It might not be uncommon for many companies in New York and across the nation to hold numerous real estate properties. While some of the properties may remain in constant use, business owners may have other locations that they might wish to lease out. Part of preparing to lease commercial property could involve understanding the various types of commercial leases and the possible advantages and disadvantages of each in turn.
Types of leases
There are various types of commercial leases and each available option may function in its own way. For instance, a full-service lease is a type of arrangement in which the tenant will be responsible for paying a base amount for rent, while the property owner may be responsible costs related to items such as taxes, insurance and building maintenance. With a modified gross lease, tenants may agree to pay base rent along with a certain portion of operational expenses.
Net leases are another common option and such arrangements could come in the form of single, double or triple net leases. Experts indicate that financial responsibilities for these agreements rest somewhere between those of full service and modified gross leases. Percentage leases are an example of a common type of arrangement in which tenants agree to pay a percentage of profits on top of the agreed upon rent payment.
Choosing the right fit
Business owners who are weighing the possibility of leasing commercial property may have questions about how best to approach the process. Prior to making a decision, a person in New York could find it helpful to consult with an attorney for guidance on the types of leases available and on vital factors to address. An attorney can advise a client on which type of lease might prove the best fit for the situation and assist him or her in navigating every step of the subsequent leasing process.