Leases used for commercial property differ from residential leases in a number of important ways. For example, there aren't any standard forms for commercial leases, and commercial leases may have much longer terms than residential leases. There are also fewer protection laws for lessees. This makes it doubly important for you to understand any commercial lease before you sign it.
There are 3 main types of commercial leases: percentage, net, and full-service. No matter what type of lease you have, make sure it includes terms that work for both you and your business.
With some percentage leases, you won't have to pay a percentage of your sales regardless of how much money you take in. You may only have to pay a percentage above a certain dollar amount. For example, you might have to pay 5 percent of all sales above $30,000 for the month. Percentage leases are common in retail spaces, such as in shopping malls.
"In the U.S. most commercial leases are 'triple net' leases. This means that the tenant pays pro rata charges for landlord's taxes, insurance, and common area maintenance or operating expenses for the building, shopping center or mall."
This type of lease is common for office buildings, but you may also be able to find a retail or industrial space that comes with a fully serviced lease. Fully serviced leases are also known as gross leases.
When you're reviewing a commercial lease, pay attention to the following:
If you have any questions about a commercial lease, consult a lawyer so they can review it and inform you about any potential problems. A bad deal on a lease can affect your business for years to come, so carefully consider all the aspects of a lease before you sign it.