CHAPTER 5 The Different Types of Commercial Leases cial Leases
There are three different types of commercial leases used by landlords. They differ in how they are structured and what fees are assessed. They all offer different pros and cons, each providing a base rent and having different ways of using the other costs. Landlords are always the party that chooses what lease is used. It’s cut and dried. The tenant doesn’t get a say in what type of lease a landlord prefers. When you search for properties, you must know what type of lease each has before you contact the landlord. The main types of leases are full-service leases, net leases, and modified gross leases. If you start your property search early enough, you’ll have time to find enough preferred spaces. Then you can weigh the pros and cons of each space and their accompanying lease against each other. Going into the process looking for specific types of leases is smart as well. Tenants who start their search late or are unprepared may be forced to take a type of lease that doesn’t work best for them and their company. Terms will vary with every landlord and property, but the leases generally stay within these few categories.
FULL SERVICE LEASE
This is the most common type of lease for office space. In this lease, the rent is all-inclusive. It can also be referred to as a gross 25
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