In any event, and regardless of the type of tenancy in which a commercial tenant is currently locked up, it can be extremely helpful to understand everything about the commercial leasing process and the parties involved. NNN leasing real estate is often held by investors who prefer to take an over-the-counter approach to management. The lease determines whether and under what circumstances an assignment or sublease is allowed. In many cases, the tenant retains some or all of the responsibility for the payment of rent and liability for damage to the property. The type of rental on a commercial property can also tell you something about the tenant`s intentions. A double net lease or “NN” lease makes the tenant responsible for basic rent, property taxes and property insurance costs. The landlord will usually include a rental staircase, so that if the software company agrees to renew its lease, the landlord will benefit from an increased rent. At first glance, it may seem quite easy to project the cost of renting space in a commercial building. As soon as you and your team choose a commercial space to rent, you negotiate costs and conditions, sign the polka dot line and shoot into the room.
In reality, a complete understanding of a commercial lease requires attention to detail and the assistance of a tenant. Who is responsible for paying property taxes and insurance, you or the owner? Who pays for the security fees? To find the answer to these important questions, you need to know exactly what type of commercial rental you are signing. Let`s look at the different types of commercial real estate rentals so you know what the costs are to be expected and how to negotiate an agreement. Signing a full lease (or gross lease) means that you are responsible for paying the basic rent. However, the lessor pays all construction costs, including maintenance costs, insurance and property taxes. When preparing for the signing of a full lease, make sure that the lease is credited for the maintenance of the public sector. The landlord can recover his expenses with “Load Factor” in the rent. There are other ways to define rental contracts as a percentage.