A commercial lease is a legal document that states the terms on which you are the renter of a piece of real estate. The lease will include information such as what the landlord is responsible for and what you are responsible for. This can include insurance, taxes, repairs, and utilities. There are four different types of commercial leases:
1. Gross Lease:
2. The landlord is responsible for paying taxes, insurance, utilities, and repairs. Rent is a great deal higher because these expenses will be factored in.
3. Net Lease: You are responsible for the taxes, insurance, utilities, and repairs in addition to the rent.
4. Double Net Lease: You are responsible for paying the landlord rent as well as insurance and property taxes.
5. Triple Net Lease: You are responsible for paying the landlord rent as well as insurance, taxes, utilities, and repairs.
Make sure the Real Estate Lawyer in San Diego that you have hired to oversee negotiating the lease checks for a clause about annual rent increase. You want your Real Estate Lawyer in San Diego to check for this clause because it protects both you and the landlord. Typically, landlords increase their annual rent by a certain percentage every year. The percentage of the increase is usually not something that they will negotiate.
What you are looking for is a grace period before they start raising the rent on you. This could be six months, a year, or two years. It depends on the length of the initial lease. You should also discuss a maximum cap of how high the landlord can increase the rent over a period of years.
Do not be afraid to use a commercial space in a prime location to your advantage, even if it needs work. Offer to pay to fix up the space or make improvements in exchange for cutting back on the rent. If the landlord is hesitant, offer to restore the space to its original condition before moving out. This is a good offer because the landlord does not have to worry about liking or not liking any modifications you make to the commercial space. You can click to find more info on how to effectively seal a commercial real estate deal.
