These are some aspects to bring up during negotiations. The tenant should also ask how often the janitorial services are offered. This lease is the most common for a reason. It lets the tenant focus solely on their business plan, and puts the responsibility for everything else on the landlord. Having a landlord who is responsive and easy to communicate with is key in this type of lease. Your broker should know their history and help guide you with it.
NET LEASE
These types of leases are highly adjustable. The base rent for a net lease is lower than a full-service lease. This is because the tenant is responsible for operating expenses that can fluctuate. These can include property taxes, property insurance, repairs, maintenance work, trash collection, landscaping, parking, water, electricity, sewer, and any shared common space services. There can be benefits for this type of lease if it is used in the right office situation. There can also be negatives. The following are a few types of different net leases that landlords use.
SINGLE NET LEASE
The tenant pays a fixed rate plus a share of the property taxes. That percentage of the property taxes can be negotiated with the landlord in some situations. The tenant is responsible for janitorial services and utilities directly while the landlord pays the other costs associated with the property. While the property taxes are built into the rent and could fluctuate, you have to pay the other two costs separately. Depending on those costs will determine if this style of lease costs less or more than a full-service lease.
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