Types of commercial lease agreements to choose from

If you are a business owner looking for office or retail space, you will need to enter into a commercial lease agreement with the property owner.

commercial lease agreements


There are various types of leases agreements available, so it's important to understand the differences before signing on the dotted line. In this blog post, we will outline the four most common types of commercial leases.

1. Gross lease

A gross lease is a type of lease in which the tenant pays a flat monthly rent amount, and the landlord is responsible for all property-related expenses, including utilities, repairs, and taxes. This type of lease is ideal for businesses that want to avoid unexpected costs related to property ownership.

2. Triple net lease

A triple net lease (also known as an "NNN lease") is a type of lease in which the tenant pays a fixed monthly rent amount plus three additional payments:

(1) The cost of all property-related utilities,

(2) The cost of all repairs and maintenance, and

(3) The cost of property taxes. This type of lease is popular among businesses that want to avoid the hassle of property ownership and are willing to pay a little bit more for that convenience.

3. Modified gross lease

A modified gross lease is a type of lease in which the tenant pays a fixed monthly rent amount, and the landlord is responsible for some, but not all, of the property-related expenses.

This type of lease is popular among businesses that want some flexibility when it comes to their monthly expenses.

4. Tenant-in-possession lease

A tenant-in-possession lease (also known as a "TIP" lease) is a type of lease in which the tenant occupies the space on an informal basis, without entering into a written agreement with the landlord.

This type of lease is popular among businesses that are in the process of finding a more permanent space.

It's important to understand the different types of commercial leases available before signing on the dotted line. By knowing what each type of lease entails, you can make an informed decision about which is best for your business.

Conclusion paragraph:

Which type of lease agreement is best for your business? That depends on a variety of factors, including the amount of space you need, the location you're looking for, and your budget.

Contact us if you have any questions about which lease agreement would be best for you, or if you need help negotiating terms with a property owner. We're here to help!

 

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