What costs do you have with your commercial lease?

You decide to rent a space for your new business. You want a prime location, after all, and the company doesn't yet have the capital to buy. You figure you can rent for a few years and then invest in a building of your own.

When you sign that commercial lease, make sure you pay careful attention to just what you're going to owe. The terms should spell out your costs, and you never want to assume that it's just rent.

For example, a gross lease -- also called a full-service lease -- means that the base rent is (mostly) all you'll pay. The landlord will pay for insurance, maintenance, real estate taxes and the like. The expenses of the building fall on them, while your costs stay stable every month.

However, even with this type of lease, you may need to pay something toward the common areas. This can be used for maintenance. All renters may have a slightly higher total payment than just renting the space that they use, with the landlord accounting for the costs in parts of the building -- like stairwells or an open patio -- that no one is renting at all.

Not all leases work this way. With some, you have to pay for maintenance and upkeep on your own. With others, you put the utilities in your name and pay that separately, while paying rent to the landlord. There are many ways to do this.

The key is just to make sure you understand what your lease says and what legal obligations it creates before you sign a commercial real estate lease.

No Comments

Leave a comment
Comment Information

Hear From Our Clients

Mr. Skolnik and Mr. Gaboury have represented me on multiple cases over the past two years. They are dependable, knowledgeable, and professional. They provided high quality legal guidance for my small business during a difficult time and brought me a peace of mind. I highly recommend Cox Padmore Skolnik & Shakarchy as your legal business representative. -Anonymous

Read More Reviews

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Tap To Request An Exploratory Consultation

New York Office
630 Third Avenue
23rd Floor
New York, NY 10017

Phone: 646-355-1648
New York Law Office Map

Great Neck Office
98 Cutter Mill Road
Suite 310N
Great Neck, NY 11021

Phone: 646-355-1648
Great Neck Law Office Map

Hackensack Office
27 Warren Street
Suite 304
Hackensack, NJ 07601

Phone: 646-355-1648
Hackensack Law Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Phone: 646-355-1648
Denver Law Office Map