The commercial real estate market in New York City is one of the most robust in the world. Not only are there people and companies interested in buying this type of real estate, but the same holds true among those who are looking to lease.
When it comes to leasing commercial real estate, there are many steps a person must take in order to achieve success. Furthermore, there are potential roadblocks to be aware of along the way.
Upon getting started, it is a good idea to learn more about the types of commercial leases. This can help a person make the appropriate decision as to which lease is best for their business. Here is a list of the many types of commercial leases:
-- Fixed or flat leases.
-- Gross leases.
-- Step leases.
-- Cost of living leases.
-- Net leases.
-- Net-net leases.
-- Percentage leases.
Of these, a fixed or flat lease is the most common. This is when a tenant pays a set monthly rent for a definite period of time, such as one year.
Knowing the ins and outs of each type of lease can go a long way in avoiding trouble down the road, such as an issue resulting from a miscommunication during negotiations.
There is a lot of homework to be done before leasing any type of property, either commercial or residential. Some people are worried about making a mistake that could cost them in the long run. To protect against this, many reach out to a real estate attorney for guidance.
Source: FindLaw, "Types of Leases" Jan. 08, 2015