Are you looking for a commercial space for your business or firm? If so, you must consider a legally binding agreement between you and the landlord, also known as a commercial lease. Here is a review of four common commercial leases.
1. Single Net Lease
A single net lease is a type of commercial lease where the tenant must pay base or fixed monthly rent plus maintenance and utilities. The tenant also pays a portion of local and state property taxes. Notably, the single net lease ensures that property taxes are paid on time. However, this form of lease is uncommon in the real estate field.
2. Double Net Lease
Under the double net lease, the tenant is expected to cater for property insurance, building taxes, and the base rent. In this case, the landlord is tasked with providing maintenance and utilities. The double net lease is typical among multi-tenant buildings.
3. Triple Net Lease
If you opt to sign a triple net lease, you are expected to cater to all the operating costs. They include; property insurance, utilities, building taxes, and maintenance costs. The triple net commercial lease is favorable for landlords who transfer these responsibilities to individual tenants.
4. Gross Lease
The fourth type of commercial lease is known as the gross lease. With this form of lease, the tenant is legally obliged to pay the base rent. However, he or she is exempted from maintenance costs such as utilities, management, and insurance. Also, you are exempted from paying property taxes. These costs are supposed to be catered for by the landlord.
The review highlights the basic rules and information contained in various commercial leases. However, the details vary. It is, therefore, advisable to go through the terms and conditions of the leases before signing. That said, feel welcome to get in touch with Capital Crown Investments for exemplary commercial lease services.