1. Know What Type of Commercial Lease is best for you and your business.
- Gross lease: Occurs when the tenant is only responsible for rent and the landlord covers all other costs associated with the space. This is the most common type of commercial lease and the one that provides the most protections to tenants.
- Triple net: In a triple net lease, the tenant pays for rent, insurance, property taxes and property maintenance costs.
- Percentage: In a percentage lease, the tenant pays a pre-determined amount of base rent each month and a percentage of their monthly sales from that property. Percentage leases are most commonly used in retail spaces.
2. Steps in evaluating a commercial building lease
Once you have explored different options for leasing a space for your business, carefully evaluate the terms of each lease and how they would support or hurt your success. Follow these steps when evaluating a commercial building lease before making a final decision:
- Understand your needs
- Research the market
- Form a leasing team
- Consider the long term
3. Consult a professional
Unlike residential leases each commercial lease is unique and filled with complicated industry jargon. You would never go to court without representation would you? Just the same you should ensure that your business interests are protected and well represented when entering into a leasing contract.
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