Are you interested in leasing commercial space? If so, there will come a time when lease negotiations begin. This can be as simple or as difficult as you make it.
To avoid confusion, to ensure that you sign the right type of lease, you need to learn as much as possible about this type of real estate transaction. This means many things, including a sound understanding of the many types of commercial leases.
-- Fixed or flat leases
-- Gross leases
-- Step leases
-- Net leases
-- Net-net leases
-- Percentage leases
A fixed or flat lease is most common. This is when you agree to a rent payment for a predetermined period of time. For example, $2,500 per month for three years. The benefit of this type of lease is that you know exactly what to expect each month.
The other types of leases are used from time to time, but they are not as common. For instance, a step lease is when the rent is increased by a predetermined amount on an annual basis.
Since there is more than one type of commercial lease, anybody searching for space needs to keep an open mind. You have to do what is best for your company, while realizing that the landlord will be doing the same.
No matter where you live, it is likely that you can find commercial space for rent. However, negotiating a lease is not always as simple. When you know your options in New York, you can get creative to ensure that both parties are happy with the final deal.
Source: FindLaw, "Types of Leases," accessed March 18, 2016