is settled by the by-law itself and by the Treasurer’s office, and it is a question worth asking before a lease is signed rather than at permit stage, because the answer is measured in dollars per square foot across the whole unit.
Two related points while you are asking. Industrial enlargements of less than 50% of an existing building’s gross floor area are exempt, and above 50% the charge applies only to the portion beyond that threshold. And a redevelopment credit for what was there before is only available where a demolition permit was issued less than five years before the new building permit.
Before the Code matters at all
Zoning decides whether the use is allowed in the first place.
Everything above assumes the use is permitted. That is a separate question from the Building Code and it comes first, because no permit is issued for a use the zoning by-law does not allow on that property.
Commercial zones list permitted uses specifically, and the list is narrower than people expect. A unit zoned for retail is not automatically available for a restaurant, a brewery, a gym, a clinic or a day nursery. Parking requirements are attached to the use as well, so a use change can create a parking shortfall on a site that was compliant the day before.
Where the use is not permitted, the routes are a zoning by-law amendment or, for a smaller deviation, a minor variance through the Committee of Adjustment. Both are public processes with notice and a hearing, and both have the fees listed above attached to them.
Site plan control is the third possibility. Where a project changes anything about the site rather than the inside of the building, parking layout, loading, access, drainage or landscaping, site plan approval or an amendment to an existing approval can be required alongside the building permit.
The commercial reality
The rent clock usually starts before the permit does.
This is what makes a commercial fit-out different from a house. A homeowner waiting on an approval is inconvenienced. A business waiting on one is paying rent on a space it cannot trade from, and often servicing equipment deposits and staff commitments at the same time.
Which means the order of operations is the thing that protects the budget, and it runs opposite to how most fit-outs actually start. The usual sequence is sign the lease, hire a designer, draw the space, then discover the occupancy classification, the parking shortfall or the fixture count.
Three questions answered before signing change the whole position. Is this use permitted on this property under the zoning by-law. Does the move cross an occupancy group. And what is the landlord actually delivering, because base building, shell and a previous tenant’s leftover fit-out are three very different starting points.
None of those require a designer or a fee. They require someone reading the by-law and looking at the unit. That is the cheapest hour anyone spends on a commercial fit-out.
What to ask before you sign anything
Four questions, whoever you end up using. Is the price fixed or an estimate, and what specifically would change it. Has anyone confirmed this use is permitted by the zoning by-law on this property. Does this move cross an occupancy group, and if it does, which systems does that bring into scope. And who is applying for the permits and approvals, and which of them does this scope actually pull in.
A builder who answers all four in writing is telling you how the job will actually run. We have been building across Northumberland County since 1999, commercial work included, all trades in house, on fixed-price contracts.
Frequently Asked Questions
Do I need a permit to change the use of a commercial building in Ontario?
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You do where the change would increase the hazard. Section 10 of the Building Code Act, 1992 requires a permit from the chief building official before a building’s use is changed where, in the words of the Act, the change would result in an increase in hazard as determined in accordance with the building code. Municipalities apply that despite no construction or demolition being proposed, so a business can need this permit while planning no building work at all.
Can I open a restaurant in a unit that was a shop?
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Often yes, but it is a change of use rather than a simple fit-out. Retail sits in Group E, mercantile, and a restaurant sits in Group A, assembly. Crossing between major occupancy groups is what usually brings exits, washroom fixture counts, ventilation and fire separations into scope whether or not you intended to touch them. The zoning by-law is the separate first question, because a unit zoned for retail is not automatically available for a restaurant.
What are the Ontario Building Code occupancy groups?
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Group A is assembly, in four divisions covering performing arts, other assembly, arena-type assembly and assembly in the open air. Group B is care and detention, in three divisions. Group C is residential. Group D is business and personal services. Group E is mercantile. Group F is industrial, graded F1 high hazard, F2 medium and F3 low. The classification is set out in the Code’s major occupancy table, and the current edition is the 2024 one.
What does a change of use permit cost in Cobourg?
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Under Town of Cobourg by-law 072-2019 the building permit fee for a change of use to Group C, D, E or F is $0.44 per square foot with a $200 minimum, and to Group A or B it is $0.47 per square foot with a $350 minimum. A basic renovation covering interior layout changes only is $0.40 per square foot with a $200 minimum, and a complex renovation involving life safety systems, HVAC or fire separations is $0.93 per square foot with a $500 minimum. Confirm the current schedule with the Town, because fee by-laws are updated.
Do development charges apply to a commercial fit-out?
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A fit-out inside an existing building adds no gross floor area, and Cobourg charges non-residential development per square foot of gross floor area at building permit issuance, so for a straightforward interior project the question usually does not arise. The case worth checking is a conversion between categories the by-law treats differently. Cobourg’s schedule charges commercial and institutional development while stating that charges do not apply to industrial development in the Existing Urban Service Area, so an industrial to commercial conversion is a question for the Treasurer’s office before a lease is signed.
What is Part 11 of the Building Code?
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Part 11 is the part written for renovation and change of use in existing buildings, so that an older building is not held to the standard of a new one. It records the existing building’s classification, compares hazard and construction indices where the major occupancy changes, classifies the work as a basic or extensive renovation, and requires compensating construction where the building’s performance level would be reduced. Where full compliance is impractical it allows formal compliance alternatives, which are proposed and numbered rather than negotiated informally.
Does a change of use trigger accessibility upgrades?
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Barrier-free design requirements apply to the work being done, and a change of use is the point at which an existing building’s entrance, washrooms and circulation get assessed against the current Code rather than the one in force when it was built. How far that reaches depends on the scope and on what Part 11 allows for the building, which is exactly the kind of question a compliance alternative exists to answer.
Do I need site plan approval for a commercial fit-out?
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Not for work confined to the inside of the building. Site plan control engages where something about the site changes, so parking layout, loading, access, drainage or landscaping. Where it applies you may need site plan approval or an amendment to an existing approval alongside the building permit. Cobourg’s 2026 schedule under by-law 064-2025 prices a site plan amendment at $7,000 for the other category and $8,240 for an amendment, with resubmissions charged at $2,000 each from the fourth onward.
What if the zoning does not permit the use I want?
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The routes are a zoning by-law amendment or, for a smaller deviation, a minor variance through the Committee of Adjustment. Both are public processes involving an application, notice and a hearing. On Cobourg’s 2026 schedule a site specific zoning by-law amendment is $7,725 and a minor variance other than minor residential is $2,060. Parking is worth checking at the same time, because requirements attach to the use and a change can create a shortfall on a site that complied the day before.
What should I settle before signing a commercial lease?
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Three things, and none of them need a designer or a fee. Whether the use you intend is permitted on that property under the zoning by-law. Whether the move crosses an occupancy group, because that decides which building systems come into scope. And exactly what the landlord is delivering, since base building, bare shell and a previous tenant’s leftover fit-out are three very different starting points. The rent clock usually starts before the permit does, which is what makes the order of operations worth more than the finishes.
Looking at a commercial space?
Tell us the address, what it was used for, and what you want to use it for. Those three answers decide most of the project, and we will come back with a fixed price.
Keep reading
For what we build and how the work runs, see commercial construction. If the building is designated, read heritage permits in Port Hope, because a main street conversion often involves both at once. If the project extends the building rather than fitting out the inside of it, see what an addition costs. On a site without municipal services, septic and wells. We work across Cobourg, Port Hope and Clarington, and the rest of the guides are here.