Question #1: What Type of Commercial Lease is Being Offered?
The type of lease being offered is probably the most important thing to consider first because it determines how you will be charged rent. The terms of commercial real estate leases are defined by the type of commercial lease.
Some commercial leases are straight-forward, but most are not. If you do not know what a Triple Net Lease is, or what “Load Factor” means, or how your rent will be calculated (it is rare that you will be charged only for the actual square footage you will occupy), you cannot negotiate better terms. Is the lease “full service” or “percentage based?” The key to negotiating terms of a lease may be contingent on first negotiating the type of lease.
Ask to see a copy of a sample lease. A landlord who refuses to let you have time to look over lease terms before signing is not one to be trusted. Commercial leases can be just a few pages, but are more typically 15-20 or even more pages in length.
If you want a lawyer to look over the lease and the landlord refuse – do not sign the lease!
Types of Commercial Leases
There are many types of commercial leases, and some overlap. Since certain types of leases may include services (like, janitorial, utilities, etc.) and others do not, it is important that you specifically ask what kind of lease it is, as well as if it includes services, load fees, percentage fees, or other fees association with "net" leases.
Types of leases typically offered in commercial leasing include:
