When people think of leases, they probably assume that all real estate leases are the same. This is far from the truth. Commercial leases are much different from residential leases. Understanding the differences can help you as you review the options you have for a commercial lease.
While a commercial lease might be written so that you pay the landlord one flat lease payment each month without having to cover anything else, it’s unusual to find a lease of that type. Most commercial leases contain terms that shift part of the property expenses onto the business that’s leasing the property. One type of lease that’s common is the triple net lease.
What are the terms of a triple net lease?
Triple net leases usually have a lower charge for rent than other types because the business renting the space is responsible for paying additional costs. These include building insurance, maintenance and property taxes. There may be some other expenses included, so be sure that you thoroughly read the lease to find out exactly what you’re going to have to pay so you can determine if the monthly expense fits in your budget.
Before you sign a lease on a commercial property, be sure that you understand exactly what you’re going to be responsible for paying. Not all commercial leases contain a single payment for everything that you need to pay, so remember to check the fine print to determine what other expenses you’ll have. Having someone else review the lease for you may help you ensure that you’re signing a lease that’s in your company’s best interests.