If you cannot afford to purchase a property for your business, you may want to lease commercial real estate instead. Before you walk into a meeting with a property owner, you should understand the different types of leases he or she may offer you. Popular Types of Commercial Real Estate Leases 1. Net Leases The net lease typically has a lower base rate. However, that’s because the tenant is also expected to pay other expenses. Triple net leases are particularly popular. Tenants who sign one of these leases must pay their monthly rent along with some or all of the property insurance, property tax and common area maintenance costs. 2. Gross Leases A gross lease typically has a higher rent that covers the cost of various operating expenses such as utilities and taxes. This type of lease is popular for retail and industrial properties. The rent can remain fixed even as operating expenses change, making gross leases more favorable to tenants. 3. Modified Leases As its name implies, a modified lease is a more flexible gross or net lease. The tenant and owner can negotiate the exact terms. How To Lease Commercial Real Estate While having background information about commercial leases is helpful, renting a property can still be scary. Luckily, there are firms that specialize in commercial buildings. To lease commercial real estate, simply contact a broker or advisor who understands your local market and the industry as a whole.
0 Comments
Leave a Reply. |
AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
January 2023
Categories
All
|