fair distribution for utility build and shared area costs.
One con of this is that landlords have been known to be lazier in these leasing agreements. So if the tenant works out a lease making landlords responsible for maintenance, the landlord may be less motivated to get something fixed (or be cheap about it), as opposed to other types of leases. That’s because in this lease some landlords are motivated by spending less on it to save themselves money.
PERCENTAGE LEASE
This is only for retail or restaurants. The tenant will pay a portion of their rent that is based on a certain percentage of gross sales each month. This lease helps the tenant when sales are weak and helps the landlord when sales are strong. It’s important to know what type of lease you prefer before going into your property search. Even though your first choice for office space may not offer the type of lease you want, you can sort your other options by weighing the different types of leases they offer.
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