Commercial Lease Agreement:
A Commercial Lease Agreement is a contract for the renting of space by a landlord to a tenant that will be used for purposes other than housing. Those commercial purposes may include: retail, office, or industrial space. Commercial leases usually have a term of multiple years with options to renew at negotiated rent amount. A commercial tenant can be anyone from a sole proprietor, to a small business, a major corporation, a chain store, or office space, such as medical or legal offices.
The general information included in Commercial Lease Agreements includes: the names of the Landlord, the Tenant, any guarantors, if applicable, the rent amount, terms of the lease, such as length of the lease and any other terms that the parties have negotiated and agreed to.
Lease Types:
The Parties may agree to different terms, one important factor in Commercial Leases is what type of lease is it. Those types may include:
Net Lease - or sometimes referred to as a Triple Net Lease, the Tenant is responsible for the rent plus some additional costs, such as certain operating costs or a portion of all the landlord’s operating costs for the building and common areas. Those costs include property taxes, property insurance and any expenses related to property maintenance.
Gross Lease - In a gross lease the rent is fixed amount and the Tenant is not responsible for any other any additional costs (such as operating costs), which the Landlord is responsible for all other costs and expenses relating to the property.
Modified Gross Lease - is similar to Gross Lease, however it is modified in that the Tenant is also responsible to pay for certain operating expenses, in addition to the rent.
As with any agreement, it is important for the parties involved to negotiate any and all terms and ensure those terms are agreed to in writing and for the parties involved to negotiate any and all terms and ensure those terms are agreed to in writing.