Businesses that rent their operating space may have more than one type of rental option available to them. Therefore, before you lease commercial real estate or renew your current rental agreement, take a moment to familiarize yourself with some of the different types of commercial tenancies. Gross Value You may be able to lease commercial real estate with an agreement that covers most of the expenses involved in operating a property. A gross value lease gives you the benefit of a totally maintained property, and you won’t have to worry about logistics or expenses. Net Value In a net value lease agreement, you have to pay for most or all of the expenses of day-to-day management. For many businesses, this makes sense because they have to make considerable alterations to a property to use it the way they need to. Split Value It is common to lease commercial real estate in a way that splits property upkeep between landlords and tenants. A net value lease gives you the value of the premises net of the upkeep costs. Examples of shared costs include property taxes or professional management fees. Commercial leases tend to run longer than residential leases. It is important that you review lease terms thoroughly before you sign.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
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