Most residential leases are standard and can be used for different tenants. What varies the most, obviously, is the time and price. The landlord is usually responsible for repairs and any renovations that are needed. For the most part, these leases are cut and dried without much room for negotiations. A COMMERCIAL LEASE IS A SIMILAR AGREEMENT IN PRINCIPLE, BUT MUCH MORE DETAILED Creating a working environment for a group of employees is different for each business. Some aspects may be standard but usually leases have to be customized to each business. The rent for commercial properties is based on the amount of square footage occupied by the tenant, plus, in some instances, a percentage of the gross income earned by the tenant. The leases are always longer and there is usually an option to renew for another term when they end. All the reasons we listed in Chapter 1 about the benefits of using tenant representation, are the reasons why realtors don’t work in the commercial industry. You may have a friend or relative who convinces you to let them try. For all those reasons and the expertise needed down to the last detail, it is not the best idea. Still, it is not uncommon to run into an agent who has practiced both in the past. They could be working in both fields now and you like them. Here are some questions to ask them or any commercial agent to see if they are the right person for the job. • Do you list commercial properties? How much time do you spend on that per week? And how much do you spend on residential real estate? • When did you last sell or lease a commercial property? How long has it been? The market changes weekly. Did 14
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