Commercial Property Leases

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Commonly Asked Questions about Commercial Property Leases

What is the best type of commercial lease?

Compare Commercial Lease Agreements Gross leases tend to benefit the tenant, whereas net leases are more landlord friendly. In a gross lease, the tenant has more control over how much is spent on such expenses as janitorial services and utilities.

What is the best lease type for commercial property?

Gross Lease Gross leases are most common for commercial properties such as offices and retail space. The tenant pays a single, flat amount that includes rent, taxes, utilities, and insurance.

What is the most popular type of lease?

Net leases A triple net lease, sometimes known as an NNN lease, is the most common type of commercial lease. A triple net lease is a lease whose monthly rent fee does not include operating expenses. Typical operating expenses include insurance, utilities, property taxes and maintenance costs.

What is the best commercial tenants to have?

The Best Types of Tenants for Commercial Properties Automotive centers, gas stations, and even restaurants are often selected because they are closest to their customers. So if you have a flat tire, for example, youre going to the nearest mechanic rather than the cheapest or a local favorite.

What kind of commercial tenant is most likely to have a percentage lease?

Landlords in shopping centers and some strip malls may demand a share of a retail tenants profits in addition to the monthly rent. If you have a retail business and are headed for the mall, you may be asked to pay whats known as percentage rent.

What is the best commercial lease for a tenant?

Gross leases tend to benefit the tenant, whereas net leases are more landlord friendly. In a gross lease, the tenant has more control over how much is spent on such expenses as janitorial services and utilities.

What type of lease is most common in industrial properties?

Full-service: the tenant is only responsible for the rent. The landlord covers all other costs associated with the property. This is the most common type of industrial lease.

Who pays property taxes on a commercial lease in California?

In a single net lease, the tenant pays their rent, plus a share of the property tax burden. Theyre also responsible for the utility costs, maintenance, and other fees associated with their individual unit.