Leasing can be a much more affordable and flexible option compared to buying a property for your business. There are several different types of commercial leases that you can get and finding the right location and lease that fits your business’ needs is easier said than done.
What Are Your Options?
If you’re considering leasing out a commercial property, then learning about what types of commercial leases are available and what their benefits and downsides are will help you make your choice. Depending on your commitment, needs, and budget, one lease might be better for you than another. We’ll go over 7 different commercial leases that you can choose from.
A percentage lease is a type of lease where you not only pay money to lease the property but you also pay a percentage of your sales to the owner of the lease agreement. One of the benefits of this kind of lease is that the base lease price is usually lower than a standard commercial lease. This is a very mutually beneficial lease for the simple fact that the landlord is depending on the sales of your business the same way that you are. So the landlord will be much more motivated to maintain the property and make sure it’s the best that it can be for the sake of your business.
With a net lease you’ll be paying for taxes and other expenses that the landlord would normally pay for, on top of the base lease price. This type of lease can be appealing to the landlord because they’re splitting a lot of the upkeep payments with the tenant. Just like with a percentage lease the base lease price will typically be less than a normal lease, so if you’re worried about being able to afford a rental space this lease might alleviate some of those fears.
Double Net Lease
A double net lease is similar to a net lease. The main difference with a double net lease is that the tenant will be paying insurance premiums on top of the taxes they’re already paying, and the landlord will pay for maintenance fees.
Triple Net Lease
A triple net lease is a more extensive version of the net lease and double net lease. On top of paying the taxes and insurance premiums, the tenant will be required to pay the maintenance fees as well.
Typically the more of the responsibility the tenant has the less their base lease will cost.
Fully Serviced or Gross Lease
A fully serviced or gross lease is a lease where the tenant will only be responsible for the payment of the lease itself, while all other expenses are the landlord’s responsibility.
Modified Gross Lease
When a tenant begins a modified gross lease they’ll be required to pay the standard lease agreement but eventually the tenant will be responsible for paying for a portion of the building’s annual expenses at the end of the base year of the lease.
While some other leases require the tenant to pay for some of the fees associated with the rental property, an absolute lease makes the tenant entirely responsible for all expenses for the property, making the landlord completely free of paying any of the fees.
What Else is There to Learn About Leases?
Schwarz Properties can provide you with a vast wealth of information on different matters related to leasing. If you’re interested in learning more about leasing properties then feel free to visit our website or call us at (336) 895-1336 for more information.