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Commercial Real Estate Leases – Numerous Options Defined

By
Real Estate Agent with Alex Lowery Real Estate

REMAX DFW Associates

Check out my other Commercial Real Estate Blogs:
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Commercial Real Estate Leases - Numerous Options Defined

A wide range of commercial leasing possibilities exist. Typically, an office lease in a major city and a retail lease in a suburban shopping center will be considerably different.

From a broad perspective, there are a few types of leases commonly found. Within these categories, leases may vary considerably.

Gross lease: The tenant pays a set amount of rent and the landlord is responsible for payment of taxes, insurance and other costs associated with owning the property.

Net lease: The tenant pays the rent plus a portion of the maintenance fees, insurance premiums and other operating expenses.

Triple-net lease: Typically, for a freestanding facility, this type of lease has the tenant paying for all fees and operating expenses associated with the space.

Shopping center leases: The tenant pays a base rate in conjunction with the square footage of the retail facility. Typically, the tenant will also pay some common charges and frequently a certain percentage of the gross sales. The tenant may also be assessed part of the property taxes. A shopping mall lease will often include terms about signage, hours of operations, common areas and deliveries. The landlord may also have the right to relocate the tenant.

Land or ground lease: The tenant leases the grounds and builds on the property. Typically, with a land or ground lease, all improvements on the property, including any building or buildings revert back to the landowner at the end of the lease period.

There are numerous variations on common lease forms. For example a lease may cover both office and warehouse space in one facility with separate rental amounts and separate options.

Let A Tenant Broker Help You

A tenant broker is a person who helps prospective tenants or buyers locate suitable commercial property. Tenant brokers can provide you with sound analysis of real estate market conditions, inform you about space availability, and even negotiate lease terms with a landlord.

Before you commit to renting a property, make sure that you have a tenant broker representing your interests. Landlords also hire brokers - called "leasing agents" - to fill vacant space in their buildings, but these agents work for the landlord, not for you. They earn a commission from the landlord or building owner each time they get a tenant to sign a lease and occupy space.

Although a building owner also pays a tenant broker's fee, tenant brokers don't work as exclusive leasing agents for one property or one landlord. When you hire a tenant broker, he or she works for you. Beware of landlords or leasing agents who refuse to work with your broker: This is a pretty sure sign you're dealing with disreputable people.

A tenant broker should give you objective advice, since their commission isn't directly tied to a particular property. In addition, working with a broker lets a landlord know you're seriously looking at multiple leasing opportunities. This may make a landlord more competitive and willing to negotiate favorable lease terms.

I am available and well prepared to assist you in reaching your real estate objectives. If you are ready to move forward, you can reach me at 214-234-6901 or by email at Grant@GrantHowell,com. You may also visit my Web site at www.brokerMyHouse.com for additional information on all the real estate services I offer.

REMAX DFW Associates

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